What the Autumn 2024 budget might mean for you

The Government's Autumn 2024 Budget will mean cuts and increases to everyone’s income and day-to-day living costs in 2025, so we’ve summarised key changes that might impact you.

National minimum wage increase

From 1 April 2025, the national minimum wage will increase. Workers aged 21 and over will see a rise from £11.44 to £12.21 in their hourly rate. Those aged 18 to 20 will receive an even larger increase from £8.60 to £10.

State pension rise

The chancellor announced that the state pension will rise by 4.1%. This change will take place from the on 6 April 2025, which is the start of the new tax year.

The guarantee element of Pension Credit (a top-up benefit for low-income pensioners) will also go up by 4.1%, which could add an extra £465 a year for single pensioners and £710 for couples.

Benefits and Universal Credit

Benefits like Universal Credit and Child Benefit will increase by 1.7%.

If you’re on Universal Credit and have debts like rent arrears or unpaid bills, the amount taken from your payment to cover these debts will be reduced from 25% to 15%. This could mean an extra £420 a year for you.

However, anyone on Universal Credit who cannot work due to illness or disability will now have to take part in more back to work activities to continue receiving their full benefit.

Carer’s allowance earnings limit

Starting in April 2025, carers will be able to earn up to £196 a week without losing their carer’s allowance, up from the current limit of £151. If you are a carer, this will allow you to earn extra money without affecting your benefits.

Bus fare cap increase

The bus fare cap will rise to £3 across England from 1 January 2025. If you use buses regularly, this increase could add extra costs to your monthly budget.

The current £2 cap will remain in place in Manchester until the end of 2025.

However, you will lose your full benefit if you earn slightly above the limit and it’s unclear if this will change soon.