A Summary of The Budget 2009

by Daniel Calloway
The Budget 2009

At 12.30pm on Wednesday 22nd April, 2009 Chancellor Alistair Darling officially announced details of 'The Budget 2009'.

At 12.30pm today (Wednesday 22nd April, 2009), Chancellor Alistair Darling announced details of The Budget 2009. 

We have summarised the changes that will have the biggest impact on most of our finances in the table below. 

Savings, Investments & Pensions
ISAs
  • The total annual ISA limit will be increased to £10,200
  • The cash ISA allowance will be increased to £5,100
  • These increases will be introduced this year for individuals over the age of 50 and next year for everyone else
Pensions
  • Guaranteed increase in basic state pension by at least 2.5%
  • Winter fuel allowance increase (£250 for those over 60 and £400 for those over 80) has been extended for another year
  • Pension credit limits will be increased to £10,000 from November, 2009
   
Tax
Income Tax
  • There has been no change in the current tax bands for those earning less than £150,000
  • From April 2010 income tax will increase to 50% for those who earn more than £150,000
  • From April 2011 pension tax relief will be restricted for those with incomes over £150,000 and will be gradually tapered to the 20% applied to lower earners
  • Personal allowances for those who earn more than £100,000 will be withdrawn from April 2010
   
Alcohol & Tobacco
Alcohol
  • Alcohol duty will increase by 2% from midnight tonight
Tobacco
  • Tobacco duty will increase by 2% from 6pm this evening
   
Transport
Transport
  • £2000 discount on new cars when part exchanged for a car over 10 years old
  • This scrappage scheme will be introduced next month and will run until March 2010
  • Fuel duty will increase by 2p per litre in September
   
Tax Credits, Benefits & Allowances
Tax Credits
  • Child element of child tax credit will increase by £20 from April 2010
Benefits
  • Additional £100 a year government-funded contributions to child trust funds for children with disabilities
  • Additional £200 a year child trust fund contributions for children with severe disabilities
Allowances
  • Statutory redundancy pay will increase to £380 a week
  • Grandparents of working age that care for their grandchildren will see this count towards their entitlement for the basic state pension
   
Employment
Employment
  • £1.7billion funding for the Job Centre Plus network
  • Additional support for those who have been out of work for more than 12 months
  • Guarantee that from January everyone under 25 who has been out of work for more than 12 months will be offered a job or a traineeship
  • £260million funding for training and subsidies to help young people get the skills and experience they need
  • £250million funding in 2010 & £400million in 2011 to fund college places for 16 and 17 years olds
   
Housing
Mortgages
  • The higher level of support available to homeowners who are out of work provided by mortgage interest schemes will be maintained for an additional 6 months while they look for a new job
  • UK banks will increase the availability of mortgage lending by around £20billion by the end of the year
  • Additional £80million funding for Home Buy Direct, the government's shared equity mortgage scheme
Housing assistance
  • £500million extra financial support for housing projects that have been stalled due to the credit crunch
  • £100million funding for local governments to build energy-efficient housing
  • £50million funding to accelerate the modernisation of housing for those in the armed forces
Stamp duty
  • Stamp duty suspension on properties sold for less than £175,000 extended until the end of the year
   
Environment
Environment
  • £1billion of funding to combat climate change
  • 34% cut in carbon emissions by 2020
  • £435million support for energy efficiency in homes, schools and public buildings
  • £525million support for offshore wind projects
  • £4billion funding for renewable energy projects in UK
   
Get more your life guides like this every week.
Enter your email and name below to join over 460,000 other members who benefit from our invaluable guides each week.
your email
first name
Add

Add a comment.

(optional)
Name:
Comment:

You have 1000 characters left
 
Please enter the characters to the right
 
 
33

Your Comments

antonio
on 24 Mar 2010 22:02
there is nothing in the budget on how to handle the economy just more taxes for somebody and some benefit to others but I do not see the light through the tunnel.
 
ANN
on 28 Apr 2009 19:45
I THINK ITS TIME ALL CARERS HAD A DAY OUT AT NO 10. I WONDER HOW MUCH IT WOULD COST MR DARLING FOR THAT ONE DAY OUT.HE WOULD HAVE TO PROVIDE THE CARE FOR ONE DAY OF EVERY PERSON IN THE UK BEING LOOKED AFTER ONLY IF
 
FROM ALL THE CARERS
on 28 Apr 2009 19:27
may I say once again nothing for carers again it does amaze me when the law says people must have a certain amount of money to live on what about us that have given up our jobs to look after a member of family I am sure we are worth more than £53.10 a week . for a 168 hours a week . think 0.3p an hour is fair deal for any one.thank you MR darling .I wonder how many carers are are out there saving MR darling trillions
 
pete
on 28 Apr 2009 18:30
Absolutely nothing for thev retired who depend on interest on savings - the return has been decimated and is STILL TAXED. There could have been a concession for the over 60's. As it is, many would be better off blowing their savings on a good holiday and then being eligible for pension credit.
 
