The Salary Calculator

Weighing up early retirement

by Madaline Dunn

When it comes to thoughts about retirement, many can’t wait to clock out for the last time, willing it to come as fast as possible. A third of people, for example, want to retire by the age of 60.

That said, very few believe they’ll actually achieve this. Research from Hargreaves Lansdown found that adults aged 34 and under expect to retire when they’re 63, on average, while only one in eight believes in the feasibility of retiring by age 55. For those further on in their lives, for example, those aged 55 and over expect to retire much later, 68 years old on average, and as many as one in five believe they’ll have to wait until 70 years old to retire.

Research from Canada Life has, however, found that more than two in five UK adults aged 55-66 years old have taken early retirement since the beginning of the pandemic in March 2020. Still, it’s important to note that new research finds little evidence for the so-called ‘Great Retirement’ and instead cites long-term illness as the reason for large swathes of older workers leaving the workforce.

In this week’s article, we’ll explore the following:

• The motivations behind people pursuing early retirement,
• What’s required to retire early and how to plan for it,
• The risks associated with early retirement.

The motivations for early retirement

While many view retirement as the end of one’s working life, for many, it can actually be an opportunity to pursue a new career, look into consulting, volunteering, or even get back into education and study. Others see it as an opportunity to spend more time with their family and get back in touch with themselves and their passions.

Of course, not all are looking to leave the workforce solely to enjoy their golden years. According to Dr Afik Gal, co-founder of Assured Allies, age discrimination can play a part in pushing people into early retirement. Likewise, layoffs can also be a reason for early retirement, as can declining health.

What’s required to retire early and how to plan for it

When considering taking early retirement, there are a few things that will be required to ensure the process is as smooth and sustainable as possible. To begin with, it’s worth asking yourself some questions to ensure that you’re both emotionally and financially ready to retire. Some of these questions include:

• Have I got any debts I need to pay off? When looking to retire early, it’s important to ensure that you pay off debt and avoid accumulating further debt, as far as possible. Long-term and short-term loans come with interest and divert money away from savings.
• Do I need to pay off my mortgage? If you can afford it, making overpayments on your mortgage can help you pay it off sooner rather than later, and you’ll pay less overall. That said, be sure to check whether you’ll be faced with any repayment penalties before doing this. Some advisors also warn that you might risk depleting your liquidity, so make sure to check whether it’s the right move for you.
• How much money will I spend each month, and do I have enough for daily expenses? Having a clear idea of where you are financially will help you make this decision much more easily and work out a budget for basic day-to-day living. It’s also worth noting that the figure you come to will likely increase yearly with inflation.
• How much do I require for my discretionary funds? While you may have the basics covered, it’s important to factor in the money you’ll want to spend on leisure activities, treats and holidays. If you’re in a situation where you’re just scraping by each month, you’re unlikely to enjoy your early retirement.
• Have I planned for unexpected events and emergency savings? For most, life is rarely straightforward, and whether it’s a medical emergency, a burst pipe, or, say… a pandemic, you’ll likely face a few curveballs in the years to come. It’s a good idea to have an emergency savings fund to prepare for these unforeseen events.
• What are my plans for after I retire? Experts say that it’s key to make plans post-retirement for fulfilment and mental stimulation. Do you plan to pursue a new hobby, volunteer, or study?

When you’ve weighed up whether or not an early retirement is for you, there are a few actionable ways you can plan ahead.

Once you’ve figured out the sum of what you’ll need to survive and thrive in retirement, it is key to make an inventory of all of your assets, so you can determine where your retirement income will be derived.

You’ll need to review your pension options, too. You won’t be able to access your state pension until you reach state pension age, and if you retire early, you might be entitled to less. Likewise, it’s important to check the rules around your personal or company pension – in some cases, you may not be able to access it early, but on the other hand, if you retire due to circumstances out of your control, such as illness, you might be able to access an enhanced pension. The details will also be different regarding defined contribution pension schemes, so be sure to get your ducks in a row.

