Three ways the Budget will put more money in working people’s pockets
We are raising the living wage, expanding the Help to Save scheme and limiting reductions to Universal Credit awards.
Working people are the lifeblood of our economy. The government is not increasing the basic, higher or additional rates of Income Tax, National Insurance, or VAT.
Here are just some of the measures announced at the Autumn Budget 2024 that will help put more money into your pocket.
1. Savings boost from the government for low earners
The Help to Save scheme has been extended and widened. The scheme offers lower earners a savings account where they can save a maximum of £50 a month for 4 years and receive a 50% government boost at the end of year 2 and year 4. This helps workers kickstart a lifelong savings habit and offers up to £1,200 over the 4 years.
The scheme was due to end in April 2025 but has been extended by 2 years until April 2027. Eligibility for the scheme will widen from April 2025. It will be open to all working Universal Credit claimants earning at least £1 a month.
2. Increased National Living Wage
In her statement, the Chancellor announced that from 1 April 2025, the National Living Wage will increase from £11.44 to £12.21 an hour for employees aged 21 and over. That’s an increase of 6.7% from 2024.
For 18 to 20 year olds, it will increase by £1.40 an hour, to £10.00 an hour. This is the first step towards the government’s plan to remove discriminatory age bands and deliver a genuine living wage that all adults can benefit from.
3. Capping how much Universal Credit can be taken for debt repayment
The government is creating a new Fair Repayment Rate which caps deductions made through Universal Credit at 15% of the standard allowance. Before this Budget, it was 25%.
This means approximately 1.2 million households will keep more of their Universal Credit payment each month, with households expected to be better off by an average of over £420 a year.
Other financial support available
These are just some of the ways the government is protecting working people. The Autumn Budget 2024 also includes further support for pensioners, those in crisis and those struggling most with the cost of essentials. Read the Budget in full to find out more.
Answer a few questions to find out what support you might be able to get to help with living costs. Check benefits and financial support you can get.