Changes For Household Finances in April 2021
There are a number of changes that may affect your household finances taking effect in April 2021 including tax rates, increases to household outgoings and changes to COVID related loan repayments agreements. Please see below an outline of some of the pending changes.
Support Measures
- During the COVID pandemic, repossessions of homes was prohibited. The Financial Conduct Authority has said that mortgage providers can now repossess homes from borrowers unable to make payments.
- You will no longer be able to apply for a deferral on mortgage, loan or credit card repayments.
- Applications for a new Help to Buy scheme in England are now being accepted.
Household Bills
- Council tax bills in England and Wales will rise by an average of 4.4% to £1,898 for band D properties.
- Prescription charges in England will rise 20p to £9.35.
- The cost of a TV licence will rise £1.50 to £159.
- Car tax will rise but will be dependant upon car emissions.
- Water bills are set to be reduced on average falling £2 to £408 a year although some providers are actually increasing the cost per year.
Financial Changes
- Income tax thresholds will rise from £12,500 to £12,570 and the higher rate threshold from £50,000 to £50,270.
- The rise in the personal allowance means marriage allowance will rise very slightly from £1,250 to £1,260.
- There will be a rise in the full flat-rate state pension from 2.5% or £4.40 a week to £179.60 per week.
- Child benefit is rising to £21.15 for the first child and £14 per week for subsequent children which is an increase of 10p and 5p respectively.
- There will be an increase in the National Living Wage of 2.2% to £8.91 an hour and will now start at the age of 23 instead of 25.
- The Lifetime Isa(individual savings account) charge for accessing money before the age of 60 (for any reason other than to buy your first home) reverts to 25%. Early in the pandemic It was cut to 20%. From 6 April, if anyone accesses the money early, the penalty will include some of their own savings too.
