Money expert Martin Lewis has addressed the disappointing elements missing from Chancellor Rachel Reeves’ Budget.
Martin took to social media this afternoon to give some instant analysis of what he made of the Labour budget announced on Wednesday – and crucially, what was conspicuous in its absence, too.
The MSE founder took his followers through the changes and set out what it means for people.
Martin first spoke of the decision to lower the thresholds for employers to pay National Insurance tax on their staff.
He said: “That is a big hit to many employers although smaller employers will see an increase to their allowance.
“Currently you start paying at £9,100, if you drop that to £5,000 at a 15% rate, just on that difference alone that’s £615 more per year per employee.
“Somebody is going to have to pay for that, it will either come out of profits, increased cost to consumers or reduced salary and benefits in future for employees.”
But he then discussed the increase to minimum wage, adding: “Next, to counter that to an extent the minimum wage is going up next April. That is an above inflation 6.7% rise.
“If you’re on the minimum wage make sure this happens next April.”
In the budget it was announced that if you’re buying a second home, the extra stamp duty is rising from 3 percentage points to 5 percentage points.
The thresholds of when you start paying were due to drop next April and that is being continued.
From next April you will be paying Stamp Duty on properties worth £125,000 or more, currently it’s £250,000 or more, Martin said.
Martin also added that Inheritance Tax will apply to pensions from 2027.
But the Money Saving Expert founder added that several important issues have not been addressed in this budget, namely Lifetime ISAs, mortgage prisoners, WASPI compensation and Winter Fuel Payments among others.
He said: “I haven’t been able to talk about the fact they haven’t made announcements about lifetime ISAs or mortgage prisoners or WASPI compensation or student maintenance or mitigation for Winter Fuel Payments but I’ll be doing those on social media and doing those on my show tomorrow.”
Winter Fuel Payments is about the fact pensioners have lost their £300 Winter Fuel Payments unless they’re on low-income benefits, while Lifetime ISAs is a push to increase the house price threshold to buy a house without paying a penalty, while WASPI women have been campaigning for compensation for the state pension age being increased.
