Budget 2024: Five key announcements as Martin Lewis welcomes child benefit change

The Chancellor Jeremy Hunt delivered his Spring Budget in the House of Commons on March 6. We’ve rounded up some of the key announcements from his speech.

2p cut in national insurance

From April, national insurance contributions will be cut from 10% to 8% for employees. This will affect around 27 million workers and could save employees up to £450 a year.

For people who are self-employed, national insurance rates will also drop by two percentage points.

High Income Child Benefit Charge threshold increase

The High Income Child Benefit Charge threshold (when you start paying some of it back) will increase from £50,000 to £60,000 from April.

The amount of earnings at which you are not entitled to child benefit will rise from £60,000 to £80,000 and over.

Reacting to the announcement on X, Martin Lewis said: “We got the win on child benefit!”

MoneySavingExpert.com and its founder Martin Lewis campaigned on the issue and were told by the Chancellor the change was largely down to their campaigning.

Universal Credit claimants given more time to pay off emergency loans

Universal Credit claimants can get a budgeting advance loan for emergencies such as a boiler repair or moving costs.

The time given to repay budgeting advance loans will change from 12 months to 24 months.

New British ISA

A new British ISA will allow an extra £5,000 investment into UK businesses.

The additional £5,000 will be on top of the existing allowance of £20,000 (for investment in UK assets only).

New tax on vaping products

In October 2026, duty will be introduced on vaping liquids. Vaping products will therefore increase in price.

There will also be a one-off increase in tobacco duty. As a result of the tobacco duty increase, vaping products will stay less expensive than tobacco products.