Budget 2015: Disposable income up as plans to help savers are announced
It was an upbeat Budget announced by George Osborne, as he revealed that households on average will be around £900 better off in 2015 than they were in 2010.
This is great news for the UK as a whole, further evidenced by the news that since 2010, 1,000 more jobs have been created every single day.
But the key question is: will the Budget help us to build on that?
The points made by Osborne suggested yes. Measures announced will lead to greater opportunities for pensioners, an increase in the personal tax allowance, an increase in the national wage and help for savers, especially those people among us looking to buy their first house.
Osborne noted that the Budget takes another step to move Britain from a country built on debt, to a country built on savings and investment, announcing several opportunities for savers, such as giving five million pensioners access to their annuity, the introduction of a more flexible ISA, the launch of the Help to Buy ISA and the introduction of a new Personal Savings Allowance which Osborne claims will take 95 per cent of taxpayers out of savings tax altogether.
So, what will this mean?
Overall, it will mean that a cross section will be better off, in general terms. The increase in minimum wage and the increase in tax-free personal allowance (set to rise to £10,800 next year – and then to £11,000 the year after) will help take almost four million people out of income tax altogether.
Hopefully, these moves will help to get more households out of debt and deliver a more stable and secure economy for all of us. Getting levels of debt at a personal, corporate and government level under control continues to be a key focus and challenge for the UK as a whole.