At 12.30pm on Wednesday 20th October, 2010 Chancellor George Osborne officially announced details of the Coalition's 'Spending Review'.
At 12.30pm today, Wednesday 20th of October 2010, Chancellor George Osborne announced details of the long awaited 'Spending Review' designed to tackle the UK's budget deficit.
Here are some of the key points that will affect your finances:
| Welfare |
| Social Housing | - New Social Housing tenants will be asked to pay rents equal to 80% of the market value.
- An end to 'home for life' social housing with entitlement to be assessed at regular intervals.
- 150,000 new social homes are to be built over the next 4 years.
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| Employment Support Allowance | - Employment Support Allowance is to be limited to 12 months for certain categories of claimant.
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| Council Funding | - There will be a 7.1% annual cut in council funding.
- Local councils will have more control over council tax benefit from 2013.
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| Tax Credits, Benefits & Allowances |
| Tax credits | - Couples with children will have to work a minimum of 24 hours a week to be eligible for Working Tax Credits.
- The child element of Child Tax Credit will increase by £30 in 2011 and £50 in 2012.
- The basic and 30 hour allowance of Tax Credits are being frozen for three years.
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| Benefits | - The Child Benefit cut for higher rate tax payers has been confirmed.
- Universal pension benefits such as free eye tests, prescriptions, bus passes and TV licences for those over 75 are to remain.
- No change to Winter Fuel Payments and the temporary £25 Cold Weather Payments have been made permanent.
- A Universal Credit System that will replace all working age benefits will be introduced over next 2 parliaments.
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| Allowances | - The mobility component of Disability Living Allowance will be removed for people living in residential care.
- The age threshold for the shared room rate is to increase from 25 to 35.
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| Pensions |
| State pensions | - The planned rise in state pension age to 66 will be brought forward to 2020 for both men and women - six years earlier than planned.
- Savings credits for pensioners are to be frozen for 4 years.
- Final salary pension terms for MPs will end.
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| Scotland, Wales & Northern Ireland |
| Devolved Grants | - Annual grant to the Scottish Parliament to be cut by 6.8% by 2014/15.
- Annual grant to the Welsh Assembly to be cut by 7.5% by 2014/15.
- Annual grant to the Northern Irish Assembly to be cut by 6.9% by 2014/15.
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| Other |
| Public Sector | - The government estimates that there will be 490,000 job losses in the public sector over the next 4 years.
- Regulated train fares will rise by 3% above inflation.
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| TV Licence | - The TV Licence will be frozen at the current rate for 6 years.
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| Tax | - £900 million is to be spent by HM Revue and Customs in an attempt to collect £7 billion in missing tax revenue.
- A permanent levy on the banks is set to be introduced.
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