Starting Tuesday April 6th, people can expect numerous changes in the UK’s finances.
The date marks the start of a new tax year, and according to Chancellor Rishi Sunak’s budget announcement in March 2021, things will go up.
Households can expect changes in benefits, pensions, statutory sick pay and maternity leave.
There will be changes to benefits such as universal credit, personal independence payments and unemployment benefits.
Here are all of the financial changes coming this month as originally reported by Birmingham Live.
From April 6th, the new tax year will bring an increase in benefit rates including the state pension and universal credit.
Pension loan payments increase from £ 173.75 to £ 177.10.
The personal allowance is currently £ 12,500 for the 2020/2021 tax year.
In 2021/2022, the personal allowance will increase 0.5 percent to £ 12,570.
The personal allowance income limit will remain at £ 100,000 for the 2021/2022 tax year.
The income limit for the Married Couple Allowance will be increased from £ 30,200 to £ 30,400.
The property tax rate is 20 percent for incomes between £ 12,501 and £ 50,000.
The higher income tax threshold of 40 percent is currently £ 50,000 but will increase to £ 50,270 in April 2021.
The 45 percent additional income tax threshold is currently £ 150,000 and this rate will remain unchanged for April 2021.
Pension payments are set to increase by 2.5%, meaning people over 66 years of age will receive the full, new state pension £ 179.60 per week – an increase of £ 4.40 from the current rate of £ 175.20.
According to the daily recordThis equates to an additional £ 17.60 per month and £ 228.80 for FY 2021/22.
Anyone taking the “old” State Basic Pension (Category A or B) and currently receiving £ 134.25 per week will receive £ 137.65 – an increase of £ 3.40. This equates to an additional £ 13.60 per month and £ 176.80 for FY 2021/22.
Statutory sick pay
For the tax year beginning April 6, 2020, the statutory sickness benefit rate will be £ 95.85 per week from April 6, 2020 and is expected to increase to £ 96.35 from April 6, 2021 (historical rates can be found on our Legal Rates page “). Employers can deregister from SSP if they operate their own system (contractual sick pay).
The current weekly rate of Statutory Maternity Allowance is £ 151.20, or 90% of the worker’s average weekly earnings if this is less than the statutory rate.
Statutory Maternity Benefit rate is expected to increase to £ 151.97 from April 2021.
Households currently receive £ 21.05 per week for an eldest or only child plus £ 13.95 for additional children.
From April 12th this will increase to £ 21.15 per week and to £ 14 per week for additional children.
This is an increase of 10p or 5p per week and means the new monthly payments will be £ 84.60 for an eldest or only child and £ 56 for additional children.
Payment is made every four weeks on a Monday or Tuesday, and the applicant also receives Social Security credits that can be counted towards their state pension.
However, if an applicant or their partner earns more than £ 50,000 per year, a fraction of that must be paid back at the end of the tax year.
This equates to a rate of 1% for every £ 100 earned over £ 50,000. If more than £ 60,000 is earned in a year the full amount must be paid back.
Starting April 6, annual labor tax credit and child tax credit rates will increase for the 2021-2022 tax year.
During the UK government’s spring budget, Chancellor Rishi Sunak announced that the universal loan payment increase of £ 20 per week would be extended for an additional six months and that eligible applicants receiving tax credits would receive a one-time payment of £ 500.
Disabled Life Support
- Care component for housing benefit for the disabled, highest rate: £ 89.60 (vs. £ 89.15)
- Mobility component for housing benefit for the disabled, highest rate: £ 62.55 (versus £ 62.25)
The daily life component will increase from £ 89.15 to £ 89.60 for those with increased payments, while those with standard entitlements will increase from £ 59.70 to £ 60.
The mobility component will be increased from £ 62.25 to £ 62.55 for those with advanced needs. Standard entitlements increase from £ 23.60 to £ 23.70.
The personal allowance (single over 25 years old): £ 74.70 (versus £ 74.35).
Employment and Support Allowance (single over 25 years old): £ 74.70 (versus £ 74.35).