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No matter what’s going on in your life, something in today’s financial statement from Jeremy Hunt will have a real impact on how much money – if anything – is left for you each month to spend on the things you want.

Sky News has analysed the real budgets of three different households to see whether they end up better or worse off.

Linda Marshall

Linda is going to be better off overall, thanks in part to the continuation of the energy bill price cap, although it might not feel like that, as the government has not extended the Energy Bills Support Scheme.

We’ve not included that in our calculations as it was a planned change rather than anything that came out of today’s announcements.

“We were really relying on that £67 payment, which we’re going to be losing. It’s a lot of money. The cap is good but they’re taking it out with the other hand. I can’t see how I’m going to be better off at all really. I’m gutted,” she told Sky News.

Click here for our budget calculator to see if you are better or worse off

Linda receives a private pension and a Personal Independence Payment (PIP) to help with health issues that forced her to take early retirement in 2017, aged 55.

Linda’s husband Wayne works full-time for an electrical engineering company, and they also receive rent from Linda’s 38-year-old son Anthony, who moved back in last year due to the rising cost of living. Linda also cares for her grandson Jamie for two days in the week, to help out with childcare costs.

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The new energy cap, Linda’s biggest saving, helps all households. When the government first introduced the Energy Price Guarantee it said that at this point it would rise from £2,500 to £3,000, for a typical annual bill, to ease pressure on public funds. It’s now set to stay at £2,500.

Linda is benefiting from an uplift in her disability support payments, however, adding to extra support received last year.

Frozen tax thresholds mean that Linda’s husband will effectively pay an extra £170 in tax next year. As his salary rises with inflation, the amount he can take home before paying tax does not. More on that later on.

Mike Holden

Mike ends up worse off overall. He doesn’t mind so much as he’s in a comfortable situation, but was hoping to hear more support for those struggling.

“My concern is not for myself, I’m comfortably off. If fuel bills stay as they are I can survive, if they go up I can take the hit a little bit. People here [in Burnley] on minimum wage can’t afford to heat their homes or feed their kids.

“I was hoping for more support for those people rather than myself. I will rise over the bumps and I have a retirement coming up in a few years.”

Mike owns his own home and is the landlord for two others. He’s comfortable, but that doesn’t mean he’s immune from rising costs.

“Our day-to-day costs have doubled in the last 12 months, fuel costs have gone up 50%. And Liz Truss’s intervention cost me about £60,000 in lost pension pot,” he said.

Like Linda, he benefits from the energy price cap, but he loses out more from the tax threshold freeze. It will cost him more than £300 in real terms over the next 12 months.

Why is the tax threshold freeze so significant? As inflation rises so, typically, do wages. But in real terms, the value of money becomes less.

£10,000 will buy you about 10% less stuff than it did last year, for example.

In the UK you can earn £12,570 without paying tax. Typically that number, and the number at which you start paying a higher rate of tax (£50,270) rise each year to account for the fact that the money is worth less.

They haven’t this year and that affects all taxpayers, but could cost thousands for higher earners. It’s effectively a stealth tax.

Mike’s main concerns around the budget, however, are for those on lower incomes in his area, who he’s seen struggling to pay for the basics or even to feed their children.

“The stabilisation of the tax rate will cost me a bit of money, but I can tighten my belt a bit. People around here like Lianne don’t have more belt to tighten.”

Lianne Bruce

Lianne will end up better off than last year, mainly thanks to the fuel duty freeze. Her husband Damian is also self-employed, he has a removals company so spends a lot on diesel. Once more though, it doesn’t feel like things are getting any easier.

“It’s really testing times, especially being self-employed. I feel we’re always the ones left behind. You’re trying to do well for yourselves but you’re backpedalling all the time,” she told Sky News.

“The government needs to step up and help the working person. Costs are going up and up and up across the board and they make it sound like – because they’re keeping it at a level rate, not increasing it anymore – they’re doing us a favour, but they’re not. People are struggling.”

Lianne and Damian have a four-year-old daughter who started school this year. They won’t benefit from today’s announcement about childcare support.

Before she started school they paid £100 for two days of childcare a week. Lianne had to go part-time with her work because it was unaffordable to pay for more.

What the family lose from the tax threshold freeze is offset by what they gain from an uplift in child benefit, energy prices and fuel prices.

Fuel duty is the amount of tax that the government charges drivers when they buy petrol. When petrol prices started rising the government lowered the amount of tax it gets, per litre, but planned to raise it back again.

The government announced today that they will no longer do that, which is especially important to Lianne’s husband Damian with his driving-intensive job. Raising the duty as planned would have cost the family over £200 more a year.

Prices are still significantly higher than they were before Russia’s invasion of Ukraine, however.

“People are already at breaking point. For people on the borderline, if things get any worse I dread to think what’s to come,” Lianne added.

Follow more of Sky News’s reaction to the budget on our live page.


