The Autumn Budget 2024 brought a wave of positive changes aimed at supporting working individuals and families across the UK. From wage increases to improved savings opportunities, these measures are designed to ease financial burdens and foster economic stability. Here’s how the latest Budget announcements could benefit you.
1. A Savings Boost for Low Earners
For those looking to build a secure financial future, the Help to Save scheme is a game-changer. This initiative allows low earners to save up to £50 a month and receive a 50% government bonus at the end of years 2 and 4—potentially adding up to £1,200 in just four years.
The scheme, originally set to end in April 2025, has now been extended to April 2027, with eligibility expanded to include all Universal Credit claimants earning at least £1 a month. This broader accessibility ensures more workers can benefit, creating opportunities for long-term financial growth.
2. A Higher National Living Wage
From April 2025, the National Living Wage will rise to £12.21 per hour for employees aged 21 and over, representing a significant 6.7% increase from the current rate of £11.44.
Younger workers will also benefit, with the wage for 18- to 20-year-olds increasing to £10 per hour—a £1.40 boost. This marks a key step in the government’s plan to phase out discriminatory wage bands, moving towards a unified living wage for all adults.
For full-time workers, this wage increase means more financial freedom to cover living expenses and invest in their futures.
3. Fairer Deductions for Universal Credit Claimants
Universal Credit claimants burdened by debt repayments will see a significant change. The government is introducing a Fair Repayment Rate, capping debt-related deductions at 15% of the standard allowance, down from the previous 25%.
This change will benefit approximately 1.2 million households, allowing families to retain more of their income each month. On average, households are expected to be better off by over £420 annually, offering much-needed relief to those managing financial challenges.
What This Means for You
The measures outlined in the Autumn Budget 2024 showcase the government’s commitment to supporting working people. With higher wages, better savings opportunities, and fairer repayment structures, these changes can positively impact your financial well-being.
At The Infinity Group, we’re here to help businesses and individuals navigate these changes. From payroll management to financial planning, our team ensures that you’re always informed and prepared to make the most of new opportunities.
Let us help you navigate these changes—contact The Infinity Group today for expert guidance.