Autumn Budget 24: Predictions, Insights & Shout Out

What will the UK Autumn Budget Mean for Single People?

Chancellor Rachel Reeves is set to deliver the details on Labour’s First Budget on Wednesday the 30^th of October this year. To say we’re nervous would be an understatement especially after

The Spring Budget earlier this year delivered something of a mixed bag. On the one hand, we saw some positive changes, like a cut to National Insurance contribution rates, new benefits for single parents, and the extension of the Household Support Fund.

Unfortunately, like many budget updates over the years, this year’s Spring budget didn’t offer much good news to single people. Already, Labour has shared that the Autumn budget is going to involve some difficult decisions about tax, spending, and benefits, leaving us to wonder what the impact will be on every UK citizen – including single people.

The Current Situation: Why the Budget Might be Painful

We might have a new government, but the economic challenges the UK has faced over the last few years haven’t gone anywhere. On the 30^th of October, when the Budget speech commences,  Rachel Reeves will be under a lot of scrutiny and we’re likely to hear and so have to face some painful decisions in the short term

WHAT WE KNOW SO FAR

Whilst we won’t have a clear view of how the Autumn Budget is going to impact us until it’s officially announced, the government has already confirmed a handful of upcoming changes. For instance:

Winter Fuel Payments and Energy Costs

The winter fuel payments, shared among single people and families struggling to pay astronomically high energy bills, are changing. Going forward, these payments will only be available to those getting pension credits, or other means-tested sources of support.

To make matters worse, gas and electricity prices have already risen by 10% in England, Scotland, and Wales. That means there’s a good chance you’ll be spending a greater portion of your income on energy by this time next year.

Pension Payment Changes

The state pension is set to increase by 4% in April 2025, to help accommodate the changing cost of living. However, the government may also consider removing certain pension tax reliefs, which could cause serious concerns for people of all ages when thinking about retirement.

Some experts predict that changes will also be made to Inheritance Taxes, which might affect any legacies received by surviving family members and beneficiaries after a loved one’s death.

New Taxes and VAT Payments

Undoubtedly, there’ll be a number of new tax costs to navigate in the year ahead. We know the government is increasing the windfall tax on the profits oil and gas companies make in the UK, although it’s uncertain what kind of impact this will have on energy prices.

Since the Labour government has ruled out any hikes to income tax, employee national insurance, and VAT, they’ll be looking to free up money in other taxes.  As well as Inheritance Tax, this could also include increases in Fuel Duty: While fuel duty hasn’t risen in more than a decade, this could change in 2025. The Labour government has already committed to introducing a ban on the sale of combustion engine cars by 2030, so high fuel costs may underline this decision.

WHAT THE AUTUMN BUDGET WILL MEAN FOR SINGLE PEOPLE 

The Single Housing Challenge

Buying or renting a home is now incredibly tough for all types of households, and arguably even harder for one person households; getting on the housing ladder, rented or buying is really difficult. Getting a mortgage is even more challenging and renting now very often costs more than buying a home leaving it even more difficult to raise a deposit, all in all a vicious cycle for those not unreasonably, wanting their own roof.

So, what will the Autumn budget mean for single people? As usual, even though there’s around 30 million single people living in the UK, they don’t seem to be getting much attention in this year’s budget discussions.

Already, we’ve faced a lot of unnecessary worry,  with the government fuelling some media rumours for weeks by refusing to comment on whether they were considering removing the council tax discount for single people. We now know that this discount isn’t being abolished, but the rumour alone caused significant stress. (Please don’t do this to us again).

On top of that, we have other concerns to think about:

The Housing and Property Issue

First, from a housing and property perspective, the UK Autumn Budget could be disastrous, or incredible for homeowners, people remortgaging, and first-time buyers.

We don’t know yet whether any changes will be made to stamp duty, or whether new support options will be introduced for home buyers. However, according to the Financial Times, those living in England might also see an increase in social housing rents. This could cause serious issues for single people who statistics show are more likely to rent instead of buying a home, due to financial limitations.

Private rents may also increase, particularly as the government considers imposing new charges on rental property owners some of whom may look to pass them on in years ahead.

Plus, according to recent reports, the average mortgage lender will only offer rates based on (an incredible) six times a person’s annual salary. Since the average house price is increasing, this will make buying a home or even remortgaging even harder for single people.

Changes to Income

One potentially positive thing we’ll have to look forward to in the year ahead, is an increase in the National Minimum Wage. The Labour government has committed to creating a “genuine” living wage, by including cost of living considerations in the remit of the Low Pay Commission.

Unfortunately, this won’t have an impact on all of us. Self-employed people, single people who aren’t currently working, and retired individuals won’t see the benefits.

Additionally, it’ll be interesting to see whether the government’s view of a “genuine cost of living” actually looks at the difference between the cost of living for couples and families, and ‘one person households – those living alone.

New Cost of Living Concerns

The cost of living crisis has been a consistent problem for all UK residents, including single people who already struggle with limited resources, and increasing costs.

Unfortunately, it seems like there won’t be a lot of support available to those of us struggling with rising energy bills and food prices in the months ahead. The government may take measures to increase minimum wages, but it’s also planning on cutting certain forms of support.

For those who are retired, already, we know it’s going to be harder for those not in receipt of pension credits to get the winter fuel payments. There could also be changes to Personal Independence Payments too.

New tax adjustments, particularly linked to fuel duty, alcohol and tobacco duty, pension tax relief, inheritance tax, and capital gains tax are also likely. These could all create new cost of living issues for families, and single people – who already spend about 92% of their disposable income on essential living costs.