Once you’ve looked into your pension pots, also assess any investments you have, how much your property is worth, and whether downsizing could be an option. Equally, you may decide on a phased retirement or decide to take up part-time work to supplement your retirement income.

After that, experts advise you to make a savings and investment plan, and if you follow the FIRE movement to retire early, set aside 25% and 50% of your monthly income.

It’s also worth speaking to a financial advisor, who will be able to guide you through the process and help you weigh up your options.

What are the risks associated with early retirement?

Early retirement is not without its risks. From a financial perspective, it’s important to note that economic recession, inflation and unexpected medical expenses can leave you in a position you may not have prepared for.

Right now, for example, inflation is at a 40-year high, and the cost of living is rising sharply. Likewise, if your pension doesn’t stretch as far as you thought it might, you may have to re-enter the workforce, which could come with challenges, especially with an employment gap. It’s also worth bearing in mind that you might live longer than you’d expected and so, it’s a good idea to make sure you can pay for the cost of care in later life.

Aside from the financial side of things, it’s also key to note that some research suggests that early retirement can be bad for the brain. Some research, for example, has found that those in retirement have a 38% faster rate of verbal and memory loss than those still working. Likewise, the National Institute of Health estimates that a third of individuals in retirement have symptoms of depression.

Tags: early retirement, Jobs, retirement, savings

Couples and finances

by Madaline Dunn

In a relationship, there’s nothing less romantic than finances. However, research shows that speaking more openly and transparently about money can actually bring you closer together. This is especially true during the cost of living crisis, where research shows money is increasingly the focus of tension and arguments.

In this week’s blog, we’ll explore:

• Couples financing in 2023
• What financial infidelity is
• How to get better at financial planning and build financial intimacy

Couples and money talk in 2023

Research shows that when it comes to money, in relationships, pressure has really piled on in recent years, with the cost of living crisis making things increasingly difficult.

As a result, more and more people are reaching out for help in these areas. According to the website Counselling Directory, there has been an increase in the number of people using its site to find a therapist and in a survey of the Directory’s therapists, a third reported more clients have been talking about relationship problems caused by rising living costs.

Likewise, an Aviva study found that while 5% of couples argue with their partner about money daily, 12% have noticed a significant increase in the number of finance-related arguments since the cost of living crisis ramped up.

Financial infidelity

While many have heard of emotional or physical infidelity, financial infidelity is lesser known but equally as destructive. This kind of infidelity happens when there is dishonesty relating to personal finance in a relationship, whether that’s having a secret credit card, hiding debts or purchases or having a secret gambling addiction.

Aviva research shows that this kind of infidelity is actually rather prevalent, too, with two in five of those in a relationship or marriage committing ‘financial infidelity’. For example, 38% of people admit to stashing money away, with the amount squirrelled away averaging at over £1,600; 32% have more than £2,000 stashed away.

There are many reasons why people hide financial decisions from their partners, but researchers suggest that often, one of the main reasons is shame.

Interestingly, couples from the younger generations are more likely to commit financial infidelity. For example, 63% of Generation Z couples are followed by 54% of Millennials.

Speaking about this, Alistair McQueen, head of savings and retirement at Aviva, said: “Being upfront, honest, and transparent about your finances with your partner can help avoid problems in the future.”

Adding: “Having a general view of how much is being spent each month, along with overall debts or savings across the household can be important when it comes to making decisions about longer term financial objectives like when you can afford to retire, or whether to downsize your home to release some capital to help your children.”

Moreover, many are able to recover from financial infidelity. The road to recovery can begin by being honest with each other, and acknowledging that financial infidelity has taken place. Listening to each other without judgement can be difficult, but experts explain this a key step to resolving the situation. Likewise, experts also say it can be an opportunity to examine your relationship and finances and, in the future, strive for transparency.

Enhancing financial planning and building financial intimacy

Research shows that while over half of the marriages end in divorce, most divorcees cite “disagreements over money” as the biggest reason for their split. As a result, experts suggest that having a clear understanding of where your respective finances are, planning things out together, and embracing transparent financing can help.

