These changes could have an effect on your budget
IN THE first few days of April a host of new laws came into power which could potentially affect your household budget for better or for worse.
Changes include rises to the National Living Wage, vehicle tax, maternity pay and sick pay.
Here’s a brief run-down of what’s changing and the potential impacts.
Let’s start with the measures which could take a few quid from your pocket.
Council tax hike - almost all councils intend to increase bills by up to five per cent, adding around £70 to the average bill.
Water Bill prices increase by an average two per cent to £395
Prescription charges rise by 20p
TV Licence goes up to £147
April 1: Housing Benefit for 18 to 21-year-olds is scrapped - homeless charity Centrepoint estimates it could make another 9,000 young people homeless.
Employment Support Allowance (Work Related Activity Group) is being chopped from £102 to £73 a week for new claimants.
Universal Credit conditionality changes will mean parents are now expected to look for work when their youngest child turns three, rather than five. For the first time this affects those with pre- school children - an age financial advice. when child care is the April 10: Universal most expensive. Credit taper is cut from 65
Tax credits and Uniper cent to 63 per cent - versal Credit benefits are people will get to keep an being restricted to just two extra 2p in every pound children - this is expected they earn. to affect a million families. Other changes coming But it’s not all bad news. in could affect your lifeSome of the changes style and alter decisions stand to put some cash you make around your back in your hands. work or home life.
National Living Wage Apprenticeships for over 25s increases from A new levy on big busi£7.20 to £7.50 an hour for nesses to fund three milover 25s. lion apprenticeships will
There will be smaller come into force in April. increases for 18-20 and The new tax will raise 21-24-year-olds, to £5.60 £3billion a year from busiand £7.05 respectively. nesses with a salary bill of
The increase is coming more than £3m a year, so in because the Governsmaller companies won’t ment will look to follow be hit. through on its promises to The money raised will be move towards a national given to businesses who minimum wage of £9 per will use it to offer apprenhour for over 25s by 2020. ticeships and on-the-job
Pre-payment meter training for over 16s, so it cap comes in - OFGEM might be easier to get paid estimates this will save to learn a new skill this year. four million people £80 off £2,000 Tax-Free energy bills. Childcare Scheme
Personal Tax AllowThe new system will see ance increases to £11,500 the Government contribute and the 40% income tax 20p for every 80p that parrate now starts on earnents spend on care costs. ings from £45,000 This is the equivalent of upwards. the 20 per cent tax many
ISA Allowance people pay on their earnincreases from £15,240 to ings - hence the name ‘tax £20,000. free’.
State Pension rises by Under the scheme’s 2.5 per cent. rules, working families
People on the new flat could receive up to £2,000 rate pension will get a year towards the cost of £159.55 a week, up from childcare for each child £155.65. under 12, or up to £4,000
Those on the older sysfor children up to the age tem will see incomes rise of 17 with a disability. from £119.30 to £122.30. To register, parents are
Individuals will have a advised to complete the £500 annual tax and NICform on the Government’s free allowance for employnew Childcare Choices website.er-fundedpensionsadvice (with the cost of any Parental leave advice above that level The weekly rate of statusubject to tax and NIC as a tory maternity, paternity, benefit in kind). adoption and shared
It will be possible to parental pay will increase combine that allowance to £140.98 for pay weeks with the Pensions Advice commenced on or after Allowance to enable indiApril 2. viduals to access up to The weekly rate of statu£1,000 of tax-advantaged tory sick pay will increase to £89.35 from April 6.
As well as this, new limits on employment statutory redundancy pay came into force on April 6.
Businesses which dismiss employees for redundancy must pay those with two years service an amount based on the employee’s weekly pay, length of service and age.
The weekly pay is subject to a maximum amount.
From April 6 2017, this is £489, increasing from £479. Other new legislation An immigration skills charge will be introduced
Employers and businesses who sponsor skilled workers under tier two of the immigration points-based system will have to pay a levy of £1,000 per certificate of sponsorship per year.
This is £364 for small employers and charities.
The immigration skills came into force on April 6 2017.
Vehicle tax From April only 100 per cent electric cars will be exempt from road tax - bad news for anyone looking for a low-emission or diesel car, some of which currently avoid the tax.
Every other vehicle will be charged at a tiered firstyear rate based on its CO2 emissions - this could be more expensive for some cars.
But after that, cars will be subject to a £140 flat fee for every year after that.
This means a big hike for people looking for small, fairly economical cars, who could be paying over £100 more a year, though almost everyone will be paying more.
But remember this only applies to new cars bough after April - if you already own a car, or will be buying one registered before April 2017, there will be no changes to how much you pay.