Hot off the press are the key headlines from the Spring 2023 Budget.

A summary of the major points that are likely to impact you can be found below:

Planned Energy Bill increases won’t take place

Further support made available.

The ‘average’ annual bill was due to go up to £3,000 (from £2,500) from April 1st 2023. The Chancellor has announced further support will be made available to ensure the average bill remains at £2,500 per year for the next 3 months.

Your energy bills can still be more than £2,500.

It’s important to understand that the energy ‘price cap’ (the price suppliers can charge for variable rates for gas and electricity) is not the maximum anyone will be charged for their usage. The ‘price cap’ limits how much energy companies can charge for each unit of energy. The more you use, the more you’ll pay.

Extra costs for customers on pre-paid meters scrapped

Customers with prepayment meters will no longer be charged more to receive their energy under changes announced today.

What do the announced changes mean for you?

According to the government, the ending of the “prepayment premium” from July will save more than four million households £45 a year on their energy bills.

Unfairly penalised.

If you’re unable to pay for your energy via direct debit, or do not qualify to pay via direct debit you were, unfairly in most people’s eyes, paying more for your usage. This will now stop from July.

Additional free childcare

30 hours of extra free childcare per week will be provided.

What do the announced changes mean for you?

Parents of children aged from 9 months until the age of two will receive up to 30 hours of free childcare every week. The increase in free childcare hours will begin in phases starting from April 2024.

Currently free nursery hours are provided for children aged three and four. How many hours received by families with three of four year olds varies depending on their personal circumstances.

Remember, CreditLadder can help you improve your credit score.

CreditLadder can improve your credit position by reporting your rent payments. CreditLadder is the first way to improve your credit score and position across all three of the main Credit Reference Agencies in the UK, namely Experian, Equifax and TransUnion. Building up a high credit score has a lot of benefits, including helping you access finance at better rates - this can also help save you money. CreditLadder also runs a free mortgage application service in partnership with Tembo which will tell you how much you could borrow.

Remember the content provided in this article is for information purposes only and should not be considered as advice.