Financial changes will have effect on household budgets
ACHARITY has highlighted financial changes taking effect this month which could impact on household budgets in Runcorn and Widnes.
Citizens Advice Halton has helped more than 3,800 people with money queries over the last 12 months.
Issues tackled range from guidance on pensions and pay, to budgeting and shopping around for the best deal.
Now the charity is encouraging residents to see whether the upcoming changes will affect their household finances, so they can plan their money ahead.
April marks the start of the new financial year and fresh rates for wages, benefits and tax coming into force along with changes to pensions and savings.
Citizens Advice Halton’s chief officer Hitesh Patel said: “Keeping on top of changes that can affect your finances is one of the key ingredients to managing your money today and planning for tomorrow.
“It’s important to get to know which new rules will apply to you, and the difference they could make to your budget.
“Weighing up different changes can be complicated and if you’re not sure whether you’re affected or how, Citizens Advice can help.
“We can also help you build your money skills, from making use of technology to track your finances to working out how different deals compare.”
For more information visit haltoncab.org.uk ● Income
The National Living Wage for people over 25 will rise from £7.20 to £7.50 on April 1. There are ● also increases to the national Minimum Wage for younger workers.
From April 1, 18 to 21-year-olds who start a new claim for Universal Credit will not be automatically entitled to the housing element of the benefit. There are a number of exemptions, such as parents of children.
From April 2, the standard rates of statutory maternity pay, statutory paternity pay, statutory adoption pay and statutory shared parental pay will rise from £139.58 to £140.98 per week (or 90% of the person’s average weekly earnings if lower).
From April 3, new claimants for ESA aged 25 or over who the Government assesses as capable of working at some point in the future will receive £73.10 a week – £29.05 less than previously. This does not affect people who have already been assessed for ESA. New claimants under 25 will receive £57.90 throughout their claim.
From April 6, child tax credits will be restricted to two children. Those with two or more children will not be affected - the limit only applies to children born after April 6. There are also a number of exemptions, for example for twins. ● Taxes
From April 6, the personal allowance will rise from £11,000 to £11,500. It means residents will only pay tax on earnings over £11,500.
The higher rate tax threshold will also rise from £43,000 to £45,000. It means residents will only pay higher rate tax (40%) on earnings above £45,000.
Council tax in Halton will rise by 4% on 1 April. ● Pensions and savings
From April 6, people can access up a total £1,500 from defined contribution pensions in order to pay for financial advice, at a rate of £500 a year. Those aged 50 and over can access free, impartial pensions guidance, from Pension Wise.
The state pension will rise by 2.5% on April 6. For people who reached retirement after April 2016, this will rise to £159.55 a week and £122.30 for anyone who retired before April 2016.
From April 6, the amount residents can save in an ISA will rise from £15,240 to £20,000 a year, meaning more money can be saved without paying any tax on the interest earned.