Some tips for enhancing financial planning and building financial intimacy include:

Discussing, setting and achieving shared financial goals: When you’re both agreed on a direction you want to head toward, it’s easier to budget, make a budget, track your expenses, and build savings for the future. Initiating conversations might be difficult, but there are some top tips for making things as smooth as possible:

• Avoid discussing money before you go to bed,
• Don’t drink alcohol before discussing finances; it can often make people more disinhibited, leading to less productive financial conversations,
• Make finance conversations a regular occurrence rather than a one-off. This will help you both feel more comfortable discussing money and forging financial plans.

Have an open, honest conversation about single versus joint accounts and what will work best for you both: These days, the split is about 50:50 when it comes to shared bank accounts, with many preferring to keep their finances separate from their partners’ and 49% doing so in order to remain financially independent. Of course, there are pros and cons on both sides. A joint account can help you and your partner keep things all in one place for savings and bills, but it can have wider financial implications, so make sure to think it through. For example, if you enter joint debt together, for example, a mortgage or loan, you’re both liable for the payments.

Equally, if you’ve decided you no longer want a joint bank account after opening one up, there are some tips to follow:

• Be sure to open up a new account first,
• Cancel or redirect direct debits,
• Transfer all your finances, recurring payments/bills and deposits,
• Split your money fairly.

Reach out for financial support: Research shows that financial planning support can help couples gain insight into their finances. Further, those who receive financial planning support are more likely to be unified in their financial decisions, and have more transparent communications about money.

Regularly check in about finances: Making sure to regularly review your financial situation with your partner can be a healthy way to make sure you’re both on the same page; whether that’s regarding individual concerns and anxieties, updating finance goals, or reassessing budgeting.

Decide who will pay for what and how bills will be split: A significant point of contention between couples is often how the household income and spending should be split. Experts have found that around 16% of arguments have their roots in bill contributions. So, to alleviate some of the stress and strain here in relationships, make sure to come up with an agreement that suits you both.

Tags: bank account, Economy, joint bank account, Managing money, Personal finances

Council tax spending: The breakdown

by Madaline Dunn

With news that council tax will be hiked by nearly 5% in some places across the country, it’s likely that you’ll be wanting to gain insight into what exactly your money goes toward and a breakdown of what is spent on what.

At The Salary Calculator, we’ve done the hard work for you, so you can understand more about your council tax bill. Below we’ll walk you through:

• The different council tax bands and how they’re calculated
• Where your money goes
• Which councils charge the most and the least
• How to check you’re in the right council tax band

Council tax bands

Council tax bands are calculated differently in England, Scotland, Wales and Northern Ireland, but in England, Scotland and Wales, there are between eight and nine Council Tax property value bands. In England and Scotland, A is the lowest and H is the highest, while Band D represents the midpoint of a “typical family home.” In Wales, however, properties are categorised into nine bands, from 1 (the highest) to 9 (the lowest).

Properties in England, for example, are categorised based on the price they would have sold for in April 1991. The same goes for Scotland, but in Wales, it’s slightly different, because the bands were revalued in 2003; as such, council tax bands are determined by the price a house would have sold for in April 2003.

Northern Ireland also has a different system; and while it doesn’t use council tax bands, it switched to a modified system of domestic rates, which is based on the capital value of individual properties. Under this system, to work out the ‘domestic rate poundage’ for your council area, the rateable capital value of your property is multiplied by the domestic regional rate and domestic district rate added together.

