Chancellor John Healey has unveiled his inaugural Budget, introducing several economic measures such as a £100 energy payment for millions of households and an increased tax burden on banks. In response to these policy shifts, consulted citizens across a broad spectrum of income levels to gauge how the financial changes impact their daily lives. Has been speaking to people on a range of incomes on how they feel about their finances and how the Budget affects them.
For 48-year-old Dave Herbert, a professional vehicle delivery driver based in Ynysddu, the primary frustration lies in the lack of a fuel duty cut. And he was disappointed this didn’t happen, the only measure Dave wanted to see was a cut to fuel duty.
Commuting 62 miles round-trip to Cardiff, Dave reports spending approximately £350 monthly on petrol, an increase of 40% to 50% since the start of the year. He spends around £350 a month on petrol for work and personal use. A 62-mile round trip from his home in Ynysddu. “I’d love to have a hybrid car but even an entry-level used car is too expensive, he has to commute into Cardiff. Broadband, my car and some money to socialise, i’d need a TV licence. According to robert’s biggest expense currently is his car, which he, He needs for his 32-mile round trip to work at Newcastle Airport.
While the government has opted to keep the fuel duty rate frozen at 57.95p per litre—a policy in place since March 2011—Dave remains dissatisfied. He describes his situation as a struggle to find funds from an already strained budget and notes that he dreads each trip to the pump, arguing that the frozen rate provides no real relief. According to the 48-year-old, who is married with a 12-year-old daughter,, He has to find the extra money for fuel “from an already tight budget” and “dreads” filling up at the pump. And it will be frozen again, but Dave says: “It sounds like they’re giving us something by keeping it frozen but they’re actually still taking it off us, the main fuel duty rate has been frozen at 57.95p per litre since March 2011. He would like to get on the housing ladder but for now it feels a distant prospect. According to she’s very grateful that the rent she pays on her south London maisonette is set below the market rate as it is housing association accommodation, but, Life was easier when she shared the bills. “Two incomes make a massive difference.
The outlook is equally challenging for 19-year-old Emily Nelson from Swindon, who earns £4,062 annually.
Having finished her A-levels last year, she has struggled to secure employment in the animation sector and is currently applying for retail and sales roles. She doesn’t hear back from potential employers, most of the time.
She expressed frustration that the government is delaying legislative action on youth unemployment while awaiting a review. I’m frustrated there’s no action on NEETs yet.
Although she acknowledges the government’s awareness of the issue, she feels the wait for concrete support is stifling.
Emily advocates for increased funding for business training and an expansion of the Jobs Guarantee scheme, suggesting that eligibility should commence after one year of seeking work rather than eighteen months. The scheme, being rolled out across England, Scotland and Wales, guarantees fully funded, six-month paid jobs for 18 to 24-year-olds who have been on universal credit and looking for work for 18 months.
Financial constraints also dominate the life of 29-year-old Robert Portlock from Gateshead, who earns £22,000 per year. Despite his desire to live independently, he calculates that rent for a small local flat would consume two-thirds of his monthly income. With car-related expenses totaling £750 a month, he views the current cost-of-living assistance as inadequate. He characterizes the £100 annual energy allowance as negligible—less than £10 a month—and believes food tariff actions offer minimal savings, joking that the amount would barely cover the cost of a small confectionery item. He says, while action on tariffs on food items will save only £21 a year, or £1.75 per month, the £100 household energy allowance over a year is less than £10 a month.
Conversely, 40-year-old Chloe Chin-Saad, who earns £41,000, feels more optimistic about the changes. Supporting her 16-year-old son, she finds managing rising energy bills, which have hit £200 per month, to be a constant challenge. However, she views the removal of standing charges on gas and the upcoming household energy payment as positive steps. Despite limiting her weekly shop to £40 and cutting out luxuries, she views these targeted adjustments as a sign of hope for the future. Chloe, Emily and Robert all spoke to about what they would like to see in the Budget. It’s all you really can do, i’m trying my best. What am I going to buy with that – a Freddo.
On the higher end of the spectrum, Jonathan Whitwam, a finance professional earning £150,000, suggests that the government should have taxed higher earners more aggressively. Living in Essex, Jonathan’s primary financial burden is supporting his two daughters through university. He estimates that each daughter will enter the workforce with debts between £45,000 and £60,000, compounded by annual interest rates of £5,000 to £8,000. While he supports the value of a degree, he argues that the current interest rates on student loans act as a significant burden that should be capped or waived. But Robert says: “Saving for a house is impossible at the moment, the government has announced a scheme to help first-time buyers in England who have a deposit of 2.5%.
