Today’s budget announced the following changes to the benefits system:
The two-child-limit in Universal Credit is to be scrapped with effect from April 2026.
The removal of this nasty, cruel, unnecessary, misogynistic rule is welcome, but it’s not a panacea; since the benefit-cap will continue to restrict the entitlement of many women with children.*
The triple-lock on state pensions will be maintained, allowing an increase of 4.8% from April 2026.
So, the New Sate Pension for people who got to pension age after April 2016, will be increased from £230.25 to £241.30 per week.
Other benefits will (probably) be increased by just 3.8% although there are some above-inflation increases planned for the Universal Credit Standard Allowances
The minimum wage for 18-20-year-olds will go up from £10 to £10.85, and the living wage for people aged 21 or over will go up from £12.21 to £12.71.
The Motability Scheme in which you can lease a car with your PIP-Mobility-Component or DLA-Mobility-Component is to be changed, to charge VAT on higher value cars, and to reduce help with insurance costs.
Tax and National Insurance rates are to be frozen, but so is your tax-free and NI-free personal allowance. In real terms this means a small tax increase for most ordinary working people.
* The benefit cap also affects men. But since most people caught by this rule are parents, and most lone-parents are women, it is in effect, straightforwardly misogynistic.