Rates and the Economy news in 2024
27 stories, newest first.
- December 2024
Median UK household income after taxes and benefits fell 4.7% in FYE 2023
The Office for National Statistics says median UK household income after all taxes and benefits fell by 4.7 per cent in real terms in the financial year ending 2023, the third consecutive annual fall.
- November 2024
Annual CPI inflation rises to 2.3 per cent in October 2024
Annual CPI inflation rose to 2.3 per cent in October 2024 from 1.7 per cent in September, a reversal attributed in part to the recent increase in the Ofgem energy price cap.
Autumn Budget 2024 extends Making Tax Digital for Income Tax to those with qualifying income over £20,000
The Autumn Budget 2024 extended Making Tax Digital for Income Tax to sole traders and landlords with qualifying income over £20,000, with the change to be introduced by the end of this Parliament.
- October 2024
Autumn Budget raises employer National Insurance contributions
The Autumn Budget of 30 October 2024 raised employer National Insurance contributions by 1.2 percentage points, cut the threshold at which employers start paying and increased the Employment Allowance.
Budget confirms working-age benefits uprating of 1.7%
The Chancellor's Budget statement on 30 October 2024 confirmed working-age benefits will rise by 1.7% in April, less than half the 4.1% increase for pensioners.
Labour delivers first Budget in 14 years, first delivered by a woman
Rachel Reeves delivered Labour's first Budget in 14 years on 30 October 2024, the first ever delivered by a female chancellor, with employer National Insurance rises and a £40 billion overall tax increase.
Government accepts Low Pay Commission recommendations for April 2025 minimum wage rates
The Government has accepted the Low Pay Commission's recommended minimum wage rates for April 2025, raising the National Living Wage for workers aged 21 and over to £12.21 an hour.
Autumn Budget unveiled £40bn of tax rises and froze IHT thresholds until 2030
Rachel Reeves' Autumn Budget set out £40bn of tax rises and froze inheritance tax thresholds until 2030, with the next fiscal statement due on 26 March.
- September 2024
2024 MIS report published with first full rebase of all household budgets in the same year
The Centre for Research in Social Policy at Loughborough University has published the 2024 Minimum Income Standard, rebasing budgets for every household type in the same year for the first time since 2008.
Working-age benefits to rise 1.7% and pension-age benefits 4.1% from April 2025
Working-age benefits will rise by 1.7% and pension-age benefits by 4.1% from April 2025, the Budget confirmed, while Local Housing Allowance and the benefit cap are frozen again.
- August 2024
ONS releases Household Costs Indices for April to June 2024
The Office for National Statistics said the all-households Household Costs Index annual rate fell to 2.5% in the year to June 2024, down from 4.5% in March 2024.
- July 2024
Mortgage borrowing by individuals reaches highest net level since November 2022
Individuals borrowed a net £2.8 billion of mortgage debt in July 2024, the highest monthly figure since November 2022, according to Bank of England money and credit statistics.
- May 2024
Household Costs Indices bulletin for January to March 2024 published
The Office for National Statistics said UK household costs rose 4.4% in the year to March 2024, with mortgagor owner occupiers facing the highest rate and outright owners the lowest.
Inflation falls to the Bank of England's 2.0% target
UK inflation fell to 2.0% in May 2024, the Bank of England's target, for the first time since July 2021, after peaking at 11.1% in October 2022.
Which? reports growing popularity of 40-year marathon mortgages
Which? reports that longer mortgage terms have grown more popular as first-time buyers respond to higher rates, with 20% of first-time buyers taking terms of 35 years or more by the time the base rate peaked.
- April 2024
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.
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.
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.
Minimum wage equalised for 21- and 22-year-olds
From April 2024 the minimum wage for 21 and 22 year olds was raised to the same rate as older workers, ending a lower pay floor for that age group.
Minimum wage hourly pay to rise by 10 per cent in April
The Resolution Foundation says minimum wage hourly pay will rise by 10 per cent in April, as housing costs drive the squeeze on household finances.
National Living Wage age threshold lowered from 23 to 21
The age threshold for the National Living Wage was lowered from 23 to 21 in April 2024, the second reduction in three years, extending the adult minimum wage rate to younger workers.
Working age benefits to be uprated by September CPI of 6.7%
Working age benefits will rise by 6.7% from April 2024, the September CPI rate, while pension age benefits rise by 8.5% under the triple lock and the Local Housing Allowance freeze ends.
- March 2024
Resolution Foundation research finds UK consumer debt at lowest level since at least 1999
Resolution Foundation research published on 3 March 2024 finds UK consumer debt at its lowest level since at least 1999, down from 23% of household disposable incomes in the mid-2000s to 13%.
Energy Price Guarantee ends in March 2024
The Energy Price Guarantee, which capped domestic energy bills from October 2022, ended in March 2024 after falls in the Ofgem price cap meant it was no longer needed to set maximum prices.
Private rental inflation peaked at 9.1%
Private rental inflation peaked at 9.1% in March 2024 and averaged 8.7% across the year, the Joseph Rowntree Foundation has said, with rents up nearly 8% since the last general election.
- February 2024
Improved private rental and second-hand cars indices introduced into the HCIs
The Office for National Statistics introduced improved private rental and second-hand cars indices into the Household Costs Indices in February 2024, alongside a correction to earlier CPI comparisons.