Three ways the Budget will put more money into working people's pockets
dailyrecord.co.ukShortly after Chancellor Rachel Reeves delivered her first Budget in Parliament on October 30, the Treasury outlined three ways the announcement would put more money into the pockets of people in and out of work.
Their key areas are the living wage, expanding the Help to Save scheme for those on certain means-tested benefits and reducing deductions to Universal Credit payments.During the Autumn Budget, the Chancellor confirmed that the State Pension will rise by the earnings growth measure of the Triple Lock - 4.1 per cent - which will see those on the full, New State Pension receive an extra £471 during the 2025/26 financial year.
Ms Reeves confirmed that working age and disability benefits will increase by 1.7 per cent, the September Consumer Price Index (CPI) inflation rate figure - the The Treasury also confirmed that Child Benefit and Tax Credits will rise by 1.7 per cent.The UK Government also announced no changes to income tax rates, however, Scotland’s tax bands are set by the Scottish Government so we won’t know until the Scottish Budget next month if those are changing.As promised in its election manifesto, Labour will not increase National Insurance or VAT, however, employer National Insurance will go up and could result in smaller pay rises next year.The Help to Save scheme has been extended and widened.
The scheme offers people on Universal Credit a savings account where they can save a maximum of £50 a month for four years and receive a 50 per cent Government boost at the end of year two and year four.
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