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EDITIONS
Tuesday, 27 November, 2001, 17:57 GMT
Pre-Budget: What it means for you
Pensioners
The chancellor has announced a number of measures which affect pensioners, working people, families and consumers in general. What are they?

Working people

  • Share options will be extended to businesses with a turnover of 30m.
  • The Department for Work & Pensions will announce new measures for newly redundant people and expand the New Deal for the long-term unemployed.
  • There will be consultation on in-house training and time off work for education.
  • There will be a new community investment tax credit to regenerate high unemployment areas.
  • Company car users could face another tax. There will be a consultation on new fuel scale charges - one option will be whether free fuel provided to company car users will be taxed according to its level of carbon dioxide emissions.

Consumers

  • Abolition of betting tax on football pools from next April.
  • Government plans to publish a consultation document on how to improve competition in the annuities market.
  • Stamp duty will be abolished from Friday on properties worth up to 150,000 in certain deprived areas of the country.
  • The chancellor reminded people that foreign coins donated to charities would receive a 28% top-up from the government.
  • The chancellor has asked the Inland Revenue to consult on a scheme which would allow people to donate directly to charities within their tax return and receive tax relief for doing so.
  • New consultation will be launched on measures to provide tax relief to support community amateur sports clubs that make a positive contribution to their communities.
  • Consultation announced on modernising motorcycle Vehicle Excise Duty.

Pensioners

The Chancellor announced a number of measures that he said would make "every pensioner in Britain better off".

  • Pensions would rise by at least 100 a year (whatever happens to inflation) for individuals and 160 a year for couples, affecting all of Britain's 11 million pensioners.
  • 2bn has been set aside for the pension credit which will be introduced in 2003.

    The pension credit is aimed at rewarding people with "modest savings" and occupational pensions.

    The chancellor said that the scheme would be available to half of all pensioners or 5.4 million pensioners in total.

    The pension credit will mean that a single pensioner will receive at least 98 in April 2002 and 100 from 2003.

    Pensioners who have a 1,000-a-year occupational pension will receive an extra 600 a year under pension credit.

    A couple who receive 1,500 a year from an occupational pension scheme will receive an extra 900 a year.

    Further details wil be published on Wednesday.

  • The chancellor extended the Winter fuel allowance and said that it would hand out 200 for each year of this parliament.

Families

  • The Chancellor confirmed that the government would be introducing the Employment Tax Credit which is aimed at childless couples who currently miss out on the working families tax credit.

    Legislation will be introduced later this week.

  • Mr Brown also confirmed that he would be introducing the integrated child credit, which integrates all elements of income support given to parents - on top of universal child benefit.

    He also confirmed that the credit would be given to the main carer - a criticism of the existing tax credits.

    The Chancellor said that his measures meant that some families were paying tax as "low as -200%".

  • The government is launching pilot projects for its Saving Gateway, an account aimed at low-income families. Savings would be matched with government contributions.

  • The Child Trust Fund, an endowment scheme for children could be tied into financial education and delivered through the school curriculum.

  •  WATCH/LISTEN
     ON THIS STORY
    The BBC's Gillian Hargreaves
    talks to some pensioners to get their reaction to Mr Brown's speech
    The government's pre-Budget report will be on 27 Novewmber


    Analysis

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    See also:

    24 Apr 00 | UK Politics
    08 May 00 | Business
    26 Nov 01 | Business
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