Budget 2024: Measures for families announced today as Chancellor Rachel Reeves’ budget raises taxes by £40bn

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Watch as Chancellor Rachel Reeves announces funding for schools in the budget, along with a change to universal credit.

The Chancellor of the Exchequer Rachel Reeves delivered her budget speech to the House of Commons today (October 30).

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It was the first Labour budget since the late Alistair Darling delivered the final budget of the Gordon Brown premiership in March 2010. It was also the first budget delivered by a woman in the UK’s history.

Reeves said the budget will raise taxes by £40bn.

Child plays with building blocks.Child plays with building blocks.
Child plays with building blocks. | PA

We’ve rounded up the measures affecting families Reeves announced in the budget today.

The Fair Repayment Rate

The Fair Repayment Rate, which will come into force in April 2025, will cap the amount that can be cut from benefit payments each month to repay short-term loans and debts. The level of monthly deductions to an individual’s universal credit standard allowance will be capped at 15%, instead of the previous level of 25%.

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1.2 million households, including 700,000 families with children, will, on average, be £420 a year better off.

£1.4bn for rebuilding schools

Rachel Reeves confirmed £1.4bn to meet a target of rebuilding 50 schools in England a year. The programme, announced in 2020 by ex-prime minister Boris Johnson, aims to rebuild or refurbish about 500 schools in a decade.

The chancellor also announced a “tripling” of investment in primary school breakfast clubs.

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Special educational needs funding

The chancellor announced a £1bn increase in special educational needs funding - an increase of 6% year on year.

Tax changes announced in the budget

National Insurance increase for employers

Reeves confirmed she is not increasing income tax, employees’ national insurance and VAT.

However, the amount of National Insurance paid by employers will rise by 1.2% from April 2025. Employers will start paying it at £5,000, rather than £9,100.

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Capital gains tax

On capital gains tax, Reeves said the lower rate will rise from 10% to 18%, and the higher rate from 20% to 24%.

Inheritance tax

Rachel Reeves is continuing the freeze on inheritance tax thresholds until 2030. Inherited pensions will be brought into inheritance tax from 2027. Reeves says the government will also reform agricultural property relief and business property relief from April 2026.

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