HELP FOR THOSE JUST ABOUT MANAGING (JAM)
The Chancellor made a number of announcements that were intended to help those families that a just about managing, given the acronym – JAM. Raising the personal allowance to £11,500 and higher rate threshold to £45,000 will mean they pay less income tax and keep more of what they earn.
This group will also benefit from the increase in the National Living Wage to £7.50 an hour and the changes to Universal Credit.
The Universal Credit taper rate will be cut from 65% to 63% from April 2017 which will mean that fewer benefits will be clawed back as claimants’ income increases. The planned reductions in the overall benefits caps will however go ahead.