What Does The Budget Mean For Young People?

A lot of the budget was aimed at the middle-aged middle class - for example there was an emphasis on 'savers' as well as pension reforms.  However, there are aspects of it which will directly affect young people:

Firstly, at the moment people do not pay tax on the first £10,000 of their earnings.  George Osborn will raise this to £10,600 in April and then by £1,000 to £11,000 by 2017.  

Those under the age of 21 will make no national insurance contribution after April.

The national minimum wage will increase above inflation.  For 16 and 17 year olds, the rate will go up by 2% to £3.87.  For 18-20 year olds the rate will rise by a higher 3% to £5.30 (from £5.13).  The higher rate national minimum wage will also rise by 3% form October to £6.70 (from £6.50).

Working age benefits will rise by 1%.

The price of beer may go down, too, but only by 1p as 'beer duty' is being cut.  Cider and spirits will also go down in price due to a VAT reduction of 2%.

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