Quick Summary
- One of the most notable changes is the increase in the child benefit.
- Ofgem, the government regulator for gas and electricity markets in the UK, has confirmed that its price cap will fall to £1,690 from £1,928 on April 1 for a typical household paying by direct debit.
- The amount of NI that self-employed workers pay is also going down from 9% to 6% with a 1p fall announced in the autumn statement and a further 2p cut confirmed in the spring budget.
Introduction
April 2024 has been a significant month for financial changes in the UK, with several new measures and rates coming into effect. These changes, ranging from tax hikes to price rises, have been dubbed as “Awful April”. However, amidst these challenges, there are also some positive shifts that could potentially benefit households. This article aims to provide a comprehensive overview of these key changes and their potential impact on your finances.
Child Benefit Boost
One of the most notable changes is the increase in the child benefit. The high income child benefit charge threshold is rising from £50,000 to £60,000 from April 6. This means that parents can earn up to £60,000 without having their child benefit reduced. For every £200 earned over £60,000, a 1% charge will be applied to the child benefit. The amount of child benefit is also rising, from £24 to £25.60 for the eldest or only child and from £15.90 to £16.95 for younger children.
Energy Bills Coming Down
In a welcome relief for households, energy bills are set to decrease. Ofgem, the government regulator for gas and electricity markets in the UK, has confirmed that its price cap will fall to £1,690 from £1,928 on April 1 for a typical household paying by direct debit. This £238 drop will be welcomed by households whose gas and electricity bills have soared over the past few years.
National Insurance Cut
The rate of national insurance (NI) will drop from 10% to 8% from April 6 for employed workers. This is the second cut this year. The amount of NI that self-employed workers pay is also going down from 9% to 6% with a 1p fall announced in the autumn statement and a further 2p cut confirmed in the spring budget. Class 2 contributions are also being scrapped in an effort to simplify the way self-employed people pay tax.
Higher Council Tax
Council tax is set to increase in April 2024. The exact amount of the increase will vary depending on the local council. This rise in council tax could put additional financial pressure on households.
Water Bills Rising
Water bills are also expected to rise in April 2024. The exact increase will depend on the water company and the region. This is another change that could potentially strain household budgets.
Broadband and Mobile Hikes
Broadband and mobile prices are set to increase in April 2024. The exact amount of the increase will depend on the service provider. This could potentially impact households that rely heavily on these services.
Help with Childcare Costs
The government is also introducing measures to help with childcare costs. More details about these measures are expected to be announced soon.
State Pension Rise
For retirees, the state pension will see its second-highest rise on record1 This increase could potentially benefit millions of pensioners.
Conclusion
April 2024 brings a mix of financial changes, some of which could potentially strain household budgets, while others could provide some relief. It’s important for households to stay informed about these changes and plan their finances accordingly. As always, if you’re unsure about how these changes might affect you, it’s a good idea to seek advice from a financial advisor.
