Budget: Spring Budget 2024 update

What does the Spring Budget mean for me?

National Insurance decrease for employed

Class 1 Employee National Insurance contributions will reduce from 10% to 8% from 6 April 2024. If you are employed, your income is likely to increase. Please tell us when your income changes unless you receive Universal Credit as the Department for Work and Pensions will let us know. Use our form to update us about any changes that might affect your benefits.

National Insurance Contributions (NICs) for self-employed

The government is making a further 2p cut to the main rate of self-employed National Insurance on top of the 1p cut announced at the Autumn Statement. From 6 April 2024, the main rate of Class 4 self-employed NICs will now be reduced from 9% to 6%. The government will launch a consultation later this year to deliver its commitments to get rid of Class 2 National Insurance fully. From April 2024, self-employed people will not be required to pay Class 2. Those who pay voluntarily can continue to do so to build entitlement to contributory benefits (State Retirement Pension). You do not need to tell us about changes to your National Insurance contributions, as we will take this into account when we review your self-employed income.

High Income Child Benefit Charge (HICBC)

From 6 April 2024, the net income threshold is increasing from £50,000 to £60,000.

LHA rates increase

LHA rates are increasing from April 2024. This will be updated automatically. Visit Local Housing Allowance for more information.

Benefit increase

Working age benefits will increase by 6.7% from April 2024. You do not need to tell us about the increase to your benefit as we will apply the increase automatically. Visit proposed benefit and pension rates 2024 to 2025 for more information.

Pension increase

In 2024/2025, the total yearly amount of the State Pension will be £3,700 higher. You do not need to tell us about the increase to your State Pension as we will apply the increase automatically.

Universal Credit advance payment repayments

The repayment period on budgeting advance loans taken out by claimants on Universal Credit is increasing from 12 months to 24 months. This will only apply to new budgeting advances taken out from December 2024. Visit Universal Credit advances for more information on budgeting loans.

Debt Relief Order (DRO)

From 6 April 2024, the £90 administration fee is being removed. From 28 June 2024, the maximum debt value threshold will increase from £30,000 to £50,000, and the maximum value of a motor vehicle will increase from £2,000 to £4,000. If you are struggling to manage your finances and need support, visit our Financial Inclusion information page.

Household Support Fund

The government is extending the fund until September 2024. We will identify and contact those eligible at a later date. Check the Household Support Fund webpage for updates.