In England, the council tax bands are as follows:

• A up to £40,000
• B £40,001 to £52,000
• C £52,001 to £68,000
• D £68,001 to £88,000
• E £88,001 to £120,000
• F £120,001 to £160,000
• G £160,001 to £320,000
• H more than £320,000

In Wales, the council tax bands are:

• A up to £44,000
• B £44,001 to £65,000
• C £65,001 to £91,000
• D £91,001 to £123,000
• E £123,001 to £162,000
• F £162,001 to £223,000
• G £223,001 to £324,000
• H £324,001 to £424,000
• I more than £424,000

Where your council tax is spent

A few years ago, the Local Government Association analysed UK-wide data on council tax spending and projected that in 2019/2020, council tax would be spent on the following:

• 57p of each £1 would go to social care
• 8p would go to highways and public transport
• 8p would go to education support
• 8p of each pound would go to homelessness and planning
• 7p would go toward waste management and street cleaning
• 7p would also go to licensing, elections, trading standards
• 5p would go to museums, parks, libraries

Different councils will have different priorities when it comes to spending council tax, and a more updated, regional breakdown shows quite a bit of diversity. Below we’ve picked some councils from across the country to demonstrate this.

At Malvern District Council, for example, council tax is paid to five different organisations:

• For every pound you pay in Malvern, 70.4p is allocated to Worcestershire County Council, which goes toward adult social care, looking after children, road and path maintenance, libraries and waste disposal,
• 12.6p in each pound paid goes to the West Mercia Police and Crime Commissioner for crime and safeguarding,
• 8.7p stays with the district council to fund services such as waste and recycling collections, housing, parks, public toilets, and elections.
• 4.5p goes to Hereford & Worcester Fire and Rescue Service for fires and major emergencies,
• 3.8p in every pound goes to the town or parish council, for parks and playgrounds, cemeteries, bus shelters, etc.

Similarly, through Ealing Council, children’s and adults’ social care services are where most of the money is distributed, making up 60p in each pound of the council’s spending.

Elsewhere, Bath & North East Somerset Council’s spends:

• Adult Social Services: 48.9p,
• Children’s Services: 27.4p,
• Refuse Collection & Disposal: 12.1p,
• Highways, Transport, Planning & Economic Development: 8.8p,
• Housing & Public Protection: 5.6p.

In Uttlesford District Council, meanwhile, money is distributed as follows:

• 71p goes to Essex County Council,
• 11p goes to the Police, Fire & Crime Commissioner – Policing and community safety,
• 9p goes to Uttlesford District Council,
• 5p goes (on average) to town and parish councils,
• 4p goes to the Police, Fire & Crime Commissioner – Fire & Rescue Authority.

Dartford Borough Council spends council tax on the following:

• 74p to Kent County Council, for education, social services, adult social care, etc.,
• 9p to Dartford Borough Council, to pay for community and housing, refuse collection and recycling, environmental services, etc.,
• 11p to The Police and Crime Commissioner for Kent for crime and protection services,
• 4p to Kent and Medway Fire and Rescue Authority for fire and other emergency services,
• 2p to Town and Parish Councils (on average) for maintaining: allotments, common lands, burial grounds, play areas, etc.

Interestingly, in North Herts, the majority of your pound goes to waste collection and street cleaning. The spending figures are as follows:

• Waste collection and street cleaning – 41p,
• Parks and green spaces – 23p,
• Environmental health – 11p,
• North Herts Museum and Hitchin Town Hall – 9p,
• Housing advice and homelessness support – 9p,
• Community safety and environmental crime – 4p,
• Grants to community organisations, including area committee grants – 3p.

Council tax bills and spending comparison

As explained above, council tax bills and spending vary depending on where you’re situated within the UK, however, according to government council tax figures, the average council tax of a Band D property set by local authorities across England is £1,966. In London, however, the average Band D property is £1,684 a year.

Below we compare what some of the different councils in the UK are charging.

According to the latest figures, Pembroke council has the lowest council tax, ‘Band D’, in Wales for 2022-23 at £1,249.17. Meanwhile, the most expensive council tax band is Rutland County Council in the East Midlands, at £2,300 a year. Westminster, comparatively, has the lowest bills in England, with Band D homes set to pay around £920 a year with the latest hike, which is still less than half the average in England.

Check you’re in the right council tax band

Due to the way that homes were valued back in 1991, experts believe thousands are in the wrong band. So, it’s definitely worth checking.

