New financial year 2024: what’s changed?

National Living Wage has risen from £10.42 to £11.44 an hour from 1 April 2024. Those aged 21 and 22 are now also eligible to receive it. This could increase the pay packets of those on full-time contracts by more than £1,900 per year.

Most social security (benefits) were increased by 6.7% in April. This means the basic rate of out of work Universal Credit will rise by around £300 a year for a single person aged 25 or over.

Cost of Living Payments that helped lower-income households through the last few years have now finished.

Local Housing Allowance (LHA) determines the maximum amount individuals renting from private landlords can receive in Housing Benefit or Universal Credit Housing Element. This allowance is calculated based on factors such as age, location and the required number of bedrooms.

Local Housing Allowance had been frozen at 2019 levels even though rents have skyrocketed since then. Thankfully, LHA has now been adjusted to represent local market levels providing relief to more than 1.3 million low-income renting households. This means that the maximum support for a three-bed property will rise by £81 per week in Bristol, £62 in South East London, and £51 per week in Glasgow.

National Insurance contributions have been reduced by 2% for employed workers. Self-employed individuals will see a 3% cut. This change is expected to benefit nearly half a million families, with an average gain of £1,260 per family. 

Council Tax rates have increased for the majority of residents in England and Wales. In England, council tax has risen by an average of 5.1% and in Wales, council tax has risen by an average of 7.7%. In Scotland, council tax is being frozen.

Between 1 April to 30 June 2024 the energy price cap is set at £1,690 per year for a typical household who use electricity and gas and pay by Direct Debit. This is £238 lower than the cap set between 1 January to 31 March 2024 (£1,928). The price cap makes sure that prices for people on a standard variable tariff (default tariff) are fair and that they reflect the cost of energy.

Households have also benefited from ​“levelisation” under the Energy Price Cap. This means the standing charge remains the same for both direct debit and prepayment meter (PPM) customers.