Savers, pensioners, drivers, borrowers: the money winners and losers from 2024

From homeowners to drivers, who is finishing the year in a strong position and who has had 12 months to forget?

It’s been a year of financial ups and downs.

So who, from drivers to mortgage borrowers and pensioners, are ending the year well and who would prefer to put the past 12 months behind them?

The Winners

Workers on the National Living Wage

Employees on the National Living Wage received a much-needed fillip this year as their hourly rate is set to increase from the current level of £11.44 to £12.21 from next April.

This is an increase of almost 7% and boosts the annual pay packet of a full-time worker on this wage by £1,400.

Drinkers

Those who enjoy a quiet pint may have been celebrating at the Budget when the Chancellor cut duty on draught beer and cider by 1.7% or a penny off a pint.

However, that’s just for draught booze and the duty on other alcohol products, such as bottled beers and wines, will still be hiked by the rate of inflation.

Savers

Viewed as a whole, it has been a good year for savers with interest rates remaining relatively high.

Indeed, according to data service Moneyfacts, there are currently 1,629 savings accounts that can beat inflation, although this is 100 fewer than in September since the Bank of England cut the Base Rate to 4.75% from 5%.  

However, rates on short-term bonds and Cash ISAs continue to be cut, Moneyfacts says, and it is now difficult to find fixed returns paying more than 5% across ISAs and non-ISAs.

Meanwhile, the Bank of England says £252 billion is currently languishing in UK accounts earning no interest at all.

Home sellers

This year started out looking like it wouldn’t be great for the housing market, with estate agent Savills forecasting a 3% fall in house prices for the year last November.

However, the estate agent now predicts the year will end with a modest 2.5% increase in house prices, thanks to improved mortgage rates and slightly rosier expectations of UK economic growth.

Knight Frank similarly now expects a 3% rise in the UK overall and 2% in London. Not an amazing year but better than it could have been. 

However, mortgage rates have risen since the Budget and despite the cut in the Bank of England Base Rate to 4.75% over fears inflation may rise further.

Pensioners

Many pensioners may have other matters to complain about – see our ‘losers’ list below as they have managed to get themselves on both – but perhaps not the State Pension.

The Labour Government has committed to maintaining the ‘triple lock’. Under the legal requirement, the Government must increase the State Pension by average earnings growth, Consumer Price inflation (CPI) or 2.5% – whichever is highest.

This means that pensioners will see another above-inflation increase in the benefit in 2025/2026.

The triple lock was first introduced by the Coalition Government in the 2011/12 financial year.  

Given the Office for Budget Responsibility (OBR) expects inflation to rise by 2.6% in 2025 and State Pensions set to rise by 4.1%, this means a real term gain of 1.5%, according to analysts at Evelyn Partners.

While the State Pension alone may not be enough for pensioners to live on, it is at least of help and something of a safety net.

Drivers

Drivers experienced a reprieve at the petrol pump in October when new Labour Chancellor Rachel Reeves opted to freeze the expected increase in Fuel Duty until 2026.

Fuel prices are also currently at a three-year low, according to the RAC, despite a brief leap in October due to an escalation in the conflict in the Middle East.

The roadside breakdown group found the average price of petrol in October was up a third of a pence to 135.2p a litre, leaving the cost of filling up a 55-litre family car at around £74.40.

The price of diesel, meanwhile, rose by two-thirds of a pence to 140.2p, taking the cost of filling up a family vehicle to just over £77.

However, this isn’t the full story, as car insurance increased in 2024 due to higher inflation and the increased cost of labour and parts, although it’s recently eased back down slightly.

According to data from the Association of British Insurers, the average cost of a motor insurance policy was £612 between July and September this year – down 2% on the period between April and June but still 9% or around £50 more than the same period last year.

The average cost for an annual motor insurance policy was £50 more between July and September compared to the same period last year, according to data from the Association of British Insurers.

The Losers

Pensioners

Pensioners have wound up featuring on both the winners and losers lists this year.

While the Government gave with one hand, it has very much taken with the other.

A huge blow to pensioners this year was the shock news that the new Labour Government was to axe the Winter Fuel Allowance, worth £200 to £300 a year.  

