Table of contents

Here’s an overview of the key points from the 2024 Budget, announced by the Chancellor yesterday afternoon (March 6).

We’ve covered the topics that could affect you and your money:

Tax

  • National Insurance, a payroll tax, cut by 2p in the pound for employees and the self-employed
  • The salary thresholds at which people start paying income tax and national insurance remain frozen – meaning people will pay more tax as their incomes rise, a process called fiscal drag.
  • Non-dom tax regime, for UK residents whose permanent home is overseas, to be replaced with new rules from April 2025
  • £5,000 UK ISA tax allowance for savers investing in “UK-focused” shares – to be set up following a consultation

Benefits and income support

  • Full child benefits to be paid to households where the highest-earning parent earns up to £60,000 – the current limit is £50,000
  • Partial child benefit to be paid where the highest earner earns up to £80,000
  • Longer repayment period for people on benefits taking out emergency budgeting loans from the government
  • Government fund for people struggling with cost of living pressures to continue for another six months
  • admin fee to obtain a debt relief order scrapped
  • Child benefit to be paid to more families

Inflation and the economy

  • Office for Budget Responsibility predicts UK economy to grow by 0.8% this year and 1.9% next year.
  • Growth of 2% predicted for 2026, with 1.8% in 2027 and 1.7% in 2028.
  • UK’s inflation rate forecast to fall below 2% target “in just a few months’ time”.
  • Underlying debt, excluding Bank of England debt, forecast to be 91.7% of GDP this year, rising to 92.8% next year.
  • Overall day-to-day government spending to grow by 1% in real terms over next five years.

Transport and energy

  • Fuel duty frozen again, with the 5p cut in fuel duty on petrol and diesel, due to end later this month, kept for another year
  • “Windfall” tax on the profits of energy firms, which had been scheduled to end in March 2028, extended until 2029
  • Air passenger duty, the tax paid on flights, to go up for business class tickets

Housing

  • Higher rate of tax paid on profits from selling property cut from 28% to 24%
  • Tax breaks for owners of holiday let properties scrapped
  • Stamp duty tax break when purchasing multiple properties in England or Northern Ireland to end in June

We’re delighted with the news from the #Budget2024 that the application fee for Debt Relief Orders is to be removed.

Our CEO, Rachel Duffey, said: “When you’re facing debt, paying fees to get help can make things even more difficult. This change will make it easier for people to get back on their feet and improve their financial situation.”

If you’re worried about your finances and need free debt advice, we can help. Contact us on 0800 316 1833 to get started or visit www.payplan.com