Parents News Forum
Budget Summary
Quote from Penny McCarthy on October 31, 2024, 1:29 pmBudget Summary: Universal Credit and Child Benefit
The Labour government’s Autumn Budget, introduced by Chancellor Rachel Reeves, brings several new measures aimed at supporting UK families and addressing economic challenges. A Budget summary of key points include a 1.7% increase to Universal Credit and Child Benefit, with a notable £420 boost for some households. Funding for free school breakfast clubs has tripled, saving parents around £400 annually, while the National Living Wage rises to £12.21. In education, £2.3 billion will go toward school budgets and £1 billion to Special Educational Needs (SEN) support. Additionally, private school fees will be subject to VAT from January 2025, with increased NHS and housing investments.
Families with young children
A family with a combined income (employed) of £75,000 used to repay half their child benefit, as one parent earned £55,000. From April, however, the threshold for repaying child benefit rose to £60,000, meaning they now receive the full amount, which will increase to £26.05 per week next April for their eldest or only child. Although keen to buy a home, they won’t benefit from the first-time buyer stamp duty holiday—set to end on 31 March—potentially missing out on savings of up to £6,250 if buying after that date in England or Northern Ireland.
Private school fees will rise, budget summary
A much-discussed Labour policy has been formally announced, which means that VAT at the standard rate of 20% will be added to private school fees from 1 January, 2025.
How much extra that means parents of privately-educated children will have to pay depends on the decision of individual schools. Independent schools are concerned that some parents will not be able afford the higher fees which would cost the Treasury millions to cover additional state school placements. Concerns are rising over disruptions, particularly for students with special educational needs (SEND) and those in critical exam stages. Despite projected revenue growth, critics worry the policy could add pressure to already strained state schools.
Single Parents
For single parents receiving Universal Credit (UC), payments will rise by 1.7% in April, reflecting cost-of-living adjustments. However, a new policy reduces debt repayment deductions from UC payments, decreasing them from 25% to 15% of the standard allowance. This adjustment means households impacted by this change will see an average annual gain of £420. This measure is part of efforts to provide fairer financial support for single-parent households facing repayment obligations.
Parents News UK has an article on how The Budget affects Renters and Homebuyers
Budget Summary: Universal Credit and Child Benefit
The Labour government’s Autumn Budget, introduced by Chancellor Rachel Reeves, brings several new measures aimed at supporting UK families and addressing economic challenges. A Budget summary of key points include a 1.7% increase to Universal Credit and Child Benefit, with a notable £420 boost for some households. Funding for free school breakfast clubs has tripled, saving parents around £400 annually, while the National Living Wage rises to £12.21. In education, £2.3 billion will go toward school budgets and £1 billion to Special Educational Needs (SEN) support. Additionally, private school fees will be subject to VAT from January 2025, with increased NHS and housing investments.
Families with young children
A family with a combined income (employed) of £75,000 used to repay half their child benefit, as one parent earned £55,000. From April, however, the threshold for repaying child benefit rose to £60,000, meaning they now receive the full amount, which will increase to £26.05 per week next April for their eldest or only child. Although keen to buy a home, they won’t benefit from the first-time buyer stamp duty holiday—set to end on 31 March—potentially missing out on savings of up to £6,250 if buying after that date in England or Northern Ireland.
Private school fees will rise, budget summary
A much-discussed Labour policy has been formally announced, which means that VAT at the standard rate of 20% will be added to private school fees from 1 January, 2025.
How much extra that means parents of privately-educated children will have to pay depends on the decision of individual schools. Independent schools are concerned that some parents will not be able afford the higher fees which would cost the Treasury millions to cover additional state school placements. Concerns are rising over disruptions, particularly for students with special educational needs (SEND) and those in critical exam stages. Despite projected revenue growth, critics worry the policy could add pressure to already strained state schools.
Single Parents
For single parents receiving Universal Credit (UC), payments will rise by 1.7% in April, reflecting cost-of-living adjustments. However, a new policy reduces debt repayment deductions from UC payments, decreasing them from 25% to 15% of the standard allowance. This adjustment means households impacted by this change will see an average annual gain of £420. This measure is part of efforts to provide fairer financial support for single-parent households facing repayment obligations.
Parents News UK has an article on how The Budget affects Renters and Homebuyers