2024 Spring Budget – Key Points

DEBT RELIEF ORDER FEES WAIVED: To encourage more people to tackle debt problems, the government is waiving the £90 fee it costs to access a DRO from April 2024. This means setting up a DRO will be free if you’re eligible. From 28 June 2024, the amount of debt a DRO can include rises from £30,000 to £50,000 and you will be able to keep any motor vehicles worth up to £4,000.

NATIONAL INSURANCE CUTS: From 6 April 2024 the amount of national insurance paid by workers will fall by 2%.  This will result in more money in your pocket, but freezes to personal allowances could mean that some of this benefit is reduced if you move into higher tax brackets due to wage increases.

CHILD BENEFIT CHANGES: From 6 April 2024, the threshold at which Child Benefit starts to reduce will rise to £60,000 and the upper earnings limit will rise to £80,000 when Child Benefit will be no longer paid. If you stopped claiming Child Benefit because you or your partner’s earnings were too high, you could now qualify to apply for Child Benefit.

HOUSEHOLD SUPPORT FUND EXTENDED: The government has extended the Household Support Fund for another six months from April 2024, so will now be available until September 2024.

NO PLANS TO EXTEND COST OF LIVING PAYMENTS: There were no plans announced to extend Cost of Living payments in 2024 to 2025 but people on certain working age benefits, including Universal Credit, will see their payments rise by 6.7% between April and September 2024. That is about £470 extra a year on the average Universal Credit payment.

NEW BUDGETING ADVANCE TERMS: From December 2024 the repayment period on new Budgeting Advance loans taken out by claimants on Universal Credit to cover essential expenses will increase from 12 months to 24 months, making monthly payments lower.

For more information on all of the above, and other announcements made in the budget visit the Money Helper website.