Wed, 26 Mar 2025

Wed, 26 Mar 2025 Three ways the Spring Statement could affect you and your money

While the Spring Statement focusses on the wider UK economy, it could have implications for your money.

* Changes to the welfare system announced last week mean some people may lose support next year, although universal credit payments will rise from April. + The standard allowance for universal credit will increase to £106 a week in 2029-30, not £107 as previously stated. + The health element of universal credit, which is paid if your ability to work is limited, was set to be halved for new claimants but will now be frozen at £97 a week until 2029-30.
* From April, household bills are expected to rise, including: + Water + Energy + Council tax
* The minimum wage will increase to £12.21 an hour from the current £11.44 for those over 21.
* Inflation is forecast to average 3.2% this year and then fall to 2.1% in 2026 and 2% in 2027, above the government's target of 2%.
* Interest rates are expected to remain higher than previously thought due to rising inflation.
* Living standards are expected to improve, with real household disposable income forecast to rise by over 2% between now and 2030, meaning an average £500 a year increase by 2030.
* The government is considering reforms to Individual Savings Accounts (Isas) to encourage investing money.
* A spending review in June will outline how much each government department has to spend, which could lead to job cuts or investment creating new jobs.
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