Ian Hill
on 28 Apr 2009 17:22
Well as per usual the working man is out of pocket again. Why not make free bus passes for the elderly means tested as the elderly are much richer then the low paid
 
Elizabeth Davies
on 28 Apr 2009 13:37
This Budget has done very little for the pensioners, especially those without the benefit of occupational pensions, but it has to be said that it is a step in the right direction. Given the lack of job opportunities for anyone over 50, and even less for those of over 60, would it not be sensible to increase the earnings limit tax allowance for people at 60 and thus encourage more people to retire leaving more jobs available for the younger generation?
 
Matthew Thomas
on 27 Apr 2009 22:15
They are going to guarantee anyone under 25 a job or apprenticeship if they have been out of work for 12months +...how? who are going to employ these people? everyone is going bust.... oh yes lets tax the higher earners (business owners) so they have less money...then they will be able to employ more staff... NOT. What are these people doing?? We're all screwed ...
 
Niall Simpson
on 26 Apr 2009 09:24
We need new nuclear power stations NOW!!! (or disaster will strike).
 
Sue
on 25 Apr 2009 21:40
My husband is a junior level nurse, and not on a high salary. My mother is 84 with savings and a small pension my father saved for from his earning as well as the state pension, She lives alone and has all the household bills to cover. I have had to give up work to be her sole carer. I have saved all my life, She receivces no pension credit or benefit due to her pension and savings i receive a carereers allowance and no there benefits. Families are important but as a couple we make few demands yet receive no benefits and seem to be penalised in every budget. Fuel increase, alcohol and no tax level increase just means we are once again worse off!!!!!
 
maureen
on 24 Apr 2009 13:52
Fiddling while Rome burns. Labour does it again. Bankrupt for another generation.
 
thomas bowden
on 24 Apr 2009 11:55
If they [the goverment] introduce the £200 rule JUST for turning up will the average person get the same just for turning up for work - by that I mean everyone who works??
 
Beverley Jory
on 24 Apr 2009 00:50
I have been on Incapacity Benefit now for over a Year, I get £166 fornightly. When will the ones that are genuinely ill receive cold weather payments as do the pensioners? When will our money go up to a decent sum? I do not think this is fair on us.
 
john s
on 23 Apr 2009 20:02
i wish he would take the VAT of the Gas and Electric and Water to help make utility bills smaller, i know its only 4% but every penny would help.
 
Ann Newby
on 23 Apr 2009 16:26
no thought to small businesss at all. rubbish this government could not run a christmas club
 
Annie Sergison
on 23 Apr 2009 13:24
i dont believe that this budget has common sense or does this country justice the level of debt that all of us will incurr is astronomical even if this government is replaced the next government will face a hugh challenge which has unfairly been placed on their shoulders and so, how can they fix the mess that thisgovernment has created for us all im not in politics but a hard working individual of this country the harder you try to work and support your family the harder you are penalize but people who are out of touch with reality because the jobs they do in politics are protected by hugh pay, pensions and earnings that increase with each year while the rest of us see squaddering, corruption and exploitation and mis- funding of our money the tax payer.Increasing fuel prices is unjustifiable people have to get to the few remaining jobs they have and the public transport is a joke especially in rural areas
 
Anne
on 23 Apr 2009 13:06
I think the duty on cigarettes and alcohol should be increased to make almost impossible for people to afford getting drunk and drawing on the limited NHS and police resources. Almost to stop people smoking - again affecting their health and those who live with them and again drawing on NHS limited resources. Increase the duty by 100% or more.
 
Graham Singleton
on 23 Apr 2009 00:55
It is stupid to scrap a perfectly good car, then burn more oil than that car will consume for the rest of its life just to build a new one. The sum that matters is true cost, not money cost. In other words true value of materials and energy, the $ bill cost is of no importance, anyone can print more dollars Graham
 
charles ibeh
on 23 Apr 2009 00:31
i think it is resonable for higher earns to pay more. i no that we the motorist always be the target by add money on products without pay increase for we lower earners which i found as unfair.
 
Allan MacArthur
on 22 Apr 2009 22:41
It is a reasonable attempt to meet the current situation.More in the way of job creation would have been a help to get people into work especially in work that is desperately needing to be done in the road system in the country.However the borrowing is a very worrying factor and especially if some of the anticipated forecasts fail to materialise.
 
