Jeremy Hunt to announce first budget spring today
The Chancellor, Jeremy Hunt will announce his first spring budget today. Here we look at what is expected.
Childcare
Arguably the biggest potential announcement is regarding childcare. Jeremy Hunt wants to get people back to work, and with sky high childcare bills holding many back, the plan is to introduce 30 hours of free childcare for all one and two-year-old, as well as a boost for three-year-olds. This would cover anyone with a child in that age group, and not just people on Universal Credit.
The move is hoped to get more work-age parents back to the office, which in turn would lead to higher employment and more money in family’s pockets.
Pensions
A rise in tax free savings is expected to be announced, which is hoped to tackle many professionals retiring early. The lifetime allowance (LTA) is expected to rise to £1.8m up from £1,073,100. The annual allowance – which is the most a worker can save before paying tax – is due to rise to £60k from £40k.
It is hoped that by raising the LTA allowance that more NHS doctors and other professionals will be tempted out of retirement.
Energy subsidy
Hunt is expected to announce an extension of the energy price guarantee until July. The price guarantee was due to expire in March, however, after a fall in wholesale prices since late December, which has reduced the cost to the treasury, Hunt has been given more room for maneuver and the ability to help households for an additional three months.
Public amenities
England’s struggling leisure centres and swimming pools are to be offered a financial lifeline, which Is great news for local communities, with the creation of a £63million fund. Since 2010, England las lost nearly 400 swimming pools and leisure centres, some of which were a lot of family’s only available option for keeping fit and getting their children swimming. This fund will help ease the cost pressures on leisure centres with a one-year donation managed by Sport England.