Budget 2024: Chancellor raises child benefit threshold from £50k – and confirms national insurance will be cut by 2p
The chancellor has confirmed a 2p cut to national insurance and increased child benefit thresholds.
In the budget, Jeremy Hunt said “permanent cuts in taxation” were possible because of the progress made in bringing down inflation – with forecasts suggesting it will fall to the target level of 2% within months.
More parents will be paid child benefit after the £60,000 threshold, beyond which no payment is currently made, will be extended to £80,000 from next month.
Budget live: No rabbit out of the hat on income tax from chancellor
At present if one parent earns £50,000 a year child benefit payments are reduced. Following Mr Hunt’s announcement such payments won’t be tapered off until a parent is paid £60,000 annually.
The policy change will help 170,000 families with children under 16, or under 20 if they are in full-time education or training, Mr Hunt said.
Eligible parents receive £24 a week for their first child and £15.90 for other each of their other children. These sums will rise to £25.60 and £16.95 a week next month.
Also due to change is the way child benefit is assessed.
It will move away from the present system, where just one parent earning £50,000 means the entitlement is tapered off, to whole household eligibility, whereby the income of parents is looked at together.
Read more:
What key budget terms mean – fiscal drag, headroom and tax thresholds
The key announcements of the 2024 Budget
But this new joint assessment is won’t take effect until April 2026.
Average savings of around £1,300 will be made by nearly half a million families next year of the changes, Mr Hunt said.
Mr Hunt indicated plans to completely scrap national insurance contributions, branding it “double taxation”. National insurance brought in around £177bn in the 2022-23 period in tax.
Mr Hunt spoke about cutting taxes to increase growth, and the official Office for Budget Responsibility (OBR) forecast predicted that living standards will grow faster than expected.
But real disposable household income is not expected to recover to pre-pandemic levels until the 2025-26 period, after the next election.
And the tax burden is also set to continue to rise – albeit at a slightly reduced level when compared to last autumn’s forecast.
In total, the government will take £19.7bn more in tax by 2029 than forecasted in March 2021, even when the cuts to national insurance are included, due to fiscal drag.
Scrapping the “non-doms” regime, which allowed certain wealthy individuals to avoid paying tax on their foreign income, is expected to raise £2.7bn a year.
Rishi Sunak was recused from the decision on non-dom tax to avoid any perceived or potential conflicts of interest.
In terms of spending, Mr Hunt earmarked almost £6bn for the NHS – with artificial intelligence set to be used to “cut form-filling for doctors” in a digitisation drive.
A 5p cut to fuel duty will be extended for another 12 months – with the government “backing the Great British pub” by holding the price of beer, wine and spirits steady until February 2025.
Meanwhile, Britons will be able to invest up to £5,000 in UK companies tax-free – in addition to their current ISA allowance – through a new “British ISA”.
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Chancellor cuts national insurance in budget
He also announced:
• The High Income Child Benefit Charge threshold will increase from £50,000 to £60,000
• A new excise duty on vaping, as well as a one-off increase to tobacco duty
• The higher capital gains tax rate on property will fall from 28% to 24%
• The VAT registration threshold will rise from £85,000 to £90,000 from 1 April – the first increase in seven years
• A fund aimed at supporting vulnerable households with the cost of living will be extended by a further six months
• The UK economy is expected to grow by 0.8% this year – and 1.9% in 2025
• Hundreds of millions of pounds to tackle “historic underinvestment in our nations and regions”
The 2p cut to national insurance was widely trailed – and follows a previous 2p cut announced in the autumn statement. Combined, this could save the average worker up to £900 a year.
But the chancellor had faced calls from Tory MPs to cut income tax or unfreeze tax thresholds to prevent Britons from being dragged into higher bands when they get pay rises.
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Awkward wait for chancellor outside No 11
Mr Hunt is already facing anger from Scottish Conservatives, after he announced an extension of the windfall tax on profits made by energy companies in the North Sea.
The leader of the Scottish Tories, Douglas Ross, said he would not vote with the legislation – implying he would either oppose or abstain on the motion to introduce the measure.
Andrew Bowie, a Tory minister, said the will be “working with” Mr Ross to “resolve” the matter.
Labour leader Sir Keir Starmer said the budget was “bereft of ideas”.
This budget is set to be the last before the election – with Mr Hunt under pressure to revive economic growth and the government’s prospects at the ballot box.
The UK economy slipped into a technical recession at the end of last year, and the Tories are about 20 points behind in the opinion polls.
Money blog: What budget means for you
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Why don’t we know when the UK election is?
Before the budget was announced, shadow chancellor Rachel Reeves said: “The Conservatives promised to fix the nation’s roof, but instead they have smashed the windows, kicked the door in and are now burning the house down.
“Taxes are rising, prices are still going up in the shops and we have been hit by recession. Nothing the chancellor says or does can undo the economic vandalism of the Conservatives over the past decade.”
