Five things hidden in 2021 budget documents, including higher flight costs and interest-free loans

RISHI Sunak presented his 2021 budget plan to help struggling families and keep UK businesses afloat.

Here are five things hidden in official documents, including higher flight fees and interest-free loans.

?? Read our 2021 Budget Live Blog for the latest news and updates

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Rishi Sunak presented his plan for the 2021 budgetCredit: AFP or licensors

1. Extended Universal Credit Surplus Threshold

Universal credit applicants continue to benefit from the upper surplus threshold of £ 2,500 until April 2022.

After this time it will be reduced to £ 300.

The excess income is taken into account in your next monthly assessment period for Universal Credit.

For example, if your monthly income exceeds the point at which your payment stopped (the current threshold) by more than £ 2,500, it becomes “excess income”.

These surpluses are then carried over to the following month where they are counted in your earnings.

If your regular income and surpluses are then still greater than the amount at which your payment stops, your Universal Credit payment will be affected.

2. Suspension of MIF universal credit extended

Mr. Sunak has confirmed that he will not be reinstating the universal credit minimum income floor until the end of July 2021.

It will be gradually reintroduced from August 2021, but coaches from the Ministry of Employment and Pensions will have the discretion not to apply it on an individual basis.

The minimum income threshold was initially to be reapplied from April 2021.

This is the amount you are supposed to earn each month, and it is used to calculate the universal credit you get on top of your income.

It applies to those who have been self-employed for more than a year.

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3. More time to repay Universal Credit loans

The Chancellor confirmed he was proposing several changes to loan repayments, including how long does it take to repay an advance.

An advance is an initial loan up to the value of the first universal credit amount a person is expected to receive.

Advances are currently due to be repaid in installments from future Universal Credit payments over the next 12 months – but that repayment period is expected to increase to 24 months.

Deductions are currently capped at 30% of the standard abatement, but will be reduced to 25%.

The following measures will now enter into force from April 2021 instead of October 2021.

4. Increase in air passenger rights

A family of four will need shell out an additional £ 20 go on vacation.

Taxes on long-haul flights will rise despite calls from airlines to remove them – although short-haul fares remain frozen.

Air passenger law Fares (APD) for UK departures will increase by £ 2 per economy ticket, from £ 80 to £ 82, and £ 5, from £ 176 to £ 181, for premium, business and premier cabin passengers class.

This means that a family of four on a long-haul flight could be forced to pay an additional £ 20 for their flights.

However, the ADP does not apply to return flights to the UK or to children under 16.

The change is consistent with the RPI inflation measure.

5. Interest-free loan trial

The government will test an interest-free loan program to help low-income households repay their unscheduled debts.

He pledged £ 3.8million to the pilot program to keep vulnerable Britons from taking on more debt.

The government said short-term loans would be given to help cover unforeseen costs, such as late rent due to lost income.

The loans would support vulnerable clients who would otherwise have to rely on high cost credit to get them through.

Borrowers who have turned away from traditional lenders, for example because they have a bad credit history, often turn to creditors like home lenders, who charge exorbitant interest rates.

Additional charges can often push households into more debt.

A government-funded interest-free loan would reduce the risk that borrowers would struggle to meet interest charges and mean the British would only have to pay back what they borrowed.

Wales already offers a program similar to tenants in arrears of rent Due to coronavirus crisis.

The government has yet to release more details on the program, such as who is eligible, how much the loans are worth, and how long borrowers will need to repay it.

Budget 2021: all the key points of Rishi Sunak’s announcement, from mortgage aid to money on leave

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