Frances Davis
on 22 Apr 2009 19:56
What can one say! On the one hand those who can afford to save will be able to put more into ISA's but the reality is that those who earn more are going to be penalised, are we going to see people manipulate the system to earn less than £150,000 so they will be better off? These are the people who will spend the money! The benefits are ill thought out, my daughter made redundant in December asked if she could go on a training scheme to help her prospects of gaining employment only to be told she had to be unemployed for a year, something is wrong with that. This budget takes far more than it gives. The shared Home Buy Direct is also manipulating people; my advice is to see a good solicitor before signing up to one of these incentives which could cost you a fortune. A terrible budget for everyone, I am able to advise Alistair Darling on basic household management, for two years we lived on an extremely low wage but cut our cloth to suit, we never became overdrawn because we budgetted!
 
Auriol
on 22 Apr 2009 19:08
I would have liked the level at which tax starts to be paid to have been increased.
 
sandy martin
on 22 Apr 2009 18:52
has anything happened to dla and carers allows
 
teresa
on 22 Apr 2009 18:45
What a terrible budget again !!!all they worry about is green LET THEM think oaps who are often cold and cannot afford to keep heating on. The pension when will they get the extra???? . let them cut back on £200.00t they intend to award themselves and compare what they are giving ito others .this is the worse govenment since the last labour govenment they take fo rthemselves,they tell you to ride on a bus do they no they ride around in big gas guzzling cars . They say dont fly apply to them bet your sweet life it dosent they fly first or business well they have to work on the journey so do others but they are not priverlegded like the pampered elite of labour . this budget benifits them alone i would respect them more if they said we get no perks as the electorate cant due to our mess ups. we will travel on buses all the time to show aothers we lead. they will announce cuts in cheaop food cheap beers etc to say wqe are suffering also , we will stop the big payments we geten
 
God
on 22 Apr 2009 18:27
I think that it is a lot of rubbish again!
 
Michael
on 22 Apr 2009 17:33
Smoke and mirrors telling everybody that things will get better. Only when they are booted out. We know, they know and they know we know!!
 
Keith Townsend
on 22 Apr 2009 17:21
Top earners should be hit harder the average person in this country is trying to live off the crumbs that are falling off the plate whilst the people who have the actual slices of cake are able to live off their expenses and not even touch their wages it's immoral this includes all MP's.
 
Katrina Meyrick
on 22 Apr 2009 17:18
This is an absolutely appalling BUDGET as we as a Country are already in enough debt without having to go further in the red. The chancellor has done nothing to give us confidence that the economy will recover, he has not even attempted to get people back to work. And where is the money coming from to supposedly help the economy. as usual out of our pockets again, The rich are still getting richer at our expense by this I mean tax releif on foriegn properties. I am one of the unemployed desperately trying to find employment he has not even had the decency to offer us proper help. Its about time this Government realised we are sick of their lies. Because the British people deserve a better deal than what they are getting. I have applied for over 500 jobs in 6 months and not had more than 5 interviews with 2.1 million unemployed where is the money coming from to re-train people especially when the country is in this mess. Stop treating the British people like idiots.
 
Marianne Martyn
on 22 Apr 2009 16:43
The government is bankrupting future generations to pay for their failures.
 
kath
on 22 Apr 2009 16:42
Putting alcohal and cigs up immediatley will be another nail in the coffin for the working man and our local pubs!What will Darling be giving to the normal working class as per nornal NOTHING what a surprise
 
tel911
on 22 Apr 2009 16:10
we have seen our house values diminish , our savings depleted and our pension funds destroyed yet once again joe average gets kicked when he is down if we drink or smoke to help us through the bad times we will pay more and if you are a motorist as well tough luck you're petrol will cost more the "great" has gone out of britain no wonder the immigrants are going home
 
Mary Dyer-Atkins
on 22 Apr 2009 16:06
Overall a better budget than I was expecting. As a Pensioner 2.5% increase in pensions is acceptable and the extention of the winter fuel allowance is good. However, I do not beleive the state pension to be enough and should be linked to wages, but feel in the present climate it was to much to hope for, so overall feel satisfied, but will keep campaining.
 
Keith
on 22 Apr 2009 15:50
Fuel duty will increase by 2p per litre in September: This should be suspended and other means of funding found. Child element of child tax credit will increase by £20 from April 2010 Additional £100 a year government-funded contributions to child trust funds for children with disabilities Additional £200 a year child trust fund contributions for children with severe disabilities £500million extra financial support for housing projects that have been stalled due to the credit crunch £100million funding for local governments to build energy-efficient housing £50million funding to accelerate the modernisation of housing for those in the armed forces £1.7billion funding for the Job Centre Plus network Additional support for those who have been out of work for more than 12 months £250million funding in 2010 & £400million in 2011 to fund college places for 16 and 17 years olds All these should cancelled so funds can be spent on more important projects
 
linda hall
on 22 Apr 2009 15:32
I have difficulty understanding why the duty on petrol has gone up £ 0. 2p per litre when that means many small businesses will suffer as a result. Also so many people I know cannot afford to live where there work is and have to commute, which means that their low incomes will be hit by this tax as no allowance has increased for low wage earners.