You can do this by first checking with your neighbours’ council tax bands. And don’t worry, there’ll be no awkwardness because you don’t have to check with them directly; by using either, Gov.uk (in England) and Scottish Assessors’ Association (SAA)(in Scotland), you can find all the information you need. If your neighbours are in different bands, this could mean that you have a cause – but beware, it could go either way – neighbours’ bands could increase in line with your own. That’s why it’s important to do a valuation check – check out this free house price valuations guide, to find the tool that works best for you.

Once you’ve gathered the above information, passed the point of speculation, and done sufficient research, you can reach out directly to the Valuation Office Agency (VOA), or the Scottish Assessors’ Association (SAA) in Scotland. It’s worth bearing in mind that a formal challenge can only be launched if you’ve resided in the property for six months or less. Likewise, if your request is rejected, you have three months to appeal to the Valuation Tribunal.

Tags: council tax, council tax bands, Economy, taxes

Government plans to regulate crypto for greater consumer protection

by Madaline Dunn

Crypto can feel like a bit of a minefield at the best of times, it is undoubtedly volatile, and currently, comes with fewer legal protections. However, as governments increasingly look to capitalise on the cryptomarket, and a number of high-profile hacks, regulation is on the way. This was first seen in the Financial Services and Markets Bill (FS&M Bill), and its latest proposals concerning the regulation of cryptoassets.

At The Salary Calculator, we know how challenging it can be to navigate the ins and outs of crypto and if you’re thinking of dipping your toe in as a potential investment opportunity, you’ll likely want to know where you stand from a regulatory point of view. Below, we’ll walk you through:

• The current risks associated with crypto
• The government’s regulatory plans and what they’ll involve
• How you’ll be affected as a consumer and how to keep safe when trading

Current risks associated with crypto

Crypto is known for being elusive, and volatile. According to research by the All-America Economic survey, only 8% of Americans have a positive perception of cryptocurrency. It’s only slightly better in the UK, too, with 15% thinking positively about crypto.

It’s no wonder there’s such a bad perception of the currency, either: it’s a big energy sucker, not VERY environmentally friendly, people often make losses trading (three-quarters have likely lost money on their investments in cryptocurrencies) and billions have been stolen in recent years.

Recent research by Chainalysis found that 2022 was the biggest ever year for crypto hacking, with around $3.8 billion stolen. Speaking about this, Kimberly Grauer, director of research at Chainalysis, said: “This year we saw some really big attacks that accounted for a lot of the value hacked. We saw a lot of advancements in the Web3 space – that introduced large new vulnerabilities that expert hacking organisations exploited.”

The EU has already outlined the world’s first comprehensive set of rules, due for final approval shortly, and to be introduced by next year. The UK is now following the EU’s example.

Plans for increased safety

To battle against the fraud and theft that is rife in the cryptomarket, the UK government has set out plans to bring in tighter regulation. According to the Treasury, this regulation is pegged to “protect consumers” without “stifling the potential economic benefits” of the crypto industry. This comes after criticisms that crypto is, at present, a “wild-west.”

So, what will the regulation actually do? Well, according to the government it is going to bring regulation of a broad suite of cryptoasset activities in line with its approach to traditional finance.

The government has outlined in its consultation for the proposals:

• It will create rules on crypto-asset promotions which are “fair, clear and not misleading,”
• Boost data-reporting requirements, including with regulators,
• Introduce new regulations to prevent “pump and dump,” which involves people artificially inflating the value of a crypto asset before selling it.

In a statement, Andrew Griffith, economic secretary to the Treasury, said: “We remain steadfast in our commitment to grow the economy and enable technological change and innovation – and this includes cryptoasset technology. But we must also protect consumers who are embracing this new technology, ensuring robust, transparent and fair standards.”

How the changes could affect you and how to keep safe when trading

According to research, 2.3 million people in the UK own some form of crypto asset, which means that there’s a whole host of people that could be affected by the regulation proposals currently open to consultation.

