How will the 2013 budget affect your family?

Working parents will benefit from help with the cost of childcare but the price of your summer holiday abroad is set to rise

how-will-the-2013-budget-affect-your-family_26989

There was good news in yesterday’s budget for working families as Chancellor George Osborne confirmed plans to rebate a fifth of childcare costs.

Advertisement

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.

Advertisement

Read more…

Comments ()

Please read our Chat guidelines.