Budget: How it will affect you

Chancellor Alistair Darling first budget was short – 51 minutes – but it brought changes to everyone's finances.

Tax rises were recorded for alcohol, cigarettes, fuel, but tax credit and child benefits changes will bring more cash to families to reduce child poverty.

Drivers will be slightly gladdened to hear the 2p fuel tax rise for April is postponed to October, but a further 2p increase will come in next year.

Alcohol duty rises will see 4p a pint increases for beer, 14p for a bottle of wine, and 55p on a bottle of spirits.

A shake-up of vehicle excise duty is also set for 2009 – to see more polluting cars paying more tax and less polluting cars costing less.

On the giving side – housing and council tax credits will rise by £17 a week and child benefit will rise to £20 a week for the first child.

It is estimated a family with two children will be £130 better off – with a total of £765 million extra spending in 2008 to take 250,000 out of poverty.

Although no direct legislation is being put in place – energy firms are being lent on to cut bills for prepayment meter customers, currently paying £255 for gas and electricity than those paying by online direct debit, to increase social tariff spending aiding those on lower incomes from £50 million to £150 million.

Winter fuel payments for the over 60s will rise to £250 and to £400 for the over 80s – aiding nine million pensioner households.

In housing stamp duty will not be paid on shared ownership properties until 80 per cent of equity is owned, while a new shared equity scheme for keyworkers will be brought in allowing them to buy a 50 per cent share of a home instead of the current 75 per cent.

The key winners for the budget seem to be lower income families and pensioners.

Pensioners

Low-income pensions should see pension credits guaranteeing a minimum weekly income of £124, while 600,000 pensioners will be taken out of paying income tax.

All pensioners will see rises in winter fuel payments next year, to help offset the recent energy price increases.

Families

Families with one child in full-time work should be guaranteed a minimum weekly income of £292 from October – with Family Credits and Working Tax Credits.

Those in part-time work – loan parents and couples – should receive a minimum of £229.

As previously announced from October 2008, lone parents whose youngest child is aged 12 or over will lose eligibility to income support solely on the grounds of being a lone parent. Instead they will receive jobseekers allowance and be expected to seek work.

To help them into work new 'in work' credits will be introduced.

Increases in child benefit and child tax credit will also help low to middle income families. Child benefit will also be not counted in income calculations for housing and council tax benefit – providing an extra £17 a week.

Tax changes for all

The last Budget saw tax cuts on the basic rate from 22p to 20p to come into effect in April. The lower 10p rate will be abolished meaning those on lower incomes may find their tax bills rising.