A UK Breakdown! What the Budget 2024 means ?

• More Money in Your Pocket: National Insurance (NI) is getting a haircut! The rate is dropping from 10% to 8% for employed workers, meaning you’ll keep a little more each paycheck. (Explain briefly what NI is for viewers unfamiliar with the term)
• Boost for Families: If you have kids, there’s good news! The threshold for the high-income child benefit charge is rising, so more families will qualify for the full amount. Plus, the amount of child benefit itself is also increasing.
• Cheaper Energy (Maybe): Energy bills are predicted to come down, with the average household paying around £238 less per year. However, remember, this is an estimate!
• Minimum Wage on the Rise: Looking for a job? Great news! The minimum wage is getting a bump, going up to £8.60 for 18-21 year olds and £11.44 for those over 21.
• Help with Childcare: Working parents with two-year-olds can now access up to 15 hours of free childcare during term time.
• State Pension Increase: Retirees will see a welcome boost to their state pension, rising by a healthy 8.5%.
• Benefits Uplift: Those receiving inflation-linked benefits can expect a 6.7% increase.
• Statutory Pay on the Rise: If you fall sick, you’ll receive slightly more statutory sick pay, rising to £116.75 per week.
• More Maternity Pay: Expectant parents will get a little extra support, with statutory maternity, paternity, and shared parental pay all increasing.
• Frozen Alcohol Duty: Good news for beer lovers! The freeze on alcohol duty has been extended until February 2025.
• No Fuel Duty Hike: Filling up your car won’t get any more expensive as fuel duty remains frozen.
• Help for Struggling Households: The Household Support Fund has been extended for another six months to help those most in need.
• Debt Relief Order Fee Scrapped: If you’re struggling with debt, there’s some good news! The £90 fee for taking out a debt relief order has been scrapped.

The Not-So-Good News

• Tax Threshold Freeze: While some tax rates are going down, the thresholds for income tax are being frozen, meaning you might end up paying more tax even with your raise.
• TV Licence Price Increase: Get ready to pay a little more for your TV licence, as the cost is going up.
• Airfare on the Rise: Planning a holiday? Be prepared for pricier flights with the increase in Air Passenger Duty (APD).
• Capital Gains Tax Cut in Half: If you’re selling assets for a profit, be aware that the capital gains tax allowance is being significantly reduced.
• Higher Water Bills: Unfortunately, water bills are set to rise by 6% in England and Wales and a whopping 8.8% in Scotland.
• Council Tax on the Rise: Most people can expect to see an increase in their council tax bills.
• Telecom Price Hikes: Many broadband and mobile phone providers are likely to increase their prices mid-contract.
• Dental Fees Up: A trip to the dentist will cost a little more with a 4% rise in NHS dental treatment fees (England only).
• Car Tax Increase: Standard road tax has gone up slightly for most drivers.

Conclusion

So that’s a breakdown of the major changes to your money coming into effect this April! Remember, it’s a mixed bag, so be sure to factor these changes into your budget. If you have any questions, leave a comment below!