Queen's Speech 2015: what it means for your money
The Government's legislative programme has plenty of money measures included.
Her Majesty the Queen has delivered her annual speech at the State Opening of Parliament.
The speech outlined the new Government’s legislative agenda for the next year, and there was plenty in there that will make a difference to your money.
Housing
What the Queen said:
“Legislation will be introduced to support home ownership and give housing association tenants the chance to own their own home.”
What the Government wants to do:
The Government has pledged to extend the Right to Buy scheme, which allows housing association tenants to buy their homes at a discount, to 1.3 million tenants.
The Housing Bill will also include 200,000 starter homes being made available for first-time buyers at a 20% discount.
Taxes
What the Queen said:
“Legislation will be brought forward to ensure people working 30 hours a week on the national minimum wage do not pay income tax, and to ensure there are no rises in income tax rates, value added tax or national insurance for the next five years.”
What the Government wants to do:
New legislation will be brought forward to ensure that increases to the personal tax allowance – the amount you earn before paying tax – reflect changes to the minimum wage.
In addition, the Conservatives promised during the election to introduce legislation to guarantee there would be no rises in Income Tax, VAT and National Insurance over the course of this parliament.
Jobs
What the Queen said:
“Legislation will be brought forward to help achieve full employment and provide people with the security of a job. New duties will require my ministers to report annually on job creation and apprenticeships.”
What the Government wants to do:
As part of the full employment and welfare benefits ministers will have to report to parliament annually on the progress towards creating a further three million apprenticeships.
Childcare
What the Queen said:
“Measures will be brought forward to help working people by greatly increasing the provision of free childcare.”
What the Government wants to do:
One of the Government's manifesto pledges was to give 30 hours a week of free childcare (for 38 weeks of the year) to working parents of three and four year olds.
Benefits
What the Queen said:
“To give new opportunities to the most disadvantaged, my government will expand the troubled families programme and continue to reform welfare, with legislation encouraging employment by capping benefits and requiring young people to earn or learn.”
What the Government wants to do:
The benefits cap will be lowered to £23,000.
In addition, automatic entitlement to housing support will be removed for 18-21 year olds. There will be a new Youth Allowance too – after six months young people will be required to go on an apprenticeship, training or community work in order to continue receiving it.
Pensions
What the Queen said:
“Measures will also be brought forward to secure the real value of the basic State Pension, so that more people live in dignity and security in retirement. Measures will be brought forward to increase the rights of victims of crime.”
What the Government wants to do:
This is a reference to continuing the 'triple lock' which determines how much the State Pension increases by each year. It ensures that the State Pension will increase by the highest of the growth in average earnings, prices inflation, or 2.5%.
As a result of mediocre earnings growth and low inflation, the State Pension increased by 2.5% in April.
Scotland
What the Queen said:
“My Government will also bring forward legislation to secure a strong and lasting constitutional settlement, devolving wide-ranging powers to Scotland.”
What the Government wants to do:
The Scotland Bill will enable the Scottish Parliament to set the thresholds and rates of Income Tax on earnings in Scotland, and keep all of that money. Responsibility for Air Passenger Duty and the Aggregates Levy will also be devolved.
On welfare, the Scottish Government will be able to vary the frequency of Universal Credit payments in Scotland, while it will also be able to set the rules over a range of benefits which affect carers, disabled people, the elderly and to control programmes which help people find work.
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