What does the Autumn Budget mean for me?

The Autumn Budget is an update from the Government about the state of the economy, which often includes information about spending and tax decisions. The announcements set the Government’s intentions for the coming months and years, with references made to the latest forecasts from the Office for Budget Responsibility (OBR).

The Autumn Budget was delivered by Chancellor Rachel Reeves at 12:30pm on Wednesday 30 October 2024. Find the Autumn Budget summary below and learn what it means for you.

The Government committed to reducing the maximum rate of deductions that can be made from Universal Credit payments; it’s currently 25% but will be reduced down to 15%, with households expected to be better off by an average of £420 per year. 

It was also announced that in April 2025, working-age benefits will rise by 1.7%, in line with inflation. This means that around 5.7 million families on Universal Credit will gain an average of £150 annually.

The National Living Wage, which is the legal minimum for people aged 21 and over, will increase by 6.7% from £11.44 to £12.21 an hour. This will boost pay for three million workers. For an eligible full-time worker, this is equivalent to £1,400 a year. 

The National Minimum Wage for 18 to 20-year-olds will also rise from £8.60 to £10.00 an hour.

For carers wondering how the 2024 Autumn Budget will impact them, the weekly earnings limit for Carer’s Allowance will be increased to 16 hours at the National Living Wage, which is worth an extra £45 a week from April 2025, making over 60,000 carers eligible for support. This will help carers have more flexibility and balance work and caring responsibilities. 

During the 2024 Autumn Budget announcement, it was confirmed that the Government will maintain the State Pension Triple Lock. There will be a 4.1% increase to the basic and new State Pension as well as the standard minimum for Pension Credit, from April 2025.

Billions more pounds will be given to the Department for Education. This £6.7bn will help to rebuild schools, employ teachers, and give an uplift in funding for special educational needs (SEND) settings. 

As part of the 2024 Autumn Budget, Rachel Reeves also announced that the Government will be tripling the investment in breakfast clubs, which will help in their mission to combat child poverty.

Although single bus fares are increasing, it will be capped at £3 until the end of 2025, which will particularly help people who live in rural areas.

Although we saw some positive commitments from the Chancellor, Rachel Reeves in the Autumn Budget 2024, it wasn’t enough. Millions of people are still facing a deficit budget, with low incomes that simply aren’t enough to cover the costs of essentials. 

Changes to Universal Credit deductions and increased funding for breakfast clubs are positive steps, but they don’t fully address all aspects of poverty. Many people, especially those with disabilities or caring responsibilities, can’t rely solely on employment and with social security still low, people are being left in impossible positions.

At CAP, we want to do something about it.