Autumn Budget 2018: What's changing in April?

In October the Chancellor, Philip Hammond, delivered the 2018 Autumn Budget. These changes take effect in April 2019, 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 basic State Pension and new State Pension increase by 2.6% from 6 April 2019, a cash increase of £3.25 a week and £4.25 a week respectively.

State Pension age

• From November 2018 the state pension age will be 65 for both men and women. From 2019, the State Pension age will gradually 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. 

How will my benefits be affected?

Working-age benefits

• 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

• Over £1 billion has been set aside over five years to fund top-up payments from those who have been moved onto Universal Credit from other benefits. 

How will my private pension be affected?

• Lifetime allowance for pensions will increase in line with the Consumer Price Index (CPI), rising to £1,055,000 for 2019-20. 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 £11,850 to £12,500 on 6 April 2019.
• Basic rate tax will be still payable on taxable income up to £34,500 and the higher rate threshold will be increased from £46,350 to £50,000.

How will my savings be affected?

• The ISA annual subscription limit for 2019-20 will remain unchanged at £20,000.