Budget breakdown – how the budget could effect you

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George Osbourne released his 2012 Budget on the 21st of March, which outlines the Government’s financial plans for the coming year. Student Parents took at look at the key points that could affect families with children:

CHILD BENEFITS

One of the more controversial points of Osbourne’s budget, households earning more than £50,000 a year will have their child benefits reduced.  This will include both a single parent income over £50,000 or a combined household income of £50,000 or over. The benefit will be withdrawn gradually, 1% of the Child Benefit for every £100 earned over £50,000. Child benefits will still be paid to all but claimants will have to fill out self assessment tax forms and will have the relevant amount reclaimed via tax.

This will come into effect from the 7th of January 2013.

If you want more details please have a look at the HM Revenue and Customs legislation here

HOUSING

Good news for those wishing to purchase their first family home but who don’t quite have enough for the large deposit required. The Government has introduced the New Buy Scheme to help people overcome problems buying a new home. Under the scheme, individual home builders will partner up with one or more mortgage lenders who will offer 90-95% loans on all properties offered by home builders participating in the scheme up to and including a sale price of £500,000.  Only new homes built by house builders signed up to the scheme will qualify, but most major and many smaller builders are in the process of registering.

New homebuyers will need to qualify for a mortgage with a mortgage lender in the usual way and be subject to the lender’s normal assessment criteria.

However, whereas in recent years lenders have generally required larger deposits, the scheme will allow loans to be secured at 90-95% of the property’s value, meaning the purchaser only needs to find a 5-10% deposit.

For more information please go to the New Buy site.

MOTORING

If you do the school run in your car, it will get slightly more expensive come August. There were no changes to existing plans on fuel duty and then 3.02p per litre increase will go ahead as planned on the 1st August 2012.

INTERNET

Working on your studies from home may become much easier thanks to the new budget. The Government are committed to providing 90% of the population with superfast broadband along with better mobile coverage in rural areas. As part of the £100 million investment announced in the August 2011 budget Belfast, Birmingham, Bradford, Bristol, Cardiff, Edinburgh, Leeds, London, Manchester and Newcastle are to become broadband super-connected cities.  A second wave will improve the internet access in smaller cities across the UK.

It’s difficult to estimate exactly how the new Budget can affect individuals.  If you’re confused about these new changes get in touch with Direct Gov or HM Revenue and Customs.

Rebecca

Image courtesy of FreeFoto.com

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