Budget 2014: what does it mean for families?

Budget

Last week's Budget from Chancellor George Osborne covers everything from energy bills and cash ISAs to the price of whisky and bingo tax. So how are the changes likely to affect your household? 

News for savers

If you're a saver – and especially if you have a young saver in the family – then there was plenty in the budget for you.

From July 1, the amount of money you can put away tax-free in a junior ISA has been upped to £4,000 (previously £3,720) – that's for savers up to the age of 18.

Child trust fund limits go up to £4,000, from £3,720, as well – also starting in July.

The government has also announced that it will merge stocks and shares and cash ISAs to create a 'super ISA' with a new overall limit of £15,000 from July 1. 

Flying high?

Off on a big trip Down Under or to another far-flung corner of the planet? All rates of duty on long-haul flights will be reduced to the same amount currently charged on flights to the United States. 

Buying your first home

Are you trying to get on the housing ladder? The Help to Buy equity scheme for new-build homes has been extended to 2020, which will see 200,000 new homes built. 

Childcare costs

Fewer women are unemployed than ever before, according to new figures. That's probably why Mr Osborne has unveiled a new scheme to offer a rebate on the cost of childcare worth up to £2,000 per child. The online scheme, for children up to 12, comes in from September 2015.

Parents set up an online account, allowing them to get a 20% rebate, per child, on the annual cost of childcare. So,if an annual childcare bill was £6,000, parents would pay £4,800 into the account, with the government adding £1,200.

Find out more about the Tax-Free Childcare scheme 

Taxes

The personal tax allowance will be raised to £10,500 – up £500 from its current level of £10,000 - in 2015-16.

The threshold for 40p income tax is to rise from £41,450 to £41,865 next month and by a further 1% to £42,285 next year.

There was a freeze on fuel duty, so no petrol pump hikes either. 

And finally - what news on the booze?

Taxes on ordinary cider and spirits are to be frozen. And if you are a beer drinker your pint is now 1p cheaper. Cheers!

 

Tell us what you think of the changes

 

All information accurate as of 19 March 2014.  This article is provided by the Money Advice Service.

Money Advice Service

 

Last updated: 3 days ago