In a series of financial adjustments set to take effect in April as the new UK tax year begins, several households are poised to experience boosts in income and savings opportunities. A notable change involves the high income child benefit charge threshold, which is set to increase from £50,000 to £60,000. This adjustment is expected to benefit around 170,000 families, reducing the charge to 1% for every additional £200 earned above the new threshold and potentially increasing some families’ income by an average of £1,260.

Moreover, the introduction of British Savings Bonds is anticipated. These bonds will offer guaranteed returns over a three-year period for investments between £500 and £1 million. The attractiveness of these savings bonds will largely depend on the interest rate offered. In addition, the flexibility of Tax-efficient Isas is being enhanced, allowing savers to open multiple accounts of the same type within a year, aiming to help maximise returns.

Pensioners are set to benefit from an 8.5% increase in the state pension, resulting in a weekly payout of £221.20. Changes to national insurance rates for employees and self-employed individuals are also on the horizon, with reductions expected to save the average worker over £900 annually. However, individuals are advised to be mindful of frozen tax thresholds, which could inadvertently elevate them into higher tax brackets over time.

In separate news, starting April, statutory sick pay in the UK will see an increase of £7.30, marking a 6.7% rise. This move comes amid calls from a group of MPs for a more significant £63 increase to better support workers unable to work due to illness for up to 28 weeks. Currently, employees can receive £109.40 per week under statutory sick pay, with the potential for additional top-ups from employers who have their own sick pay schemes. The eligibility criteria include being classified as an employee, earning at least £123 per week on average, and being ill for more than three consecutive days. These financial adjustments and policy changes reflect a broader effort to alleviate financial pressures for UK households and provide additional support for those in need.