The latest budget announcement has introduced changes that will potentially put more money into consumers’ pockets, according to financial expert Martin Lewis. The budget features a significant cut in National Insurance, dropping 4% from January to April, and an adjustment to the child benefit system. The latter is a response to the unfairness faced by single-parent and single-earner families since 2013, which Martin Lewis has been actively campaigning against. The threshold for losing child benefits has been raised to £60,000 with complete loss now at £80,000, a move that should remedy the unfairness by April 2026. Other topics discussed include the lack of changes to the Lifetime ISA regime, which Lewis hoped would be adjusted to reflect the rise in house prices.
National Insurance has been cut by 4%, which raises the take-home pay of many workers.
Changes to child benefit address the unfairness towards single-parent and single-earner families, with the threshold for losing benefits raised to £60,000 and complete loss at £80,000.
Martin Lewis had campaigned for changes in the child benefit system and had discussed this issue with the chancellor prior to the budget.
There was a disappointment regarding the Lifetime ISA (LISA) as the threshold for first-time homebuyers was not increased despite a rise in house prices.
The budget did not address some issues like the LISA penalty for first-time buyers in high-cost areas, although Lewis remains hopeful for future changes.
Public reaction to the budget has been mixed, with many people expressing pessimism and stating it was worse than expected.
The budget’s impact on public sentiment, especially regarding public services like the NHS and rail systems, remains to be seen.
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