Money news: page 29
- April 2024
Employee and self-employed NICs main rates cut as of April 2024
The main rate of employee National Insurance fell from 10% to 8% and the main rate for the self-employed fell from 9% to 6% on 6 April 2024, under an Act that received Royal Assent on 20 March 2024.
Guidance updated with rates effective from 8 April 2024
Government guidance pages for the State Pension, Pension Credit and New Style Employment and Support Allowance were updated with benefit rates effective from 8 April 2024, the April uprating date for that year.
High Income Child Benefit Charge threshold increases to £60,000
The High Income Child Benefit Charge threshold rose from £50,000 to £60,000 on 6 April 2024, with the taper halved so the charge reaches the full Child Benefit amount at £80,000.
New ISA year begins with £20,000 allowance as Resolution Foundation publishes Spotlight on ISA costs and effectiveness
The Resolution Foundation marks the start of the new ISA year with analysis putting the cost of ISA tax relief at £6.7 billion in 2023-24 and questioning whether the policy raises saving.
ISA account opening age harmonised at 18 with transitional protections for younger investors
The Individual Savings Account (Amendment) Regulations 2024 raised the minimum age for holding a cash ISA from 16 to 18 from 6 April 2024, with transitional protection for existing younger holders.
Pensions lifetime allowance to be abolished from 6 April 2024
The pensions lifetime allowance was abolished from 6 April 2024 under the Finance Act 2024, removing the cap on total pension savings that could be built up without an extra tax charge.
15 hours free childcare for working parents of 2-year-olds from April 2024
Working parents of two-year-olds in England can access 15 hours a week of government-funded childcare from 1 April 2024, the first stage of an expansion reaching 30 hours by September 2025.
Administrative Earnings Threshold rises to £743 and £1,189 per month
The Administrative Earnings Threshold for Universal Credit rose to £743 a month for single people and £1,189 a month for couples in April 2024, with a further increase following in May.
Around 429,000 workers start repaying student loans this April
Around 429,000 workers begin repaying student loans from April 2024, with Plan 2 graduates facing a 7.8% interest cap and a £27,295 earnings threshold before deductions.
Attendance Allowance rates for April 2024 to March 2025
Attendance Allowance pays £72.65 a week at the lower rate and £108.55 a week at the higher rate from April 2024 to March 2025, for people over State Pension age who need help because of disability.
Basic rate income tax cut proposed from April 2024
The Chancellor announced a 1p cut in the basic rate of income tax to take effect from April 2024, alongside a £3,000 rise in the National Insurance threshold from July 2022.
Benefit rates to rise by 6.7% and State Pension and Pension Credit rates by 8.5%
Most benefit rates will rise by 6.7% and State Pension and Pension Credit rates by 8.5% from April 2024, subject to Parliamentary approval, the Government has confirmed.
Benefits uprated by 6.7% in April 2024
Benefits rose by 6.7 per cent in April 2024 under the annual uprating, but Council Tax, water and broadband prices also increased that month, according to a living standards study.
Canada Life research finds UK workers overpaid £5.8bn due to wrong tax codes
Canada Life research estimates UK workers overpaid £5.8bn to HMRC because they were on the wrong tax code, with almost a third of adults finding an error after checking.
Deadline for ending legacy benefits brought forward to March 2026
The deadline for moving remaining legacy benefit claimants to universal credit was brought forward to March 2026, with payments due to end by 31 March 2026.
DMCC Act 2024 comes into force
The Digital Markets, Competition and Consumers Act 2024, in force since April 2024, has revoked the EU derived 2015 ADR Regulations, opening the way for secondary legislation on consumer dispute resolution standards.
FCA confirms final rules in PS24/2 with just over 6 months implementation period
The Financial Conduct Authority has published final rules on protecting borrowers in financial difficulty, confirming they take effect on 4 November 2024 with just over six months for firms to prepare.
FCA to consult on value for money framework rules in spring 2024
The Financial Conduct Authority has signalled that detailed rules for a new value for money framework for defined contribution workplace pensions will be consulted on in spring 2024.
FOS award limits increase from 1 April 2024
The Financial Ombudsman Service award limits rose on 1 April 2024 to £430,000 for complaints about acts or omissions from 1 April 2019, and £195,000 for earlier ones.
Free childcare expansion to be rolled out in phases from April 2024
A £4bn expansion of free childcare, giving an extra 30 hours a week to parents of one and two year olds, will be rolled out in phases from April 2024, Toynbee Hall has said.
Frozen Income Tax and National Insurance thresholds to take effect
Freezing Income Tax and National Insurance thresholds rather than uprating them by 6.7 per cent will raise £8 billion and cost basic rate employees £270, the Resolution Foundation says.
Further 2p cut in employee National Insurance contributions takes effect
A further 2p cut in employee National Insurance contributions, announced in the March budget, took effect in April, giving basic rate taxpayers an extra £606 a year from the combined cuts.
Household Support Fund extended to September 2024
The Household Support Fund, which pays for local food and energy help, has been extended for six months to September 2024 with an extra £500 million split between councils across the UK.
Inflation-linked benefits uprated by 6.7% and State Pension by 8.5%
Inflation-linked Department for Work and Pensions benefits rose by 6.7% in April 2024, while the basic and new State Pension increased by 8.5% for 2024/25.
JROC publishes recommendations for next phase of open banking
The Joint Regulatory Oversight Committee has published recommendations on the design of a future open banking entity, covering structure, governance and funding, and proposals for a new interim body.
New law gives greater protection to pregnant women and new parents facing redundancy
The Protection from Redundancy (Pregnancy and Family Leave) Act 2023 gives pregnant employees and those recently returned from family leave priority status for suitable alternative roles from April 2024.
LHA re-pegged to 30th percentile of local rents after four-year freeze
Local Housing Allowance was re-pegged to the 30th percentile of local rents in April 2024, four years after a freeze, cutting the share of Universal Credit families whose housing costs were not fully covered.
Local Housing Allowance freeze to be lifted
Local Housing Allowance maximum amounts were raised to the 30th percentile of local market rents from April 2024, ending a freeze on rates that had been in place since 2020.
Local Housing Allowance unfrozen and raised to 30th percentile of rents
Local Housing Allowance has been unfrozen and raised to the 30th percentile of rents, the Autumn Statement confirmed, alongside benefit uprating of 6.7% and state pension uprating of 8.5% from April 2024.
Managed migration opens to Tax Credits claimants with Housing Benefit
Tax Credit claimants who also receive Housing Benefit began receiving Universal Credit migration notices from April 2024, the first group in a wider timetable that runs through to 2028/29.