What to Expect from the October 2024 Budget

As the October 2024 Budget approaches, many of us are wondering how the changes will affect our wallets. On October 30th, the new government will make their first budget announcement since the general election. The government has hinted that this budget might be “painful,” and it’s expected to include some tough decisions. 

But don’t worry, we’re here to explain what’s happening, so you know what to expect and how to get the help you need.

What Is The Budget and Why Does It Matter?

The Budget is an important event where the government outlines its plans for taxes, spending, and financial priorities for the year ahead. It impacts everything from public services to how much money we take home after tax. 

While we can make some educated guesses about what will be in the October 2024 Budget, nothing is certain until it’s officially announced. This is because the government often keeps its plans under wraps, or “close to its chest,” until the big day. 

Our theories about potential changes, such as tax increases or spending cuts, are based on hints from officials and the current state of the economy, but until the Chancellor reveals the full picture, we can’t be entirely sure what’s coming.

Every year, the government looks at how much money it has and how much it plans to spend. The October 2024 Budget is important because it helps decide how much support people will get and if taxes will change. With the cost of living already high, this year’s budget will be closely watched.

Why the £22 Billion Debt Could Make the Cost of Living Crisis Worse

The government needs to fill a £22 billion gap in the country’s finances because of rising costs and previous spending commitments that weren’t properly accounted for. This gap has built up over time due to a combination of factors, such as increased spending on public services like the NHS and social care, higher costs associated with an ageing population, and recent issues like public sector pay increases and the cost of fixing the asylum system. 

Additionally, the ongoing cost of living crisis has placed extra strain on government support programs. The £22 billion “black hole” is essentially the difference between what the government is expected to spend and the money it is bringing in through taxes. 

To bridge this gap, the government may need to make difficult choices. This challenge makes the upcoming budget even more crucial, as the government must find a way to balance the books without causing too much harm to everyday people already struggling with high living costs.

What Changes Could We See with the October 2024 Budget?

 While the details haven’t been confirmed, here are a few things that might change:

• Higher Taxes on Savings and Property: While income tax and VAT (what we pay on things we buy) might stay the same, other taxes could go up. For example, if you sell property or have savings, you might pay more tax​.
• Cuts to Public Services: There could be cuts to services like healthcare or local council support. This might mean longer waiting times or less help for people who rely on these services​.
• Higher Living Costs: If the government freezes income tax thresholds (the amount you can earn before paying tax), more people might end up paying higher taxes, even if they’re not earning more​.
• Minimum Wage Increase: On a positive note, the government has plans to increase the National Minimum Wage, which should help workers keep up with rising prices. However, this might take time to come into effect.
• Help for Businesses: While households may feel the squeeze, the government may introduce measures to help businesses. Although this could boost the economy, it might not offer immediate relief to people struggling to pay their bills.

Citizens Advice: What They’re Saying

Our friends at Citizens Advice have been looking closely at how the budget might affect people. Here’s what they found:

• Energy Debts are Rising: Since 2019, the average energy debt has nearly doubled, reaching £1,500. This is a huge burden for many families, especially as we head into winter​.
• Homelessness is a Growing Issue: Many people are facing homelessness because they can’t afford rising rent costs. Citizens Advice reports that homelessness cases have been high since last year​.
• Negative Budgets: Around half of the people Citizens Advice helps are in what’s called a “negative budget,” meaning they don’t have enough money to cover their bills. This is especially hard for older people and those with disabilities.

How Could The October 2024 Budget Affect You?

With rising costs and possible cuts to services, it’s normal to feel worried. If you’re already finding it hard to manage your money or pay bills, the changes from the October 2024 Budget could make things tougher. But remember, you’re not alone, and there’s help available.

IE Hub is here to make managing your finances simpler. Our platform allows you to create a budget online, share it securely with creditors, and manage your finances with less stress. Plus, our benefit checker can help you find out if you’re eligible for additional income, such as benefits or water tariffs, based on the information you’ve already provided.

If the 2024 Budget leaves you feeling anxious about your finances, remember that IE Hub is here to support you. From budgeting tools to benefit checks and mental health support, we’ve got you covered.

Need Help? You’ve Got Options

Financial struggles can take a toll on your mental health. If you’re feeling overwhelmed, it’s important to reach out for support. Our partners, including Mind and StepChange, are ready to help you manage your finances and mental well-being.

If you’re worried about how the budget will affect your finances, here are some ways IE Hub and our partners can support you:

• Budgeting Help: Our platform helps you track your income and spending so you can see where your money is going.
• Benefit Checker: Find out if you’re missing out on extra money you could be entitled to, like benefits or help with your energy bills​.
• Mental Health Support: Money worries can have a big impact on your mental health. If you’re feeling stressed, organisations like Mind are ready to help.

You Are Not Alone

We know this all sounds a bit overwhelming, but with the right tools and support, you can get through it. While the budget might bring some changes, we’re here to help you prepare and stay in control of your money.

You don’t have to face it alone. Reach out to us or one of our partners if you need advice on managing debt, budgeting, or mental health support.

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