BREAKING: The chancellor John Healey has unveiled sweeping changes which will affect families, pensioners and carers across the UK, and support the government’s pledge to halve violence against women and girls (VAWG) in his first Autumn Budget.
In a budget described as “breathing space from rising costs, with major action on energy, driving and everyday bills alongside support for wages, housing and high streets” the Chancellor outlined plans to extend parental pay support, launch a multi-million-pound misogyny prevention fund, increase state pensions and help first-time buyers get on the property ladder with the government’s Your First Home Scheme.
Amid swirling speculation over tightening budgets with little room for tax hikes and expensive borrowing costs, Healey laid out the Labour government’s plan for the fiscal year, raising hopes for the slashing of red tape for businesses and emphasising a strong focus on welfare for families and older generations.
Referring to the goverment’s pledge to tackle VAWG, the chancellor announced the first ever misogyny prevention fund, aimed at supporting women and girls and addressing misogyny.
Healey also declared a rise in state pensions by 3.9%, bringing the current annual payment up to £13,036.40 from April.
To counteract pensioners then being eligible to pay income tax due to the annual payment sitting above the threshold, the chancellor announced plans for a new tax allowance for low-income pensioners to ensure those who only receive a state pension are not caught out.
The pension triple lock will remain unchanged, he confirmed, however the government aims to revise the formula from 2030, replacing the permanent average earnings growth link with an adjusted system based on inflation or 2.5% as a way to “help fund social care and long-term fiscal sustainability”.
Parental support has also been a thought in this year’s Budget, as the chancellor pledged parental pay will be extended to more than 150,000 parents a year. This will include self-employed fathers and same-sex partners who previously would not have been entitled to this releif but will now be eligible for two weeks’ support worth up to £194 a week.
Addressing carers allowance in the Budget this afternoon, Healey said the government plans to scrap the earnings cliff edge in replacement for a new digital taper system, reforming the previous system where if carers were to earn a penny over the weekly earnings threshold, they would be stripped of their benefit.
Meanwhile on the property market front, the chancellor announced further details for the Your First Home Scheme.
The new equity loan scheme will support potential buyers by requiring a lower 2.5% deposit, alongside access to a 20% government-backed equity loan that will be initially interest free for a period. It will be funded with £4.7 billion of government backed lending, Healey announced, adding, “hope starts with a home, a route off the streets, a secure home to raise your kids, the keys to your own front door”.
Alongside this, it was previously confirmed pre-Budget that the threshold for eligibility for first-time buyers will be £110,000 combined income outside of London and £140,000 in the capital, to curb potential exclusion of couples that work within the public sector.
Lastly, in a bid to cut red tape and support businesses, the chancellor said the government will change regulations and cut “pointless paperwork” to save businesses up to £800 million, with a goal to cut regulation by 25% by the end of the parliamentary term.
