Budget 18/19: What's changing this April?
Last November the Chancellor, Philip Hammond, delivered the Budget for 2018/19. These changes take effect in April 2018, and we’ve picked out the measures which are most likely to affect people over pension age now and in the near future.
How will my State Pension be affected?
- The old State Pension and new State Pension increase by 3% from 9 April 2018, a cash increase of £3.65 a week and £4.80 a week respectively.
State Pension age
- There are no announced changes to State Pension age. The government made an announcement in summer 2018 outlining changes for 2017-18.
- The current State Pension age for men is 65 and it is gradually increasing for women. In April 2018, it is 64 and six months and in November 2018 it will be 65. From 2019, the State Pension age will increase for both men and women to reach 66 by October 2020. State Pension age will be increasing from 66 to 67 between 2026 and 2028.
- There will also be reviews every 5 years after that to look at State Pension age.
Check your State Pension age
Use the Government's State Pension calculator to find out your State Pension age.
How will my benefits be affected?
- The standard rate of Pension Credit Guarantee Credit increases by £3.65 a week for a single person and by £5.55 a week for couples from 9 April 2018.
- Pension Credit Savings Credit increases by 20p a week for a single person and by 9p a week for couples from 9 April 2018.
- The majority of working-age benefits, such as Jobseeker’s Allowance, are unchanged. They are frozen at their 2016–17 levels for 4 years following the Welfare Reform and Work Act 2016.
- Universal Credit is a new means-tested benefit for working-age people. It’s gradually being introduced nationally and will replace income-based Jobseeker’s Allowance, income-related employment and support allowance, Housing Benefit, Income Support, Working Tax Credit and Child Tax Credit. The roll-out will be complete by December 2018.
- A number of measures have been announced to reduce the wait time for the first payment.
- From April 2018, if you already receive Housing Benefit you will continue to receive this for the first two weeks of your Universal Credit claim.
What benefits can you claim?
Do you know what benefits you are entitled to? Find out exactly what you are owed, quickly and easily, using Age UK's benefits calculator.
How will my private pension be affected?
- Lifetime allowance for pensions will increase in line with the Consumer Price Index (CPI), rising to £1,030,000 for 2018-19. This is a limit on the value of payouts from your pension schemes that can be made without triggering an extra tax charge. These payouts could be lump sums or retirement income.
What are the changes to tax allowances and thresholds?
- The amount of income you can earn before you pay tax - the personal allowance - increases from £11,500 to £11,850 on 6 April 2018.
- Basic rate tax will be payable on taxable income up to £34,500 and the higher rate threshold will be set at £46,350.
- The Marriage Allowance allows you to transfer up to 10% of your unused personal allowance to your partner, reducing your tax bill by up to £230 a year in 2018-19. The government will now allow claims in cases where a partner died before the claim was made. These claims can be backdated by up to 4 years.
How will my savings be affected?
- The ISA annual subscription limit for 2018-19 will remain unchanged at £20,000.
How is council tax changing?
- Local authorities will be able to increase the council tax premium on empty homes from 50% to 100%. This means you could pay up to 200% of the council tax on that property.
For more information call Age UK on 0800 055 6112