The recent Budget announcement by Chancellor Rachel Reeves included a significant change regarding the removal of the two-child benefit limit. This alteration will allow families with three or more children to receive increased support through universal credit and tax credits. Lucy Burns, a mother from Eastbourne, expressed that the extra financial assistance would help her family, providing more stability in managing monthly expenses.
Burns, who balances her own business with family responsibilities, noted the rising costs of living, including essential expenses like fuel and childcare. She stated the changes would allow her to save for her children’s future.
Another aspect of the Budget involved the decision to freeze income tax thresholds until April 2031. This extended freeze means that as wages increase, more individuals will find themselves paying higher tax rates. The Office for Budget Responsibility estimates that this could impact an additional 780,000 people. Concerns about this decision were echoed by Tom Reveley, a business director in Kent, who questioned the lack of investment-focused measures in the Budget.
Lauren Harper, a mother of four, articulated how the rising cost of food would affect her family’s budgeting, specifically mentioning the challenges of feeding a family of six.
Among the new policies introduced, starting in 2028, electric vehicle and hybrid car drivers will be taxed for road usage, which drew criticism from individuals attending a Budget viewing event. However, there was positive feedback regarding the announcement of free training for SMEs providing under-25 apprenticeships, which some viewed as beneficial for business growth.
Lastly, the state pension will rise by 4.8% in April, aligning with average wage increases. This adjustment will raise the new flat-rate state pension to £241.30 weekly, which some older citizens welcomed as necessary given current living costs.
Source: https://www.bbc.com/news/articles/c5yq835eyd1o?at_medium=RSS&at_campaign=rss