Spring Budget predictions – and how new policies will affect parents
Amber Middleton
Content writerHuge change to Child Benefit expected to be announced when Chancellor, Jeremy Hunt makes his speech in March, plus Household Support Fund, tax and more
There are just two weeks to go until the Chancellor announces his Spring Budget.
This is where Jeremy Hunt will give updates on any financial changes coming this year.
Last year's Budget saw the expansion of the government's 'free childcare' scheme which is set to roll out imminently. While the previous year, cost of living payments were first announced to help households amid the cost of living crisis.
We are told to expect more financial changes that will affect parents in the upcoming Spring Statement – from new Child Benefit rules to tax reductions.
While it hasn't yet been announced exactly what the Chancellor will announce in his Spring Budget, there have been some predictions and we've compiled a few that could be coming in his speech on 6 March that could help parents across the UK.
- Will the Household Support Fund be extended in the spring Budget
- Will' 'unfair' child benefit rule be scrapped in the spring Budget?
- Universal Credit to increase
- Primark shoppers 'need' new 'perfect' travel bag
- Payments worth £4k available for low-income families
- Argos launches half-term toy sale with deals on more than 500 products
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Changes to Child Benefit
One announcement Mr Hunt is thought to be making is to abolish the High Income Child Benefit (HICB) charge.
This is the charge that parents have to pay if either claim child benefit and earn over £50,000 individually.
If this affects you, you must pay back 1% for every £100 over £50,000 you earn, and if you hit £60,000, you have to pay back all of your Child Benefit via a self-assessment.
This rule only affects parents if one earns over £50,000, which has caused single-income families to find this rule unfair because while 2 parents can earn a joint income of £98,000 (if they each earn £49,000), and not face the charge, a single parent would be subject to the charge once they earn over £50,000.
Martin Lewis has been campaigning for a change in the law and told the chancellor that the Child Benefit charge was his show's viewers's biggest concern 'by a mile'.
Mr Hunt replied: 'We look at those thresholds every year in budgets and we will continue to do that.
'There is a very big distortion in the marginal rate of tax that people earn and I fully accept there is an unfairness with what happens with dual income families.'
An extension of the Household Support Fund
It's possible the chancellor could extend the Household Support Fund (HSF).
This is a scheme funded by the DWP where local councils can apply for portions of the Fund that can then be spent on their residents, amid the cost of living crisis.
Initially introduced in 2021, the government has allocated £842 million worth of help to local councils, which was spent on cash payments, supermarket vouchers, free school meals and more to low-income families.
The scheme has been extended four times since it first began and now councils across the country are campaigning for Mr Hunt to extend the HSF for a fifth time, ahead of its current end date of 31 March.
When asked about the HSF being extended, a spokesperson for the government department told Netmums: 'We continue to keep all existing programmes and cost-of-living measures under review.
'People in England are encouraged to speak to their local council about the help available in their area.'
Stamp duty
It's thought that Stamp Duty could be scrapped.
Stamp Duty is a tax that you pay if you buy a house in this country.
In September 2022, the Stamp Duty was temporarily reduced so house buyers no longer had to pay the tax on the first £125,000 of your house. This was then doubled to £250,000.
This is due to end in March 2025 and there are calls for this scheme to be made permanent.
Cut beer tax
Currently, there is a tax added to alcohol sold at a higher rate of 1.2%, which vary depending on what the product is.
The government previously agreed to freeze the rates until August 1, 2024.
But now many bars and breweries are calling for the Chancellor to cut the tax by 5% as it could create jobs across the hospitality and alcohol sectors.
In a letter to the Chancellor, beer bosses said: 'No government should turn a blind eye to the erosion of such an integral economic and cultural asset.
'The Spring Budget could help ensure that the Great British beer and pub sector can help contribute to wider growth and prosperity for the local high street and the wider national economy.'
This comes after 500 pubs closed their doors last year.
What is the Spring Budget?
The Spring Budget follows the Autumn Statement, where financial plans are put forward by the Chancellor for the upcoming tax year.
In his 2023 Autumn Statement, Mr Hunt announced an increase to the National Living Wage and to benefits payments, among other plans.
In his Spring Budget, Mr Hunt will provide an update on these pledges, and how the government will be proceeding with them for the year as well as any new financial plans.
More financial help
Need further help and advice? You'll find details on all the benefits and entitlements you may be able to claim via the Netmums' Cost of Living hub.
There you'll find lots of Government-based advice on cash you might be entitled to, plus all the dates when you can expect the latest Cost of Living payments and other allowances to land in your bank account.
There are also top tips from the Money Saving Expert, Martin Lewis, as well as brilliant ideas for saving money on everything from your weekly shop, to that well-deserved holiday.
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