Hot off the press are the key headlines from the Spring 2024 Budget.
Summarised below are the major points that might impact you:
Employee National Insurance (NI)
To qualify for certain benefits and the State Pension you pay National Insurance contributions.
The main rate of National Insurance is falling again - this time from 10% to 8%
In the 2023 Autumn Statement NI was cut from 12% to 10% and helped over 25 million workers.
What could the announced changes mean for you?
The table below shows how someone will benefit from April 2024.
| Salary | Savings | Savings (if self-employed) |
|---|---|---|
| £25,000 | £435 | £294 |
| £40,000 | £960 | £444 |
| £60,000 | £1,320 | £556 |
| £80,000 | £1,320 | £556 |
| £100,000 | £1,320 | £566 |
Child Benefit.
Claimants who earn more than £50,000 per tax year lose some of their family's child benefit - all benefit is lost once a parent earns over £60,000. However, a family where two parents jointly earn more than £50,000 receive the full amount.
New changes are planned from April 2026 but two changes are immediate.
What do the announced changes mean for you?
From April 2024, a parent can now earn £60,000 each tax year and keep their child benefit in full. A parent can now earn up to £80,000 per year and still get to keep some child benefit - earning above £80,000 means losing all child benefit.
Household Support Fund
This gives local councils funding to support vulnerable households with paying for essentials, such as energy and water bills, rent, food and more.
What do the announced changes mean for you?
Support was due to end on 31 March 2024, but has now been extended for six months and will offer additional help.
Summary
As would be expected ahead of an election, cuts have been introduced to lower the amount of ‘tax’ paid by people - as with the Autumn Statement a few months back, this is driven by National Insurance.
With the sharp cost of living over the past few years the question is whether people will feel better off than in previous years, not just better off than yesterday.
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Remember the information provided in this article is for information purposes only and should not be considered as advice.
