Budget suggests life begins at 50 - Economy - News - Moneyfacts


Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Budget suggests life begins at 50

Budget suggests life begins at 50

Category: Economy

Updated: 22/04/2009
First Published: 22/04/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

It is the older generation that appears to have the most reasons to be cheerful, after Alistair Darling delivered a Budget targeted at supporting those lower income pensioners likely to have seen their earnings from savings fall as a result of recent drop in interest rates.

One new measure particularly worthy of praise from those who rely on ISAs for tax free income should be the raising of the ISA contribution limits. Not only are those over 50 the first to be able to take advantage of the new limits (from 6 October this year), the first £10,000 of savings held by pensioners will not be taken into account for assessment of their entitlement to Pensions Credit, Housing Benefit and Council Tax Benefit either.

In addition, Pension Credit recipients who may have overpaid tax on their savings income in the past six years are set to be contacted as part of a taxback campaign. It is hoped the campaign will encourage people to claim tax back on savings income and, where possible, register to avoid overpaying tax in future. Those who claim are expected to receive around £200 on average.

Also announced was that from the 2009/10 tax year, there will be an additional payment alongside the Winter Fuel Payment worth £100 for households with someone aged 80 or over and £50 for households with someone aged 60 or over.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Inflation and you: what does the latest rise mean?

Today saw not only the outlining of the Government’s stance on leaving the EU, but also a rise in inflation that was larger than predicted. But what does this mean for the pound in your pocket?

Base rate remains unchanged in surprise decision

Earlier today, the Bank of England’s rate setting committee announced that it had voted decisively to keep base rate on hold at its record low of 0.5%. But what does it mean for you?

Budget 2016 – an overview

Well, George Osborne has just revealed the Budget for 2016 – his eighth so far as Chancellor – and as ever, there were some winners and losers from the whole thing. Below is a quick overview of the key points.