Last week, the Chancellor Rishi Sunak announced the 2021 Budget, which outlined a number of plans for the UK’s economic recovery following the coronavirus pandemic. In this blog post, Citizens Advice Bury and Bolton outlines what the key announcements mean for local residents.
If you need any information or advice following the 2021 Budget, please contact our advisers on 0808 278 7804 or visit our website.
Universal Credit uplift extended
The £20 a week uplift to Universal Credit, first introduced in March 2020, has been extended for a further 6 months. This means the uplift is now planned to end in August 2021.
While the extension to the uplift will surely come as a relief to low-income families in Bury and Bolton, we continue to call on the government to #KeepTheLifeline and commit to a permanent uplift to Universal Credit.
One-off payment for Working Tax Credit claimants
Claimants of Working Tax credit will be given equivalent financial support over the next 6 months. This will be in the form of a £500 one-off payment to all claimants. We continue to call for a permanent uplift to Working Tax Credit, to help low-income residents of Bury and Bolton.
Furlough scheme extended
The furlough scheme was due to end in April 2021, and has been extended for a further 6 months. It is now due to end in August 2021. This means that anyone on furlough from employment during the next 6 months will receive 80% of their salary from the government, up to a maximum of £2,500 per month.
More support for the self-employed
The fourth payment under the Self-employment Income Support Scheme will cover February to April. During this period, the government will pay up to 80% of average monthly profits to eligible self-employed people, up to a maximum of £2,500 per month.
The fifth payment under the scheme will cover May to September and will be the final installment. Its size will depend on the amount of turnover lost during this period.
House buying support extended
The temporary stamp duty holiday has been extended until 30 June. This means that buyers pay no stamp duty on the first £500,000 of a house purchase. This will reduce to no stamp duty on the first £250,000 of a house purchase from July to September, before rates return to normal in October.
The government also plans to underwrite 95% loan-to-value mortgages (up to a property value of £600,000), which could be a help for first-time house buyers. These new mortgage deals are expected to be available from April.