The Data and Forensics team is a multi-skilled unit dedicated to providing transparent journalism from Sky News. We gather, analyse and visualise data to tell data-driven stories. We combine traditional reporting skills with advanced analysis of satellite images, social media and other open source information. Through multimedia storytelling we aim to better explain the world while also showing how our journalism is done.

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BBC ‘determined to fight’ any Trump legal action, chairman tells staff

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BBC 'determined to fight' any Trump legal action, chairman tells staff

BBC chair Samir Shah has said there is “no basis for a defamation case and we are determined to fight this” – after Donald Trump said he would sue the corporation for between $1bn and $5bn.

It comes after the US president confirmed on Saturday he would be taking legal action against the broadcaster over the editing of his speech on Panorama – despite an apology from the BBC.

Samir Shah said the BBC's position 'has not changed'. Pic: Reuters
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Samir Shah said the BBC’s position ‘has not changed’. Pic: Reuters

In an email to staff, Mr Shah said: “There is a lot being written, said and speculated upon about the possibility of legal action, including potential costs or settlements.

“In all this we are, of course, acutely aware of the privilege of our funding and the need to protect our licence fee payers, the British public.

“I want to be very clear with you – our position has not changed. There is no basis for a defamation case and we are determined to fight this.”

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On Saturday, President Trump told reporters legal action would come in the following days.

“We’ll sue them. We’ll sue them for anywhere between a billion (£792m) and five billion dollars (£3.79bn), probably sometime next week,” he said.

“We have to do it, they’ve even admitted that they cheated. Not that they couldn’t have not done that. They cheated. They changed the words coming out of my mouth.”

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The BBC on Thursday said the edit of Mr Trump’s speech on 6 January 2021 had given the “mistaken impression that President Trump had made a direct call for violent action”.

The broadcaster apologised and said the splicing of the speech was an “error of judgment” but refused to pay financial compensation after the US leader’s lawyers threatened to sue for one billion dollars in damages unless a retraction and apology were published.

Deborah Turness. Pic: Reuters
Image:
Deborah Turness. Pic: Reuters

Tim Davie. Pic: PA
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Tim Davie. Pic: PA

The Panorama scandal prompted the resignations of two of the BBC’s most senior executives – director-general Tim Davie and news chief Deborah Turness.

The broadcaster has said it will not air the Panorama episode Trump: A Second Chance? again, and published a retraction on the show’s webpage on Thursday.

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Joseph James O’Connor ordered to pay back over £4m in Bitcoin after hacking celebrity X accounts

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Joseph James O'Connor ordered to pay back over £4m in Bitcoin after hacking celebrity X accounts

A British man who hacked the X accounts of celebrities in a bid to con people out of Bitcoin, has been ordered to repay £4.1m-worth of the cryptocurrency, prosecutors say.

Joseph James O’Connor, 26, was jailed in the United States for five years in 2023 after he pleaded guilty to charges including computer intrusion, wire fraud and extortion.

He was arrested in Spain in 2021 and extradited after the country’s high court ruled the US was best placed to prosecute because the evidence and victims were there.

The Crown Prosecution Service (CPS) said on Monday it had obtained a civil recovery order to seize 42 Bitcoin and other crypto assets linked to the scam, in which O’Connor used hijacked accounts to solicit digital currency and threaten celebrities.

The July 2020 hack compromised accounts of high-profile figures including former US presidents Barack Obama and Joe Biden, and Amazon founder Jeff Bezos.

O’Connor and his co-conspirators stole more than $794,000 (£629,000) of cryptocurrency after using the hacked accounts to ask people to send $1,000 in Bitcoin to receive double back.

Prosecutor Adrian Foster said the civil recovery order showed that “even when someone is not convicted in the UK, we are still able to ensure they do not benefit from their criminality”.

The order, which valued O’Connor’s assets at around £4.1m, was made last week, following a freeze placed on the hacker’s property, which prosecutors secured during extradition proceedings.

Barack Obama was one of the famous people to have their Twitter account hacked
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Barack Obama was one of the famous people to have their Twitter account hacked

Elon Musk was among those targeted by scammers in a Twitter hack
Image:
Elon Musk was among those targeted by scammers in a Twitter hack

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A court-appointed trustee will liquidate his assets, the CPS said.

The attack also compromised the X (then Twitter) accounts of other high-profile figures including Tesla chief executive Elon Musk, investor Warren Buffett, and media personality and businesswoman Kim Kardashian.

The hack prompted the social media platform to temporarily freeze some accounts.

X said 130 accounts were targeted, with 45 used to send tweets.

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Inside the town where 6 out of 7 children grow up in poverty – and live in fear of homelessness

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Inside the town where 6 out of 7 children grow up in poverty - and live in fear of homelessness

The cobbled streets of Newport in Middlesbrough survive from the Victorian era.

The staggering levels of child poverty here also feel like they belong in a different time.