Former anti-corruption minister Tulip Siddiq has been named in a third inquiry being launched by authorities in Bangladesh investigating money laundering and power misuse.
At a media briefing in Dhaka held hours after Ms Siddiq resigned as a minister, investigators confirmed they were working on another probe involving the Labour MP.
It is the third Bangladesh inquiry and comes on top of questions about London properties she lives in or has lived in with links to her aunt, the ousted Bangladesh prime minister Sheikh Hasina and her Awami League party.
Director general of the Anti-Corruption Commission Akhtar Hossain told Sky News the organisation was “preparing another investigation against Tulip Siddiq and her uncle Tarique Siddique for money laundering, power misuse, and illegally occupying Bangladesh government property”.
Mr Hossain also said the investigation team in Bangladesh would contact the UK authorities if additional information was required.
A spokesperson for Ms Siddiq said: “No evidence has been presented for these allegations.
“Tulip Siddiq has not been contacted by anyone on the matter and totally denies the claims.”
Tarique Siddique is Ms Siddiq’s uncle – the husband of her mother’s younger sister – and previously served as a defence and security adviser to her aunt Sheikh Hasina.
Ms Hasina fled Bangladesh in August and resigned her post after 20 years amid weeks of deadly protests.
Read more: What allegations is Tulip Siddiq facing?
Tulip Siddiq with Sheikh Hasina in 2009. Pic: Reuters
The new government has since accused Ms Hasina’s Awami League administration of crimes and corruption while in office.
Ms Siddiq quit as anti-corruption minister on Tuesday after links with her aunt and her political regime came under scrutiny.
It is claimed she has benefited financially from three London properties linked to her aunt and her allies.
She referred herself to the prime minister’s standards adviser Sir Laurie Magnus who said he had “not identified evidence of improprieties” but added it was “regrettable” Ms Siddiq had not been more alert to the “potential reputational risks” of the ties to her aunt.
Ms Siddiq said continuing in her role would be “a distraction” for the government but insisted she had done nothing wrong.
Read more: Tulip Siddiq boasted of links with ousted Bangladesh PM
Tulip Siddiq (far left) with her aunt, Sheikh Hasina (third left), and Russian President Vladimir Putin at a 2013 signing ceremony in the Kremlin as Moscow lent $1.5bn to help build a nuclear power station. File pic: AP
Earlier this week, Sky News revealed Bangladesh investigators were looking into Ms Siddiq as part of a separate corruption inquiry into the illegal allocation of land in a new town development outside of Dhaka.
She was also named in an investigation into the alleged embezzlement of $5bn (£3.9bn) from a nuclear power project in the country developed in partnership with Russia.
Labour sources suggested these accusations were not genuine and Ms Siddiq had not been contacted by anyone in Bangladesh about the inquiries.
Nobel peace-prize winning economist Muhammad Yunus, who is leading Bangladesh’s interim government, said the London properties used by Ms Siddiq should be investigated and returned if she is found to have benefited from “plain robbery”.
Following her resignation, Professor Yunus said there will be a thorough investigation into properties and assets “tied to stolen Bangladeshi funds, including those linked to individuals with connections to the previous regime” and if it is proven they have benefited from embezzlement “we expect those assets to be returned to Bangladesh, where they rightfully belong”.
“Tulip Siddiq may not have entirely understood the source of the money and property that she was enjoying in London, but she knows now and should seek forgiveness from the people of Bangladesh,” he added.
Singer Linda Nolan, who rose to fame alongside her sisters in The Nolans, has died after several years of battling cancer.
The Irish star, 65, and her sisters Coleen, Maureen, Bernie, Denise and Anne, had a run of hits in the late 1970s and ’80s – including the disco classic I’m In The Mood For Dancing.
Paying tribute on The Nolans‘ X account, her sisters described her as “a pop icon and beacon of hope”, who “faced incurable cancer with courage, grace and determination, inspiring millions”.
Linda died peacefully in hospital this morning, “embraced with love and comfort” with her siblings by her side, her agent Dermot McNamara said in a statement.
“As a member of The Nolans, one of the most successful girl groups of all time, Linda achieved global success; becoming the first Irish act to sell over a million records worldwide, touring the world and selling over 30 million records,” he said.
“Her distinctive voice and magnetic stage presence brought joy to fans around the world, securing her place as an icon of British and Irish entertainment.
“Beyond her incredible career, Linda dedicated her life to helping others, helping raise over £20m for numerous charities, including Breast Cancer Now, Irish Cancer Society and Samaritans, amongst countless others. Her selflessness and tireless commitment to making a difference in the lives of others will forever be a cornerstone of her legacy.”
Five of the Nolans in 1983 (L-R): Linda, Anne, Bernie, Coleen and Maureen. Pic: PA
Linda’s death came after she was admitted to hospital with pneumonia over the weekend. She began receiving end-of-life care after slipping into a coma on Tuesday, Mr McNamara said.
