Easy News: The 2024 Budget

1. 

   On the 30th of October, the Chancellor of the Exchequer Rachel Reeves gave her first Autumn Budget.

2. 

   The Budget is how the Government tells people how it is going to get and spend money. The Budget can change lots of things for many people.

3. 

   This is Rachel Reeves 1st Budget, and the 1st budget for the Labour party since 2010. Labour won the general election in July 2024.

4. 

   Labour say they will try and give money to government services like the NHS but not ask working people to pay more.

5. 

   There are lots of things in the Budget so we have picked just a few things we think might be important for our readers to know. To read the full report, you can visit here.

6. 

   There will be a 1.7% increase in benefit rates in 2025. Personal Independence Payments, Universal Credit, and Employment and Support Allowance are all staying the same for now but will increase in April.

7. 

   If you get Universal Credit or Employment and Support Allowance and are disabled, the Government can test you to see if you can work. This is called a Work Capability Assessment.

8. 

   The Government has said it is spending too much money on benefits. The Government hopes the Work Capability Assessment will get more people working.

9. 

   The Minimum Wage is going up. That is a law that makes sure people get paid at least this much for every hour they work.

10. 

    If you are 21 years old or older, the Minimum Wage will go up from £11.44 per hour to £12.21 per hour. If you are 18 years old to 20 years old, it will go up from £8.60 to £10.

11. 

    If you get Universal Credit but are in work, there is a thing called the Administrative Earnings Threshold, sometimes called the AET. If your job pays you less than the AET then the Government asks you to look for more work.

12. 

    The AET is based on the Minimum Wage. As the Minimum Wage is going up, so is the AET. Some people might be asked to start looking for more work. For most people there will be no change.

13. 

    The Government sometimes pays people for taking care of their family, called a Carer's Allowance. People can stop getting Carer's Allowance if their job pays them more than the limit.

14. 

    The budget increased the amount people can be paid by their job and keep the Carer's Allowance. By April 2025 they will be able to earn up to £196 pounds per week after tax.

15. 

    The Government is raising the highest price of bus ticket. Right now, a bus ticket cannot cost more than £2. Next year, some bus tickets can cost up to £3.

16. 

    The Household Support Fund will stay until 2026 or even further. The Household Support Fund is money given by the government to local authorities to help people pay for things they need, like clothes or an oven.

17. 

    When people are paid by their job, some of the money is taken by the government as a National Insurance payment. That amount will not change.

18. 

    The Government is asking businesses and charities to pay more employers National Insurance. This means that it will cost them more to hire people.

19. 

    Some charities are saying having to pay more in National Insurance and a higher Minimum Wage will make it hard for them to keep helping people.

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