Budget Changes: What's in it for You?

The recent budget announcement has brought several changes that could impact your wallet. Let's break it down in simple terms. First off, taxes might be a bit tougher. The income tax bands, which decide how much tax you pay, won't increase with inflation until 2031. This means if you get a pay raise, you might end up paying more in taxes than you expected. In Scotland, things are a bit different because they have their own tax rates. If you drive an electric or hybrid car, get ready for some changes. Starting in 2028, you'll be paying to use the roads. The exact amount will depend on how many miles you drive. But don't worry, fuel duty will stay the same for the next five months and then go up slowly after that. Good news for workers! The minimum wage is going up. If you're 21 or older, you'll now earn £12. 71 an hour. For 18 to 20-year-olds, it's £10. 85 an hour. And if you're 16 or 17, the minimum wage is now £8 an hour. Apprentices also get a raise to £8 an hour. Homeowners with properties worth £2 million or more in England will see a new council tax surcharge starting in 2028. The amount you pay will depend on how much your home is worth. This change will affect about 100, 000 properties, mostly in London and the southeast. Train fares in England are staying the same until March 2027. This is the first time in 30 years that fares haven't gone up. The bus fare cap of £3 for a single journey is also staying until March 2027. If you save money in a cash Isa, you can now only put in £12, 000 a year if you're under 65. The government wants people to invest more, even though it comes with more risk. The Help to Save scheme for low-income families will also continue until 2028. Big families will get some relief. Starting next April, the two-child cap on universal credit and tax credits will be scrapped. This means parents with three or more children will get more financial support. If you use a salary sacrifice scheme for your pension, there's a new cap of £2, 000 a year starting in 2029. This might make some people less interested in saving for their pension. Most benefits and the state pension will go up. There are also changes to prescription charges and Motability schemes.