April 6th is the start of a new tax year in the United Kingdom and it’s good to look ahead to make sure you are benefitting from any changes.
State Pensions
State pensions are due to rise by 4.1% which should see an increase of almost £500 a year. Look out for a letter from the Pension Service in early March informing you of your new payments. Should you not receive a letter, or your pension does not increase, call 0800 731 0469.
Minimum wage
The National Minimum Wage is due to increase from the 1st April. The new rates are:
- 21 and over: £12.21 which is the National Living Wage per hour
- 18-20 years old: £10 per hour
- 16-17 years old: £7.55 per hour
- Apprentices: £7.55 per hour
Make sure you check to see your employer has raised your rate of pay.
Benefits
Universal Credit will increase by 1.7%.in line with the Consumer Prices Index giving rises to include from £393.45 to £400.14 per month for single people aged 25. Whether you are single or a couple you can check what your increase will be by using the benefits calculator at www.gov.uk/benefits-calculators or contact your local Citizens Advice.
Both Personal Independence Payments (PIP) are also due to increase by 1.7% and Child Benefit is also increasing to £26.05 per week from £25.60 for families with one child and £17.25 per week from £16.95 for each additional child. The net income threshold for Child Benefit has risen from £50,000 to £60,000 supporting more parents with the costs of raising a child.
This could now be the time to review your income and expenditure and look to reducing any debts you may have.
Savings
If you have an ISA and some available savings, now is the time to top it up before the new tax year begins on the 6th April.
If you would like help with reviewing your finances or questions on any of the changes that are happening for the new tax year, contact your local Citizens Advice.
Ring our free Adviceline on 0808 278 7962 (option 4), Monday to Thursday 9.30am to 4pm
Call into one of our drop in sessions at the Eden Centre: Monday to Thursday 9.30am – 3pm.
Email us anytime at enquiries@edenbridgecab.cabnet.org.uk
Appointments also available in Westerham.