In the controversial move, the Chancellor said the changes were necessary to help fill an alleged £22 billion “black hole” in the economy left by the outgoing Conservative Government.

The new Labour Government decided it was unfair that many wealthy pensioners were able to claim the benefit when they may not need it.

The fuel payment is now only available to pensioners on low incomes who qualify for Pension Credit.

The only silver lining to the cloud may be that the move encourages more pensioners to register for Pension Credit.

For some time, the Government has been struggling to get pensioners to claim for what they are due, so let’s hope the changes encourage some households to do so.  

You can find out if you are eligible here.

Those who qualify can get help with housing costs, council tax payments and NHS costs, among other benefits.

Farmers/inheritors

Britain’s farming community is unhappy at the new rules on inheritance introduced by the new Labour Government at the autumn Budget.

Outraged farmers have descended on Westminster en masse in their tractors to protest about the new inheritance tax regime relating to farm-owned property and land.

Under the new rules, those inheriting farm property will see the first £1 million left untouched, while inheritance over the threshold will be taxed at 20%.

Inheritors will have 10 years to pay and the Government says that those inheriting from a couple will benefit from a £3 million threshold before paying IHT.

Admittedly, the regime appears to be less onerous than it is for non-farming families, where those inheriting property currently only have an allowance of £325,000 and pay 40% tax on assets above this.

However, previously farmers paid no inheritance tax on farming property and land they inherited.  

Indeed, the farming community says the new regime will negatively affect the production of food in Britain for the foreseeable future, especially as the average farmer only makes £40,000 a year, forcing them to sell land.

They say that they are effectively "custodians" of their land and never see the value of it realised. 

The Government says only a handful of the most wealthy farms will be affected each year.

Officials say the new rules are to deter wealthy investors hiding their wealth in farmland and farming properties.

The National Farmers Union says it unfairly singles out elderly unmarried or divorced farmers and their offspring as those who are inheriting from married couples can claim the full £3 million allowance.

Watch this space to see how the protests play out and if the Government will relent on its new rules. 

Renters

Those renting their homes have been hit by shock increases in rent this year – with private rents up 8.7% in the year to October, according to the Office for National Statistics, (ONS) and up 10.4% in London.

The average rent is now £1,307 a month and tenants are spending around 36% of their incomes on rent, council tax and energy bills, making it harder to save for a deposit on a home if they wish to buy.

As such, many renters are forced to find somewhere smaller and more affordable to rent in less desirable areas or move back into shared accommodation.

Property experts say there are an average 10 prospective tenants for each available property, pushing the prices up further.

Mortgage borrowers

Those looking to buy a new home or remortgage may be dismayed to hear that the cost of mortgage borrowing is going up.

This comes despite the recent cut in the Bank of England Base Rate from 5% to 4.75%.

A number of lenders have increased their rates by 0.2% to 0.6%, including Santander, NatWest, HSBC and Barclays, with sub-4% rates now a thing of the past.

Industry experts say mortgage lenders are putting up rates to compensate for increased costs as they deal with more applications.

In addition, it’s thought that lenders are also pricing in a future rise in inflation with Donald Trump set for a second term as US President next year.

Trump is widely expected to introduce trade tariffs, which could increase inflation globally and lead to higher interest rates in the UK.

Employers and employees

The Labour Party pledged in its election manifesto not to increase taxes for “working people”.

However, apparently business owners do not come under this bracket as, instead, the Government chose to hike National Insurance payments for employers.

From April next year, employer National Insurance (NI) contributions will increase from 13.8% to 15%.

The rate at which employers pay NI contributions will rise from 13.8% to 15% from April 2025, but for some businesses, the change in earnings thresholds will be even more significant.

What’s more, businesses will have to pay NI contributions on an employee earnings threshold of £5,000, rather than the previous £9,100.

And while employees may have been shielded from the increase on paper, in reality, it is likely that they may pay the price in fewer pay rises and possibly even job losses in the future, if small businesses are unable to cover the additional costs.

Investors

Investors have been hit by an increase in Capital Gains Tax (CGT) following the autumn Budget.

They will now see the rate they pay increase from 10% to 18% for the lower rate of CGT and from 20% to 24% for the higher rate.

Unusually, the increase was immediate rather than starting in the new financial year.