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Budget - March 2017

Summary of the key welfare benefit-related measures announced in the Budget on Wednesday 8 March 2017

Please note: The measures announced could be subject to further change.

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There were no new changes to Welfare Benefits announced in the Budget. However, there are changes previously announced which will be introduced this April.  We have further information on these on our Benefits Changes Timetable 2017.

Below we list the key related measures announced in the Budget.

Universal Credit

  • The Chancellor confirmed that the taper for earnings for Universal Credit will be reduced in April from 65% to 63% as previously announced. This means that claimants will be able to keep 37p for every £1 earned in work above work allowances rather than 35p for every £1 earned.

Pay

Tax and National Insurance

  • The main rate of Class 4 National Insurance contributions paid by the self-employed will increase from 9% to 10% in April 2018 and to 11% in April 2019.  This is to reduce the difference in national insurance rates paid by the self-employed and employees, and to reflect the introduction of the new State Pension to which the self-employed have the same access as employed people.
  • The personal allowance on income tax will rise to £11,500 in April and rise to £12,500 by 2020. 

Childcare

  • From September 2017, the free childcare offer will increase from 15 to 30 hours a week for working families with 3 and 4 year olds in England.   This is in addition to the previously announced tax-free childcare scheme for working families with under 12 year olds, which will be rolled out shortly.

Social Care

  • The government will provide an additional £2 billion funding for social care to councils in England between 2017-18 and 2019-20. 

Education and Training

  • The government announced that they will transform technical education for 16-19 year olds, providing work-placements and improved access to employment.
  • Maintenance loans provided for students pursuing technical education at higher levels.
  • The government will expand free-school provision, increasing choice, whilst providing an additional £216 million investment in maintenance of existing schools.

For further information on the budget, see the Gov.UK full March Budget 2017 document.