There are a few key things to note and below we’ll go into a little more detail:

• The government is discussing an issuance and disclosure regime, which will seek to provide appropriate liability and compensation for untrue or misleading statements, as well as minimum standards of information around issuance and investor protections regarding marketing materials,
• Regarding exchanges, the government is exploring “transparent and fair access and operating rules,” with systems and processes for ensuring accurate market data in real-time,
• It is proposing a dedicated regime to detect and tackle market abuse in digital asset markets (spoofing and layering, pump and dumps, wash trading, etc.),
• With regard to lending programs, the government outlined there should be: adequate risk warnings for consumers; adequate liquidity and wind-down arrangements; clear contractual terms for ownership and, ringfence retail funds in the event of insolvency.

Further to this, on Monday 6th February, the Government published a policy statement on its approach to cryptoasset financial promotions regulation. This outlined that cryptoasset promotions to UK consumers, will have to be clear and fair, and offer customers a 24-hour cooling-off period.

Speaking about the proposals, Jason Guthrie, European head of digital assets at the financial firm, Wisdom Tree, said looking forward, the “devil would be in the detail” with the right regulation in the interests of the industry and customers. “Having a solid a regulatory framework, having enforcement capabilities, is really important for consumer confidence. The sooner we have details around concrete proposals, the easier it is to plan for and build towards,” he said.

The proposals would largely see more security around investment, however the consultation on the proposals will run until April 2023, and safeguards will not be introduced for quite some time. Even when they are introduced, they still won’t eradicate all the risks associated with trading. Until then, to ensure you safeguard yourself, take the following steps to make investing safer:

• Be sure to use a trusted crypto platform and make sure to carefully read your exchange’s user terms and agreements. This will assist you with finding out where your funds are stored and what will happen if an exchange goes bankrupt.
• Enable two-factor authentication so that you’re provided with an additional layer of security.
• Avoid Public Wi-Fi Networks, unless you have a VPN. This is because public Wi-Fi networks are vulnerable to hackers and allow them to spread malware.

Tags: cryptoassets, cryptocurrency, Economy, UK

The Autumn Budget: What it means for you and your finances

by Madaline Dunn

In his first speech as Prime Minister, Rishi Sunak said the country was “facing a profound economic crisis.” Following this, it was announced last week that the country had officially entered a recession. This means there has been a prolonged downturn in economic activity and a fall in GDP for two successive quarters.

In the wake of this news, the new Chancellor, Jeremy Hunt, warned that “decisions of eye-watering difficulty” are ahead and that the government will be asking “everyone for sacrifices.” He subsequently announced the long-awaited Autumn Budget, detailing a wide range of tax rises and spending cuts. After this announcement, the pound fell 0.9%.

At The Salary Calculator, we know that this is an incredibly challenging time for millions of people, and it’s likely that you’ll have a lot of questions about what the budget means for personal finances. So, we’ll walk you through the changes likely to impact you. This includes:

• What changes are upcoming
• When these changes will take effect
• Cost of living payments
• The impact the changes will have on take-home pay
• What’s happening with benefits
• Helpful resources to cope with the cost of living crisis

What changes are coming up?

In the Chancellor’s budget statement, he made a number of announcements in regard to National Insurance (NI), Income Tax, Pensions, and more. This included:

• That income tax personal allowance will be frozen at £12,570 until April 2028, in addition to a freeze on the Basic Rate.
• The threshold for paying the 45p rate has also been lowered to £125,140 from the existing £150,000, bringing an additional 246,000 people into the bracket. Those within the bracket will now pay an extra £580 each a year, equating to an additional £1.3 billion a year for the Treasury.
• The main NI thresholds will remain frozen until April 2028.
• The pension triple lock (frozen during the pandemic) will come in, meaning that the State Pension will increase in line with whichever of the following three is highest:

-Inflation

-The average wage increase

-2.5%

• The National Living Wage (NLW) will be increased by 9.7% from £9.50 an hour for over-23s to £10.42: an annual pay increase of over £1,600 for a full-time worker.
• Young workers and apprentices on the National Minimum Wage (NMW) rates will also see their wages slightly boosted. Those aged 21-22 will see an increase of 10.9% to £10.18 an hour, while for those aged 18-20, their wages will increase by 9.7% to £7.49 an hour. Those aged 16-17 will see their wages increase by 9.7% to £5.28 per hour, and the same for Apprentices: an increase of 9.7% to £5.28 an hour.

