MARTIN Lewis has responded to the Autumn Budget and highlighted the changes he had previously flagged.
The Money Saving Expert founder reacted to the tirade of tax hikes in what is the most punishing squeeze since the war, to pay for welfare spending.
Among the major announcements include abolishing the two-child benefit cap, freezing income tax thresholds until 2030, and a cut to salary sacrifice schemes.
The Money Saving whizz also previously wrote to Reeves asking her to strengthen regulator Ofcom’s customer protection rules.
This comes after network provider 02 told punters its bills could spike by 40 per cent.
Lewis claimed the mobile company may have “circumnavigated” customer protection rules and demanded she look into it.
In today’s announcement, the Chancellor said the Government would be “working alongside Ofcom to ensure customers get a fair deal and are able to switch provider easily” and wrote to the regulator asking them to review the “suitability” of its rules.
Martin laid out the changes on the elements he previously raised the alarm on, including Reeves’ decision to slash energy bills by £150 under plans announced in the Budget to help ease the cost of living for households.
“Both gas and electricity unit rates will be reduced, but the reduction will largely be seen on electricity bills,” the Money Saving newsletter said.
The finance expert previously urged the Government to make sure the switch was extended to consumers on fixed energy tariffs.
Following today’s Budget announcement, the government will not be extending the cut to fixed energy bills users.
Martin also previously expressed his concerns over cuts to the ISA threshold, but admitted the switch up “isn’t as bad as it could’ve been”.
The Chancellor cut the amount savers can stash away tax-free into Cash ISAs from £20,000 to £12,000 per tax year.
The move will push savings into the UK stock market and also raise money for the Treasury.
Currently, Cash ISAs are far more popular than Stocks and Shares.
“Importantly, however, your overall ISA allowance – the amount you’re able to contribute across different ISAs in one tax year – will remain at £20,000, regardless of age,” the newsletter added.
“This means you could save £12,000 in a cash ISA and an additional £8,000 in a stocks & shares ISA, for example.”
TAXING TIMES
Hard-working Brits face a tirade of tax hikes as Rachel Reeves attempts to balance the books despite splashing record cash on benefits.
The Chancellor used her Budget speech, which was leaked early, to unleash a £26billion tax raid affecting millions of workers and pensioners.
But her package will see welfare spending soar to £9billion after confirming the two-child benefit cap will be scrapped.
A tourist tax on visitors staying in hotels, B&Bs and guesthouses across Britain was also confirmed as were higher taxes on cigarettes, booze, sugary drinks and flights.
From a freeze on income tax thresholds to a raid on salary sacrifice schemes and tax hikes on cigarettes and booze, Reeves’ fiscal plan didn’t provide a lot of relief for workers.
But she did include some giveaways to households in her attempt to ease the cost of living pressures made worse by rising inflation pushing up everything from grocery bills to energy costs.
‘Biggest Budget shambles’
Expert analysis by The Sun’s Political Editor Jack Elsom
WHAT we are currently witnessing is without precedent – and the biggest Budget shambles in history.
In an extraordinary clanger, the OBR has accidentally published the entirety of Rachel Reeves’ measures half an hour before she was due to deliver them.
The Budget is meant to be top secret until the Chancellor delivers her speech because so much of it is market sensitive.
Not only that, but the leak has stolen Ms Reeves’ thunder given we now all know what she is about to announce.
It is a bungle for the ages and one that will forever haunt the Treasury memory.