Six out of every seven children in Newport are classified as living in poverty.

Six out of every seven children in Newport are classified as living in poverty
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Six out of every seven children in Newport are classified as living in poverty

The measure is defined by the Child Poverty Action Group as a household with an income less than 60% of the national average.

More than half of children across the whole of the constituency of Middlesbrough and Thornaby East are growing up in poverty.

As a long-awaited new strategy on child poverty is expected from the government, much of the focus on tackling the problem has been placed on lifting the two-child cap on benefits for families.

Researchers say there is direct link between areas with the highest rates of child poverty and those with the highest proportion of children affected by that two-child cap.

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The two-child benefit cap means Gemma Grafton and Lee Stevenson receive no additional universal credit for three-month-old Ivie
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The two-child benefit cap means Gemma Grafton and Lee Stevenson receive no additional universal credit for three-month-old Ivie

Mother-of-three Gemma Grafton said: “Maybe if families do have more than two children, give them that little bit of extra help because it would make a difference.”

Three months ago, she and partner Lee welcomed baby Ivie into the world. With two daughters already, the cap means they receive no additional universal credit.

“You don’t seem to have enough money some months to cover the basics,” said Lee.

“Having to tell the kids to take it easy, that’s not nice, when they’re just wanting to help themselves to get what they want and we’ve got to say ‘Try and calm down on what you’re eating’ because we haven’t got the money to go and get shopping in,” added Gemma.

Katrina Morley, of Dormanstown Primary Academy, says lack of sleep affects concentration
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Katrina Morley, of Dormanstown Primary Academy, says lack of sleep affects concentration

Tracey Godfrey-Harrison says parents 'are crying that they're failing'
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Tracey Godfrey-Harrison says parents ‘are crying that they’re failing’

The couple had to resort to paying half of the rent one month, something they say is stressful and puts their home at risk.

Those who work in the area of child poverty say they are engaged in a battle with child exploitation gangs who will happily step in and offer children a lucrative life of crime.

“Parents are crying that they’re failing because they can’t provide for their children,” said Tracey Godfrey-Harrison, project manager at the Middlesbrough Food Bank.

“In today’s society, it’s disgraceful that anyone should have to cry because they don’t have enough.”

In the shadow of a former steelworks, Dormanstown Primary Academy serves pupils in a community hit hard by the economic collapse that followed.

The school works with charities and businesses to increase opportunities for pupils now and in the future.

Katrina Morley, the academy’s chief executive, said: “A child who hasn’t been able to sleep properly can’t concentrate. They’re tired. We know that the brain doesn’t work in the same way. A child who is hungry can’t access the whole of life.

“When you face hardship, it affects not just your physiology but your emotional sense, your brain development, your sense of worth. They don’t get today back and their tomorrow is our tomorrow.”

Dormanstown Primary Academy serves pupils in a community hit hard by the closure of a steel plant
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Dormanstown Primary Academy serves pupils in a community hit hard by the closure of a steel plant

Barney's Baby Bank founder Debbie Smith says local people 'are struggling with food'
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Barney’s Baby Bank founder Debbie Smith says local people ‘are struggling with food’


The school’s year six pupils see the value of things like the on-site farm shop for families in need.

They are open about their own worries, too.

Bonnie, 10, said: “I think that’s very important because it ensures all the people in our community have options if they’re struggling.

“It can be life-changing for families in poverty or who have a disadvantage in life because they don’t have enough money and they’re really struggling to get their necessities.”

Mark, also 10, said: “I worry about if we have nowhere to live and if we haven’t got enough money to pay for our home. But at least we have our family.”

They also see the homelessness in the area as the impact of poverty. “I think it actually happens more often than most people think,” said Leo, “because near the town, there’s people on the streets and they have nowhere to go.”

The school is one of many calling for the lifting of the two-child cap.

The need for life’s essentials has prompted more than 50 families to register for help at Barney’s Baby Bank in the last 11 months. Nappies, wipes, clothing, shoes, toys, are a lifeline for those who call in.

Founder Debbie Smith said local people “are struggling with food. They’re obviously struggling to clothe their babies as well. It’s low wages, high unemployment, job insecurity and that two-child benefit cap”.

“Middlesbrough does feel ignored,” she added.

A government spokesperson said: “Every child, no matter their background, deserves the best start in life. That’s why our Child Poverty Taskforce will publish an ambitious strategy to tackle the structural and root causes of child poverty.

“We are investing £500m in children’s development through the rollout of Best Start Family Hubs, extending free school meals and ensuring the poorest don’t go hungry in the holidays through a new £1bn crisis support package.”

Read more on Sky News:
Progress ‘being made’ on poverty
Warning over ‘great poverty distraction’

But what is the message to those making the decisions from the North East?

“Come and do my job for a week and see the need and the desperation the people are in,” said Ms Godfrey-Harrison. “There needs to be more done for people in Middlesbrough.”

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