Austerity expert Martin Lewis has given his take on today’s Budget after being directly mentioned in the Chancellor’s speech.
Mr Lewis tweeted during the hour-long announcement: “I think I checked the name. #Budget2023 – this is the first.”
In a series of posts on social networks, the presenter highlighted changes to the pension and universal credit limits, as well as the expansion of childcare funding.
Mr Lewis asked whether those paying for childcare through tax credits would be better off moving to universal credit and whether it would be “harsher” for the unemployed following Jeremy Hunt’s announcement.
He said: “The Childcare Increase on Universal Credit DOES NOT apply to Inherited Benefits (ie tax credits). So the question is whether those paying for childcare with tax credits will ask to move to UC.
Martin Lewis is a financial expert
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He also claimed that two million jobseekers on Universal Credit would face tougher sanctions “if they don’t take a ‘suitable’ 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: “The maximum annual amount you can be awarded a pension is an increase (from April) from £40,000 to £60,000.”
A financial expert has highlighted changes to the maximum amount you can pay in your lifetime pension, which has been scrapped. In a video posted on Twitter, he said getting rid of benefits for life would “only affect the wealthy”.
However, he clarified that “this 25% tax-free lump sum does not apply”. The maximum you will receive will still remain at the current c rate. £268,000.
“POS [Mr Hunt] didn’t say but money to buy allowance is £4k to £10k. This is the amount you will receive after receiving part of the pension.
Moving on to energy prices, Mr Lewis thanked the government for delaying the 20% increase in the energy price guarantee, adding that “it’s effectively gone”.
In a letter to the chancellor, he previously said the rise in price guarantee – the state-subsidised energy tariff – would “further raise energy bills for almost every home in England, Scotland and Wales”.
Among the measures announced in the budget was the expansion of publicly funded child care aimed at boosting economic growth. Mr Hunt said he would add £11bn to the UK defense budget over the next five years.
He said the Office for Budget Responsibility (OBR) predicted Britain would no longer be in recession this year and that the government would “deliver on the Prime Minister’s priorities to halve inflation, reduce debt and deliver growth”.
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.
