Following the Spring Budget 2024 yesterday, the Government has issued this summary of key DWP measures set out in the budget. More information about the measures can be found at the following links:
- Spring Budget – Spring Budget 2024 – GOV.UK (www.gov.uk)
- Budget speech – Spring Budget 2024 speech – GOV.UK (www.gov.uk)
- Press release – Chancellor delivers lower taxes, more investment and better public services in ‘Budget for Long Term Growth’ – GOV.UK (www.gov.uk)
- Press release - Chancellor backs British business with pension fund reforms – GOV.UK (www.gov.uk)
Summary of DWP measures
- We are extending the Household Support Fund for a further six months in England, targeting support for those facing the most challenging financial circumstance, including ensuring families with children on free school meals get support outside of term time.
- Across Great Britain, for those who take out a Universal Credit budgeting advance, we will extend the repayment period from 12 to 24 months, giving claimants more of their standard allowance to spend on their priorities.
- We will extend our Additional Jobcentre Support (AJS) pilots in England and Scotland adding an additional Claimant Review point. AJS allows work coaches to spend more time with claimants, helping them become more job-ready and move into work.
- The Chancellor made an announcement on disclosure elements of Value for Money (VfM), ensuring savers have confidence that their pension delivers the best possible value and long-term retirement outcomes and help schemes shift their focus from cost to a more considered and holistic assessment of value for money.
Additional measures:
- VAT threshold: The government will increase the VAT registration threshold from £85,000 to £90,000 on 1 April 2024, keeping even more small businesses out of VAT.
- Growth Guarantee Scheme: The Growth Guarantee Scheme will support UK SMEs to access the finance they need to grow. This extends the support previously offered under the Recovery Loan Scheme to the end of March 2026.
- Changes to the financial promotion exemptions: In order to drive more investment, the government will reinstate the previous eligibility criteria to qualify as a high net worth or sophisticated investor, and will carry out further work to review financial promotion exemptions. Changes to these exemptions will benefit SMEs looking to raise investment from private individuals
- Suite of Simplification Metrics: Tax simplification is a key priority for the government. Today, the government is announcing the suite of metrics that it will use to track progress being made in simplifying the tax system, as well as a range of changes to make it easier for individuals and businesses to meet their tax obligations.
- Digital Technology Package: The digital technology package includes measures relevant for SMEs such as the SME Digital Adoption Taskforce and the AI Upskilling Fund Pilot
- To support households struggling with problem debts, the government is making it easier to access a Debt Relief Order by removing the £90 administration fee from 6 April 2024.
- To ensure successful delivery of the government’s significant expansion of free childcare, we are confirming that the hourly funding rate paid to childcare providers to deliver the free hours offers for children aged 9 months to 4 years will increase in line with the metric used at Spring Budget 2023 for the next two years.
- To further support those in work, from April 2024 the government will raise the threshold for High Income Child Benefit Charge (HICBC) to £60,000 taking 170,000 families out of paying this tax. The rate of the charge will also be halved so that Child Benefit is not repaid in full until you earn £80,000.