Details of a celebration of the star’s “remarkable life” will be shared in due course, he added.
Linda was born to Tommy and Maureen Nolan in Dublin on 23 February 1959, the sixth of eight children.
Her parents were both singers and keen to turn their young family into a musical troupe. Linda made her stage debut aged just four.
Those early years put the siblings on track for a career in show business which lasted for decades. As well as I’m In The Mood For Dancing, The Nolans had hits with Gotta Pull Myself Together, Attention To Me and Don’t Make Waves, and they also had their own TV specials.
At their height, they toured with Frank Sinatra and were reported to have outsold The Beatles in Japan.
Linda left the group in 1983, but later reformed with her sisters for several comeback performances. She also became known for musical theatre, most notably performing the role of Mrs Johnstone in Blood Brothers for three years from 2000.
L-R: Bernie, Denise, Linda (top), Anne and Maureen Nolan pictured in 1975, before youngest sister Coleen joined the group
Four siblings struck by cancer
Linda was first diagnosed with breast cancer in 2006, and underwent a mastectomy to remove her left breast two days before her 47th birthday.
After being given the all-clear in 2011, in 2017 she was diagnosed with secondary breast cancer. Three years later, Linda and Anne together revealed they were being treated for cancer once again.
The sisters were diagnosed with different forms of the disease just days apart after they returned home from filming a series of their show, The Nolans Go Cruising. Linda had cancer of the liver, while Anne had breast cancer.
The star, pictured last year, had battled cancer for several years. Pic: Shutterstock
They went on to write Stronger Together, an account of their journey that included frank details of their treatments and the side effects.
But in 2023, Linda revealed the cancer had spread to her brain and she was beginning treatment as part of a new drug trial.
The Nolans lost their second-youngest sister, Bernie, to cancer in 2013, aged 52.
Loose Women star Coleen Nolan also revealed she was diagnosed with skin cancer last year, and said she was using a chemotherapy cream to remove it.
Linda’s husband of 26 years, Brian Hudson, died in 2007 after being diagnosed with skin cancer.
Anne Nolan is now cancer-free.
Tributes to star ‘who was always a joy’
TV star and singer Cheryl Baker and comedian Tommy Cannon are among those who have paid tribute.
“I’m heartbroken to hear about the passing of Linda Nolan,” Cannon wrote on X. “I had the pleasure of working with her on so many occasions, and she was always a joy – full of warmth and love. My thoughts and love are with the Nolan girls and the whole family.”
“The most incredible voice, the wickedest sense of humour, such a massive talent,” Baker wrote. “You’re with Brian now, Lin.”
Loose Women also sent its love to her family. Linda appeared as a guest panellist on the ITV chat show over the years, alongside her sister Coleen.
The Blackpool Grand Theatre described her as “a true Blackpool icon”.
Two teenagers and a woman have been arrested after a 14-year-old boy was stabbed to death on a bus in southeast London.
Kelyan Bokassa was on the 472 service in Woolwich when he was attacked just before 2.30pm on Tuesday 7 January.
The teenager died at the scene shortly after medical help arrived.
Two boys, aged 15 and 16, were arrested on Wednesday on suspicion of murder, and a 44-year-old woman was arrested on suspicion of assisting an offender.
All three remain in custody, the Metropolitan Police said.
Detective Chief Inspector Sarah Lee said: “While these arrests mark a significant step forward in this investigation, we continue to appeal for anyone with information about Kelyan’s murder to come forward and speak to us.
“I would like to thank officers for working around the clock in order to locate our suspects and praise the Woolwich community for their ongoing support and patience whilst we have carried out our investigation.
“I know that this incident deeply affected you all, and I hope that these two arrests reassure you that we are doing everything to tackle violent offenders across London.”
Anti-knife campaigner Faron Paul speaking during a vigil held for Kelyan last week. Pic: PA
The Metropolitan Police called the stabbing a “horrific attack”, while London mayor Sir Sadiq Khan said the “heartbreaking violence has absolutely no place in our city”.
Kelyan was an aspiring rapper, who was described as having “briefly” been a student at St Columbia’s Catholic Boys School in Bexleyheath.
Following his death, his mother Mary Bokassa described his troubled childhood to journalists.
She said he was taken into care, moved from school to school, and eventually fell into the clutches of criminal gangs.
Read more from Sky News:
Singer and TV personality Linda Nolan dies
Father denies murdering daughter during ‘play-fight’
Met Police officers were called to reports of a stabbing on a Route 472 bus at 2.28pm on 7 January on Woolwich Church Street, near its junction with the A205 South Circular Road.
Paramedics from the London Ambulance Service and London’s Air Ambulance attended the scene.
Police say Kelyan’s family are being supported by specialist officers as the investigation “remains ongoing”.
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