Speaking about the changes brought in under the budget, Hunt said the government is taking “difficult decisions on tax-free allowances.” Adding: “I am maintaining at current levels the income tax personal allowance, higher rate threshold, main national insurance thresholds and the inheritance tax thresholds for a further two years taking us to April 2028. Even after that, we will still have the most generous set of tax-free allowances of any G7 country.”

When will the changes take effect?

Although the Chancellor announced the budget on the 17th of November, the changes will take effect from April 2023, affecting around 19 million families.

Will cost of living payments continue?

The government has announced additional cost of living payments will be made throughout 2023-24. This means that:

• If your household receives means-tested benefits, you will receive an additional £900 payment.
• You will receive an additional £300 payment if you live in a pensioner household.
• If you are an individual on disability benefits, you will receive an additional £150 payment.

What impact will the changes have on take-home pay?

While there will be a continuation of cost of living payments, freezes on NI and Income Tax payments for those on lower incomes, and an increase in the NLW, according to statistics experts, the announcements from the budget statement mean that you’ll likely be worse off.

Discussing what this means in real terms, Robert Cuffe, a statistics expert at the BBC, explained that if you’re one of the lucky ones to receive a pay rise that “just about keeps pace with inflation” in April 2023, while your pay cheque will be bigger because prices have risen as much as your salary, you won’t be better off. Cuffe outlined that if you’re a basic rate taxpayer, the government will take around £300 out of your increased wages, and if you’re a higher rate taxpayer, this jumps to £670.

To better understand how the budget changes will directly affect you and your finances, head over to The Salary Calculator’s Take Home Tax Calculator.

What’s happening with benefits?

In the budget, it was outlined that benefit rates will increase in line with inflation, equating to an increase of 10.1% this year. So, for families, the benefit cap will increase from £20,000 to £22,020 (and in Greater London, £23,000 to £25,323). Meanwhile, for single adults, the benefit cap will rise from £13,400 to £14,753 (£15,410 to £16,967 in Greater London).

With regard to those on disability benefits, there is a new Disability Cost of Living Payment. So, according to the government, more than six million people across the UK on non-means-tested disability benefits will receive a £150 Disability Cost of Living Payment. Those eligible for this cost of living payment include those currently receiving:

• Disability Living Allowance
• Personal Independence Payment
• Attendance Allowance
• Scottish Disability Benefits
• Armed Forces Independence Payment
• Constant Attendance Allowance
• War Pension Mobility Supplement

Resources to help during the cost of living crisis

It’s understandable to have concerns about the cost of living crisis and personal finances, but there are some resources available to help you navigate these difficult times. We’ve shared some of these resources below:

Local government support: https://www.local.gov.uk/our-support/safer-and-more-sustainable-communities/cost-living-hub

Unbiased: https://www.unbiased.co.uk/pages/hub/cost-of-living-hub

Citizen Advice: adviceguide.org.uk

Local Energy Advice Partnership: https://applyforleap.org.uk/

Trussell Trust for UK food banks: https://www.trusselltrust.org/get-help/find-a-foodbank

The Community Fridge Network (not means-tested): https://www.hubbub.org.uk/the-community-fridge

Stonewall Housing: stonewallhousing.org

Street Link: https://www.streetlink.org.uk/

My Supermarket Compare: https://mysupermarketcompare.co.uk/

Save the Student: https://www.savethestudent.org/save-money/money-saving-resources.html

Tags: budget, Economy, income tax, national insurance, national minimum wage, Pensions, triple lock