The Budget: What’s Occurring?

Money | by | 8th Jul 2015

Today is budget day, or rather was budget day now that the details have been announced. What will follow in the short term is a lot of commenting, arguing and finger-wagging from various people in the news, on the telly and across social media.

But what does it really mean for us as families in the long term? Below are some of the key points in the simplest terms. If you have anything you’d like us to add, or any comments to make, please contact us and we’ll include your words at the bottom of the article.

The 2015 post-election budget includes:

  • 30 hours of free childcare for working parents of three and four-year-olds
  • A new, compulsory National Living Wage of £9 per hour for over-25s by 2020. The increase starts next April at £7.20 per hour – up from current minimum wage of £6.50
  • The reduction of the benefits cap to £20,000 (£23,000 in London)
  • Tax Credit and Universal Credit to be limited to families with up to two children from 2017
  • Working age benefits frozen for four years
  • The NHS will receive an extra £8bn by 2020
  • No changes to fuel duty
  • Housing benefits for 18-21-year-olds scrapped for those deemed not vulnerable
  • Rents in social housing sector reduced by 1% annually for next four years
  • Maintenance grants to be replaced with loans for new students from 2016/17
  • Climate Change Levy exemption for renewable electricity to be scrapped.
  • Pensions tax annual allowance to be gradually reduced to a minimum of £10,000 from next year
  • Inheritance tax scrapped for estates under £1m

For full details on the budget visit GOV.UK.

Photo Credit: DG Jones via Compfight cc

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