 News
13th March 2008
What the Budget
means for familiesOne of the principal aims of Alistair Darling's
first Budget as Chancellor was to provide greater help for families, in particular
those on low incomes. Reiterating the Government's aims to halve child poverty
by 2010, Darling said, "There is no greater moral imperative than to make
sure that every child has the highest aspiration and ambition, and the best possible
opportunity to go as far as they have the talent to go. Not some children, but
every child." The round-up of the main points for families; Child
benefitFrom April 2009 the weekly child benefit payment will increase
from £18.10 to £20 for the first child. There will be no change of £12.10
a week for each additional child. Although these rises were already in the pipelines,
Mr Darling has confirmed that parents will get this boost a year earlier. Child
Trust Fund and Tax CreditsThe Chancellor confirmed in the Budget that
children born from September 2002 will receive a £250 payment from the Government
into their Child Trust Fund on their seventh birthday. Those on lower incomes
will get £500. From April 2009, the child element of the child tax credit
will increase by £50 a year above inflation for families on low and middle income.
Although families earning up to £58,000 a year can claim some support with childcare
through the tax credit system, they will not all benefit from this higher payment.
The chancellor said these measures, along with the early increase in child
benefit, mean that families with two children, earning up to £28,000 a year, would
be £130 a year better off. SavingsThe government will launch the
"savings gateway" nationally with the first accounts available by 2010, although
this will only be available to families earning less than £15,000 a year. The
scheme means the Government will match savings made over a two year period. Sheena
Hay, of accountants Grant Thornton said: “On these incomes people have very little
spare money to save, so you have to wonder how useful such a scheme will be.”
CarsThe rise in fuel duty of 2p per litre, due to start this April,
has been postponed to October 2008. From April 2010, there will be no Vehicle
Excise Duty in a car's first year if it emits less than 130 grammes per kilometre
of CO2. But there will be a higher first-year rate for the most polluting cars
which could mean owners of estate cars and people carriers could pay hundreds
of pounds a year more to drive on the roads. Fags and boozeTax
on tobacco means the price of a packet of 20 cigarettes will increase by 11p,
and 4p to the price of five cigars. From midnight on Sunday, alcohol duty
rates will go up by 6 per cent above inflation, meaning beer will rise by 4p a
pint, cider by 3p a litre, wine will be 14p a bottle more expensive and spirits
will cost 55p a bottle more. In a nutshellOther than the modest
increase in child benefit from April 2009, the majority of the help in this Budget
was targeted at those on lower incomes. Although figures from the treasury suggest
that families with children will be, on average, £2,000 a year better off, dozens
of popular family cars such as the Renault Espace and Ford Mondeo will now face
much bigger bills. Where to next? | 
