The Budget at-a-glance – what families need to know

Yesterday, the emergency Budget was revealed. Here’s what us parents and parent-to-be can expect.

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Yesterday, chancellor George Osborne’s emergency Budget was announced. But what does it all mean for you, your family or your bump? Here are the key points…

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Pregnancy

  • The £190 pregnancy grant will be stopped from April 2011
  • The Sure Start maternity grant will be limited to your first child only (currently this grant is for those on a low income, and is a one-off payment of £500 for each baby you have)
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Families

  • Child benefits will be frozen for three years
  • The joint income threshold for child tax credits will be lower to £40,000
  • Low-income families – you’ll get greater child tax credits. The amount for each child will go up by £150 next year (this is a rise that’s above inflation)
  • Single parents – you’ll be expected to look for work as soon as your youngest child starts school (right now, this is expected only once your youngest child is 10)
  • VAT will rise from 17.5% to 20% from 4th January 2011. It’s been estimated by some that this will cost the “average” family an extra £425 a year.
  • Personal income tax allowance will go up by £1,000 to £7,475 in April 2011

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