06 March 2024 , 14:25
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Martin Lewis expressed "disappointment" no changes were announced in the Spring Budget to Lifetime ISAs penalties for first-time buyers.
The money guru, 51, had been campaigning for the amendment, which affects anyone who wants to purchase a home for more than £450,000. Jeremy Hunt, Chancellor of the Exchequer, made no reference to this in the House of Commons.
His change to Child Benefit, though, have been welcomed by Mr Lewis, who had argued the current state of play is unfair to single income or single parent families. The Chancellor said the rates will change from £60,000 and the higher rate to £80,000. This means your Child Benefit will only start to be tapered away when you earn £60,000 or more.
This will come into force from April. Currently, Child Benefit is paid to someone who is responsible for a young person under the age of 16, or under 20 if they're in approved education or training. If you or your partner earn less than £50,000 per year, you can claim the full amount of Child Benefit - but once one of you earns over £50,000, you have to pay some of your Child Benefit back under the so-called "High Income Child Benefit Charge".
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Martin Lewis issues 8-week warning to phone users ahead of huge price hikes
The Chancellor of the Exchequer presented the budget statement in the House of Commons (PRU/AFP via Getty Images)Writing on X, formerly known as Twitter, Mr Lewis said: "Chancellor tipped me off before budget, said this was due in large to MSE (Money Saving Expert)/my shows campaigning all based on all those of your who messaged me to say it was the key thing to put to him."
He added: "So 1) From this April threshold which hasn't moved since 2013 rises from a single parent earning £50,000 to £60,000 and you lose child benefit totally at £80,000 (not £60,000) 2) Consultation on moving it to family income not individual income and hopefully that'll be in place from April 2026 (this is to stop unfairness for single income/single parent) families."
But the journalist, who founded Moneysupermarket.com group and sold it for up to £87million in 2012, was unhappy the rule around ISA penalties for first-time buyers was not abolished. He added, again on X: "Chancellor told me just before the budget he said the reason he's not doing it - 'I wanted to do a big home ownership package but that doesn’t work until property prices are definitely rising and I still have to keep an eye on overall borrowing.' He also told me: 'I want to do more than remove the penalty. I want to reform LISAs.' I am of course disappointed there are no changes this time, but at least it is not off the table."
Mr Hunt also announced a slew of desperate tax cuts after 14 years of "Tory economic failure". In front of howling Tory MPs. The Chancellor extended the freeze on fuel duty for the 14th year in a row, while Alcohol duty will remain frozen until February 2025. Meanwhile, millions will take home more pay after another National Insurance cut, with Class 1 contributions being reduced to 8% from this April.
But the Chancellor's Budget could make or break struggling families as cuts to National Insurance and freeze fuel duty were previously blasted by Labour. Shadow Chancellor of the Exchequer, Rachel Reeves MP, said the statement "should be the final chapter of fourteen years of Tory economic failure".