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Measures to support household budgets from 1 April

5 April 2024

In a recent press release the government confirmed the following policies to support household incomes from 1 April 2024.

The government recently confirmed several policies to support household incomes from 1 April 2024:

  1. The National Living Wage has increased from £10.42 to £11.44 per hour. This rise gives full-time workers an annual boost of £1,800. Consequently, no one over 21 will earn less than two-thirds of the average wage increase. This change benefits around 3 million of the UK’s lowest earners.
  2. Ofgem has reduced energy bills, leading to an average annual saving of £250 for households. This 12.3% decrease from the last quarter brings prices to their lowest since Russia’s invasion of Ukraine in February 2022.
  3. The Local Housing Allowance has increased, providing an extra £800 a year on average to some of the poorest families on Universal Credit or Housing Benefit.
  4. These changes coincide with the introduction of 15 hours of free childcare. This will save working parents an average of £3,450 a year, marking the first stage in the £8 billion childcare package announced by the Chancellor last year.

While these measures are welcomed, recent inflation increases have significantly impacted spending power. The continuous price increase somewhat diminishes the real growth in purchasing power.

However, the Consumer Prices Index (CPI) has dropped from 11.1% to 3.4% since October 2022. This drop has helped stabilize many families’ financial situation. The government anticipates that by Quarter 4 2024 (October-December), the CPI will have fallen to 1.4%.

Source: Other Fri, 05 Apr 2024 00:00:00 +0100

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