The Autumn Statement – and what it means for you

The Chancellor this week delivered his Autumn Statement detailing financial plans and an update on the UK’s economy. Just some of what he announced may affect you. This includes:

  • Planned Tax Credit cuts, which were due to begin in April 2016, have been abandoned. These changes were predicted to hit the most financially vulnerable the hardest. Scrapping this was down to the Chancellor having more money in the budget than expected. The introduction of Universal Credit, which replaces the existing Tax Credits setup, is expected to see some families being worse off once it is fully up and running by 2017.
  • Restrictions on benefits being limited to the first two children are to go ahead from April 2017. Meaning you couldn’t claim benefits for a third child.
  • Housing benefit and pension credit payments will be stopped if you are out the UK for more than a month.
  • A rise in stamp duty for people purchasing a buy-to-let property. As a result this could see future landlords pass on costs to tenants through increased rents.
  • New 30-hour free childcare subsidy for parents of three-and four-year-olds to be limited to those working more than 16 hours a week (pilot in 2016 with full roll out anticipated in 2017).
  • Increased council tax. Councils will be able to add 2% on to council tax bills to fund social care in the local area. So if you currently pay £1070 a year you’d expect to pay an extra £21 per year, or £1.75 per month. If you pay £1450 per year then a 2% increase would mean having to spend an extra £29 per year.

In addition to this was a further note pointing to jobcentres being re-located in to local authority buildings as part of a cost cutting exercise. So you may need to look out for changes if your local jobcentre is going to re-locate now or in the very near future.

If you’re currently worried about your finances, have unsecured debts from personal borrowing and would like to speak confidentially to an advisor who can talk to you about the benefits and considerations of a range of debt solutions and personal insolvency solutions, then please get in touch by calling 0800 048 1764. You can also visit dev.harringtonbrooks.co.uk to request a call back at a time to suit you. By requesting a call, you are under no obligation to use our services. Harrington Brooks provide solutions to customers living in England, Scotland and Wales.

Should you choose to undertake a plan or arrangement, there may be consequences to consider, including restrictions on future expenditure, lending and on your ability to obtain further or future credit. Fees, terms and conditions apply. For further information and advice please visit dev.harringtonbrooks.co.uk.

The services that we provide may be available at no cost from other government and charity based providers. Further information can be obtained from the Money Advice Service at https://www.moneyadviceservice.org.uk/en/articles/where-to-go-to-get-free-debt-advice