Tuesday, June 22, 2010

The Budget: How it will affect the family

Here is a quick summary of the Budget measures/aims that directly relate to the family:
  • Families earning more than £40,000 will have their tax credits reduced.

  • Benefits, tax credits and public service pensions will increase in line with consumer prices rather than the retail price index.

  • Rise in the state pension age to 66 will be accelerated.

  • Child benefit will be frozen for the next three years.

  • Lone parents expected to look for work when their first child goes to school.

  • Housing benefit will be limited to a maximum of £400 per week for a four-bedroom house.

  • Two year council tax freeze.

  • The child element of child tax credit will rise by £150 above inflation next year.

  • Sure start maternity grant will go to the first child only.
(For a reaction as to what effect all of this will have on families, see this article in The Guardian.)

4 comments:

  1. it's a disaster for my client base. capped housing ben is probably the scariest (if they can find me a 4 bed property in the private sector in london for £400 i will go and live in it - £500 a week for a small 2bed here), but the 'recalculation'(reduction) in the inflation measure against which benefits will increase is the ticking bomb. people will also see how important child benefit is to family finances as the freeze works out. nice that the rich will still get it, of course.

    not sure how the maths will work on tax credits but those between the old level where you got anything meaningful and the new cap will be hit.

    not family-specific but what i heard about dla sounded typically tory and 'take up thy bed and walk'.

    it sounded like he was reading out the daily male. and are 'god bless our queen' and 'we love our troops' typical messages for a budget??? i only needed a reference to the sainted sam cam for a full house on my tory bingo card.

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  2. Yes, the housing benefit cut is obviously going to be hard, especially for those in London and other expensive areas.

    A Tory bingo card? Now there's an idea to make future budgets more interesting...

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  3. at least i could declare a full line on 'kill the poor'.

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