Budget 2024: Measures for families announced today as Chancellor Rachel Reeves’ budget raises taxes by £40bn
and on Freeview 262 or Freely 565
The Chancellor of the Exchequer Rachel Reeves delivered her budget speech to the House of Commons today (October 30).
Advertisement
Hide AdAdvertisement
Hide AdIt was the first Labour budget since the late Alistair Darling delivered the final budget of the Gordon Brown premiership in March 2010. It was also the first budget delivered by a woman in the UK’s history.
Reeves said the budget will raise taxes by £40bn.
We’ve rounded up the measures affecting families Reeves announced in the budget today.
The Fair Repayment Rate
The Fair Repayment Rate, which will come into force in April 2025, will cap the amount that can be cut from benefit payments each month to repay short-term loans and debts. The level of monthly deductions to an individual’s universal credit standard allowance will be capped at 15%, instead of the previous level of 25%.
Advertisement
Hide AdAdvertisement
Hide Ad1.2 million households, including 700,000 families with children, will, on average, be £420 a year better off.
£1.4bn for rebuilding schools
Rachel Reeves confirmed £1.4bn to meet a target of rebuilding 50 schools in England a year. The programme, announced in 2020 by ex-prime minister Boris Johnson, aims to rebuild or refurbish about 500 schools in a decade.
The chancellor also announced a “tripling” of investment in primary school breakfast clubs.
Advertisement
Hide AdAdvertisement
Hide AdSpecial educational needs funding
The chancellor announced a £1bn increase in special educational needs funding - an increase of 6% year on year.
Tax changes announced in the budget
National Insurance increase for employers
Reeves confirmed she is not increasing income tax, employees’ national insurance and VAT.
However, the amount of National Insurance paid by employers will rise by 1.2% from April 2025. Employers will start paying it at £5,000, rather than £9,100.
Advertisement
Hide AdAdvertisement
Hide AdCapital gains tax
On capital gains tax, Reeves said the lower rate will rise from 10% to 18%, and the higher rate from 20% to 24%.
Inheritance tax
Rachel Reeves is continuing the freeze on inheritance tax thresholds until 2030. Inherited pensions will be brought into inheritance tax from 2027. Reeves says the government will also reform agricultural property relief and business property relief from April 2026.
Comment Guidelines
National World encourages reader discussion on our stories. User feedback, insights and back-and-forth exchanges add a rich layer of context to reporting. Please review our Community Guidelines before commenting.