Money changes in January including National Insurance cut and new childcare application
02.01.2024 - 12:00
/ manchestereveningnews.co.uk
The new year is bringing a wide range of new money changes that could personally affect your wallet.
One of the biggest changes to come in this month is the new Ofgem energy price cap which was implemented on January 1. It means that annual energy bills have risen from £1,834 to £1,928 - a 5 per cent increase.
This is for a typical dual-fuel household paying by direct debit and will remain in place until March 31. However it is worth remembering that your actual bill can be more or less than the price cap, depending on how much energy you use.
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There are a host of other changes which will be introduced in January which will affect working parents, self-employed workers and members of the general public. It's important to stay on top of any changes coming into place that could affect your personal finances.
Applications have now opened for working parents of two-year-old children in England to get 15 hours of free childcare a week. The new childcare scheme will come into place from April 2024.
Currently, only parents with children aged three and four can claim form 15 to 30 hours free childcare, however, the government confirmed the rules will be expanded in April and then once again next year.
In September 2024, parents of nine-month-olds will be able to receive up to 15 hours of childcare.
Workers will receive a cut to their national insurance contributions. Currently, workers pay 12 per cent of their income on Class 1 National Insurance contributions over £12,570.
From January 6, contributions will be cut to 10 per cent, with the threshold remaining frozen until April 2028.
The Office for National Statistics (ONS) will release