Budget 2009 and your finances
Wednesday, 22 April 2009 12:59
Wednesday's Budget outlined a number of targeted measures to help savers, pensioners, homeowners and people struggling with debt with their finances.
HOMEOWNERS
'Repossessions' Prevention Fund created'
A new fund has been established which will provide small loans to homeowners or tenants facing repossession. It will be administered by Local Authorities.
'Mortgage Rescue Scheme expanded'
The scheme, which helps vulnerable households facing repossession, will be expanded also cover those in negative equity as a result of a fall in house prices. It will come into effect on May 1st.
'Introduction of the Homeowners Mortgage Support Initiative'
This was announced on Monday just ahead of the Budget. The HMS will enable eligible borrowers who suffer a temporary loss of income to cut their mortgage interest payments for up to two years to help them get back on track with their finances.
For more information on HMS go to www.direct.gov.uk/hms
UNEMPLOYED & THOSE IN DEBT
'Social Fund gets extra funding for interest free loans'
An additional £260million will be made available over two years to meet demand for interest free loans for people in times of financial difficulty. It will be available through Jobcentre Plus.
'Growth Fund to get extra funding to help people in debt'
A further £18.75m is being provided to help people on low incomes obtain affordable credit and banking services through credit unions and other community-based institutions. This will help to prevent people sinking into a spiral of debt and being driven into the hands of loan sharks.
FIRST-TIME BUYERS
'Stamp Duty holiday extended'
To help first-time buyers the holiday on stamp duty on purchases of properties under £175,000 is to be extended to the end of the year.
'£400 million to boost private sector house-building'
This will help to deliver 9,000 additional homes, all of which will start on site in 2009-10. This will include up to 5,000 homes to help first time buyers, including the option to rent now and buy later, and up to 1,000 social rented homes.
PENSIONERS
'Pension credit increased to £10,000'
This has been introduced in response to the potential impact of falling interest rates on pensioners with savings. The capital threshold in Pension Credit will be increased from £6,000 to £10,000 from November 2009. The £10,000 limit will also be implemented for pensioners entitled to Housing and Council Tax Benefit. The average gain for eligible pensioners will be around £4 a week, with those on the lowest incomes possibly gaining up to £8 a week.
'Winter Fuel payments go up again'
Originally announced in the 2008 Budget 2008, this will continue next year. In winter 2009-10 households with someone over 60 will receive £250 and over-80s households £400.
'State pension increased'
The State Pension is guaranteed to increase by at least 2.5 per cent next year.
SAVERS
'ISA limits to go up'
Ten years after they were introduced, the annual tax-free savings limit will be increased from £7,200 to £10,200 for over-50s this year, including half in cash, and available to other savers from next year.
CAR OWNERS
'£2,000 car scrappage scheme introduced'
The scheme will be introduced next month enabling people to get £2,000 towards a new, less polluting car or van under 3.5 tonnes if they trade in another vehicle over 10 years old.
Fuel duty
From September 1st, petrol duties are set to rise by 2p per litre - then from April 2010 the tax on fuel will rise by 1p per litre over the rate of inflation.
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