There was good news in yesterday’s budget for working families as Chancellor George Osborne confirmed plans to rebate a fifth of childcare costs.
Single parents and families where both parents work will be eligible for vouchers worth up to £1,200 a year from autumn 2015, providing they earn less than £150,000 per person. Around 2.5 million families are expected to benefit from the scheme, which will cover care for children under 12 years old.
An additional £200 million will be provided to increase childcare support in Universal Credit from April 2016, while the income tax threshold was raised to £10,000 from April 2014, meaning an extra £705 in your pocket each year.
Families looking to buy a first home will be eligible for a new Help-to-Buy scheme from 1 April this year. This will offer people who have a five per cent deposit a 20 per cent interest free loan on a new-build home worth up to £600,000. The money is repaid when you eventually sell the property.
Meanwhile, the qualifying period for people in social housing looking to purchase their home under the Right-to-Buy scheme has gone down from five years to three, with tenants entitles to a discount of up to £100,000 on the value.
The cost of running a car should ease too, with the proposed 1.89p per litre increase in fuel duty due now scrapped, saving motorists an average of £7 each time they fill up the tank.
But those of you lucky enough to take a holiday abroad will face a further £2 per person in Air Passenger Duty, meaning a £67 charge on the lowest class of short-haul ticket and £94 for long-haul.
If you want to find out exactly how these changes and other budget measures will affect your own finances, the Money Advice Service has created a simple online tool for mums and dads to save you slaving over a calculator. Simply click here to try it out.
Find out what MFM readers think about the new childcare voucher changes.