Financial analyst Martin Lewis reacts to the government’s budget announced by Chancellor Jeremy Hunt today.
The money-saving expert highlighted changes to the pension and Universal Credit limits, as well as the expansion of childcare funding announced in the Budget today.
Mr Lewis, who was name-checked in the Budget, said in a series of tweets published today: “The childcare increase in Universal Credit will NOT apply to previous benefits (ie tax credits). So the question is whether those paying for a child under the tax credit will be asked to move to UC.
He also claimed that two million jobseekers on Universal Credit would face tougher sanctions “if they don’t take a ‘proper’ job”. So it’s going to be harder for people who don’t work and think the government can work. “
Mr Lewis also highlighted changes to pension caps. He said: “Increasing the maximum annual amount you can award a pension (from April I believe) from £40,000 to £60,000.”
The financial expert also touched on changes to the maximum lifetime pension that is withdrawn today.
However, Mr Lewis explained that “this does not apply to the 25% tax-free lump sum”. The maximum you will receive will still remain at the current c rate. £268,000′.
He continued: “EXCLUDINGLY, he didn’t say, but the buy-to-let allowance is between £4k and £10k. This is the amount you will receive after receiving part of the pension.
The financial expert also thanked the government for delaying the 20% rise in energy prices, which he said meant “it’s practically gone”.
In a letter to the chancellor, Mr Lewis said a rise in energy price guarantees – the state-subsidised energy tariff – would “further increase energy bills for almost every home in England, Scotland and Wales”.
Among the measures announced in today’s budget was a major expansion of publicly funded childcare aimed at boosting economic growth.
The chancellor also said he would add £11 billion to Britain’s defense budget over the next five years and extended support for the energy bill by another three months.
According to the Chancellor, the Office for Budget Responsibility (OBR) now predicts that the UK will not be in recession this year and that the government will “deliver on the Prime Minister’s priorities to halve inflation, reduce debt and keep the economy growing”.
The OBR expects UK inflation to fall to 2.9% by the end of 2023 from 10.7% in the final quarter of last year, despite “continued global volatility”, Mr Hunt said.