Here are the 10 biggest changes to benefits, wages, taxes, and pensions coming in 2020

These are 10 of the biggest changes coming to people’s benefits, wages, taxes, and pensions in 2020.

Next year could have a very different financial outlook for millions of people in the UK, as the government brings in a raft of changes.

So here are the top 10 of the reforms due to be brought in.

Hide Ad
Hide Ad

Rail fares

Britain has among the most expensive - and least efficient - trains in the developed world. And from 1 January 2020, the cost of an average ticket is expected to rise by 2.7 per cent - almost double the current rate of inflation.

Regular rail users may be able to bypass the price hike by purchasing their season tickets before the end of this year.

Broadband charges

New Ofcom rules mean internet suppliers will have to tell their customers when they reach the end of their contract - as well as any price changes that might be put in place at that time.

Under the new rules, companies will also be forced to tell their customers about the best deals available to them.

Hide Ad
Hide Ad

From March, UK residents in areas where broadband speeds are slow or non-existent will be able to request improved service.

New notes

New polymer £20 notes will replace the old cotton-based ones in February next year. It comes after the success of the new £5 and £10 notes.

Current £20 notes have a portrait of Scottish economist Adam Smith on the reverse. But he will be replaced on the new notes with the likeness of the famous artist JMW Turner.

Wage rise

Minimum wage rises are usually announced in the autumn budget, but Chancellor Sajid Javid is expected to confirm the changes in his budget in February.

Hide Ad
Hide Ad

While an exact figure has not been confirmed, plans suggest the minimum wage will rise from £8.21 per hour to £8.67 - for those aged 25 and over.

Inheritance tax

Inheritance taxes have been scaled back steadily since 2017, and that trend is set to continue in 2020.

Tax breaks are due to reach £175,000 in April, and a couple who leave a property worth £1 million could do so tax free.

Some rules still remain in place, however, like the requirement that the property be left to a child, grandchild, a step child, or a step grandchild.

Hide Ad
Hide Ad

National Insurance

The Conservative’s manifesto pledged to change the thresholds for National Insurance payments, meaning many people will be charged less.

The move will see the first £9,500 of your earnings protected - up from £8,632 currently.

But while it will save around £100 per year for people on low incomes, it will mean that they could lose credits that go towards their state pension pot when they retire.

Student loans

Recent graduates currently have to earn £25,575 before student loan payments kick in. But under changes due to come into force next year, they will see that number rise to £26,575.

That should save them each around £80 per year.

Hide Ad
Hide Ad

People who graduated between 1998 and 2011 will see payments kick in at £19,390, instead of the current rate of £18,935.

State pension

While not yet confirmed, the government is expected to announce a rise to state pension payments.

Pensioners may be in for a rise of 3.9 per cent - way above the current rate of inflation - in April.

That would mean an added £6.60 per week to retirees on the new state pension, and £5.05 per week for those on the old version.

Hide Ad
Hide Ad

That would mean an added £6.60 per week to retirees on the new state pension, and £5.05 per week for those on the old version.

Council tax

Council tax will rise by two per cent in April, with some larger councils able to raise them by up to four per cent to cover adult social care costs.

Councils will also be able to push for higher taxes, but will need to have them approved by a local referendum first.

TV licences

The BBC is set to scrap free TV licences for over-75s from June 2020 - though people receiving Pensions Credit will still keep theirs.

Hide Ad
Hide Ad

The controversial decision comes amid a row over the funding of the BBC, which has come under sustained pressure from the government.

BBC chairman David Clementi said, “It is the fairest and best outcome. It is one we can implement and endorse. This is an outcome that is the fairest possible in difficult circumstances.”

The BBC insists that the Government could step in and restore them whenever it felt like it.

Related topics: