When Phillip Hammond announced the Autumn budget, there was a lot to take in. There will be increased funding for the NHS, investment in maths and science in schools, and millions of pounds allocated to funding courses in construction skills, among the many announcements made!
We’ve picked out some of the news that will have an impact on number of us as we go about our daily lives. Check out our highlights:
National Living Wage
The living wage is going up again! From April 2018, the living wage for those aged 25 and over will be £7.83, up from £7.50. If you work full-time hours, it’ll make an annual difference of over £600 to you.
Minimum wage for those under 25 will also increase from April 2018. 21-24 year-olds will be entitled to a minimum wage of £7.38 an hour, while 18-20 year-olds will earn a minimum of £5.90.
Personal Allowance
From April 2018, our tax-free personal allowance will be £11,850. Remember, your personal allowance is the amount you can earn before you have to pay income tax. This year’s increase means that our personal allowance is now £1,850 more per year than it was just three years ago in the 2014/15 tax year. As the increase is in line with inflation, many people won’t feel much of the benefit. Any increase is still nice to have, though!
Transport
There were a few announcements about transport in the Autumn budget. The government have pledged to continue the freeze on fuel duty for the eighth year running. Fuel duty is a tax that you pay on the petrol or diesel you buy to run your car and makes up the bulk of the cost you pay per litre. By maintaining the freeze on fuel duty, most drivers will be able to hang onto £160 that they would have lost over the course of a year had the tax gone up.
For the non-drivers among us, there was good news for the trains in the budget, too. The government are working with the rail industry to introduce a new railcard for 26-30 year olds, extending rail discounts for those who previously had a 16-25 railcard. It’s predicted the new railcard will be introduced in spring 2018, so keep your eyes peeled!
There’s also going to be £1.7 billion worth of investment in public transport. Most of the budget has been allocated to improving train services, completing rail projects that are already underway and renovating stations. With rail demand increasing across the country, this investment should help enormously.
Stamp duty
The biggest announcement of the Autumn budget, and the most meaningful for many, though, was Phillip Hammond’s news about stamp duty. In a move to help more first-time buyers get onto the property ladder, the government has abolished stamp duty on houses up to £300,000 for those buying their first homes. The amount payable on homes up to £500,000 has also been decreased for first-time buyers. The news will make a big difference to many saving hard for a deposit!
Read more: What is stamp duty and does abolishing it help first time buyers?
