The fate of the UK’s next five years was decided when the Conservative Party won the election by a majority vote in May 2015. Whether you voted for them or not, the future of the UK’s public is, mostly, in the conservative government’s plans. So, what do the tories have in store for us? Here are 10 things the conservatives plan to do with your money over the next 5 years.
The Tories goal is to cut the welfare budget by £12 billion by 2017-18. There is, however, mystery surrounding how the government will do just that.
What we do know is they have pledged to cut benefits at £23,000 from the current rate of £26,000.
People between the ages of 18-21 will also be ineligible for job-seekers allowance, but will be entitled to Youth Seekers Allowance for up to six months. After this time period, they will be offered an apprenticeship, trainee-ship or daily community work to work for their benefits, and they will also have no access to Housing Benefit.
2. Statutory Maternity Pay
One way the government might cut the welfare budget is by scrapping statutory maternity pay, according to a recently leaked document.
Paternity leave will also not be doubled from 2 to 4 weeks, which was a plan proposed by Labour.
The Right to Buy scheme will allow renters to purchase their own properties at a bigger discount. Aspiring homeowners would also receive £50 for every £200 saved towards the deposit for up to £3,000, as part of a Help to Buy ISA.
Buyers who can save a 5% deposit could also apply for an interest-free five-year government loan that’s equivalent to 20% of the new build property’s value.
4. Inheritance Tax
The Tories have promised a £175,000 per person transferable allowance for both married couples and civil partners when their main residence is inherited to their children after their death.
Combined with the existing £325,000 nil-rate band per person, parents could pass on property worth up to £1 million that is free from inheritance tax.
5. Energy Bills
Labour promised to freeze energy bills for the next two years if they won the election, which would help reduce household bills. The Conservative government will, however, allow energy bills to rise over the next two years.
There is now greater flexibility with pensions, as people can easily access their retirement pots at their request after the age of 55 years old – which is a policy that came into affect on 6th April 2015.
The state pension will continue to rise by whatever is highest out of consumer price inflation: average earnings or the 2.5%.
Pensioners will continue to benefit from the winter heating allowance, as well as free bus passes and TV licences.
7. Rail Fares
Rail fare costs will be frozen for the next five years, which David Cameron has stated could save regular commuters an average of £400 per year.
The frozen fee applies to everything from daily, weekly, monthly and annual season tickets.
8. Income Tax
It’s good news for workers, as the Conservatives have promised legislation that would not increase income tax, national insurance or VAT. The tax-free personal allowance will rise from £10,600 to £12,500 by 2020.
The Prime Minister has also pledged to raise the threshold of the 40pc income tax from its current £42,383 to £50,000.
The Conservative Party has also promised to raise the minimum wage to approximately £8 within the next five years.
Parents of newborns might be a little concerned they may no longer by eligible for statutory maternity pay, but those with children aged three to four years old may be delighted to learn the conservative government plans to double free childcare for working parents to 30 hours – which is worth approximately £5,000 per year.
10. Marriage Tax
Married couples wil now have the right to transfer up to £1,060 of tax-free income to their partner, and this will also apply to civil partnerships.