How will The Budget affect you?

osbornebudget1803b
George Osbourne (The Chancellor of Exchequer)

The budget in the next year is likely to have an impact on all of us. Many questions have been flying around from businesses, families and most importantly you. Young people like yourselves want to know what’s about to happen…but Firstly, I want you to understand exactly what the budget is.


What is The Budget?

The budget in short is a statement made every year by the government holding a purpose to explain how it will spend the countries money for the next 12 months.

As some of you may or may not know George Osbourne (The Chancellor of Exchequer) recently brought out the ‘summer budget’ to all of us stating that ‘we are all in this together’….

What does this mean?

Well the new changes announced in the recent UK Budget will affect everyone some way or another and if it doesn’t you may want to count yourself lucky!

There are many different aspects of the budget, however I have picked out the main things that I feel will have an effect on you.

 

Here is a list of some these changes:

  • The chancellor announced that an increase on people’s earnings shall be commencing next year. Yes that’s right! We will be seeing a New National Living Wage which, will be replacing the minimum wage as well as a rise in income tax.
  • Currently there are 1.4 million people on minimum wage jobs in the UK paying £6.50 an hour… as of April 2016 this shall rise to £7.20, which will then increase to £9.00 by 2020.

So let’s put this into play shall we let’s say if you work 40 hours a week and are currently paid National Living Wage your gross monthly income will rise by £28 next year and a whopping £200 in 2020 how amazing is George Osbourne please?? (Excuse me sometimes you have to take my miserable sarcasm I’m so sorry)

  • And get this from next year if you’re earning between £11,000 and £42,385 you will be a whopping £80 better off.

OUCHHHHH! Age benefits, Tax credits and Local housing allowance will be frozen for the next 4 years (besides maternity and disability pay)

  • Rents in social housing will be reduced by just 1% a year for 4 years and by 2020-2021 it should be a 12% overall reduction
  • As of Sept 2017 if you’re a working parent of a 3 or 4 year old you will be entitled to 30 hours free childcare
  • There will be also a ‘Youth Obligation’ so from April 2017 if your 18 to 21 years old you will have to apply for either an apprenticeship or a traineeship – gain some work experience or go on a 6 months placement- You will not be able to claim Housing Credit.
  • Lastly, (the deadly one) soon we will be seeing maintenance grants being replaced with loans of which, has increased to £8,200…. This will need to be paid back once you earn more than £21,000

This list here is just a small amount of changes that are soon to happen. Take note that the government is making some BIG changes to the British Economy.

What do you think guys? Will any of these changes affect you or a loved one?

When George Osbourne announced the changes for this budget he said that it would be for the ‘working people’ and that ‘we are all in this together’

I think we can all accept that this economy needs some harsh cuts to reduce the deficit of £90 billion but, how harsh do the cuts have to be before the government does more damage than good?

Some of these changes do not benefit the young and disadvantaged. Why? Well in my opinion I feel that the government has given an item in return for an item back. For example… offering more apprenticeships whilst scrapping maintenance grants which I do not believe is fair. Many of the people that will suffer from these measures are those from the low-middle income backgrounds. It doesn’t seem fair to punish them does it?

I remember being at University/College and knowing a vast amount of people that couldn’t afford to pay rent with just their loan, with a grant it made living cost just a little bit more easier for some people and those that really struggled had the option of taking up a part-time job just to make ends meet and this still wasn’t enough for some. It really saddens me that the government wants to add more debt to young people who want to gain further qualifications.

‘we are all in this together’

It sends the message to all that it’s only those that can ‘afford’ that should be entitled to go to University/College. It also appears that the young, disadvantaged and public sector again as always have been let down and punished. While, the wealthy sector of the UK have been more or less been gifted with corporation tax and income tax reduction.

Whilst there are some changes that come across beneficial to our nation. I still do believe that the bad outweighs the good.

Tell me do you still feel that Osbourne was right to say that ‘we are all in this together’?

(Source: http://www.telegraph.co.uk/)

 

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