Conservative plans for the economy

Posted by Amy Flower in Personal Finance on 18 May 2015 - Amy is a Senior Credit Analyst at checkmyfile

David Cameron and the Conservatives have spent the last 5 years in coalition with the Liberal Democrats, making cuts and getting the economy in the position we are in today. The next 5 years in office has also been planned and has a lot in store for our finances, from income and inheritance tax to pensions; to housing and household bills.

The Conservatives have looked at income tax and decided that this allowance should increase from the current rate of £10,600 to £12,500 by 2020. They are also planning to increase the bracket for higher earners paying 40% tax from £42,385 to £50,000. They have also promised to legislate against increasing income tax, VAT and National Insurance within this parliament.

Inheritance tax plans are to allow a personal allowance to increase by an extra £175,000, which brings a couples allowance to £1m. This would be exclusively for their home with no duties to pay upon their death. If there any shares or additional finance to sort this would then be subject to the laws in place.

The current ‘Triple Lock’ arrangement in place for pensions will remain and this is to keep a 2.5% rise based on inflation, wages or earnings, whichever is the highest. The not so good news is for the wealthiest pensioners who are earning over £150,000, who will have their savings allowance reduced from £40,000 down to only £10,000. The lifetime allowance will be reduced also in April 2016 from £1.2m to just £1m.

There is now speculation over selling annuities and the rules that were introduced by the Coalition. Now being in full control, the Conservatives could decide to reverse this decision so we will wait to see what plans they have.

Housing was and still is a major issue, especially for first-time buyers and affordable housing. The Conservatives have made a pledge to get at least double the amount of first-time buyers into a home they can afford, in an area they want to live in, by the end of their term in Government.

They plan to extend their Help to Buy scheme with the new Help to Buy ISA, announced in this year’s budget from George Osborne. The ISA offers a payment of £50 per £200 saved towards a house deposit. If the saver has saved £12,000 themselves they will receive the maximum of £3,000. For low income earners who live in council or Housing Association property, the Tories have extended the Right to Buy Scheme, allowing them to purchase their rented council property and giving them the first step onto the housing ladder.

Finally household bills; there are no plans in this Government’s term to cap energy suppliers’ bills, which is not great in terms of making savings and being able to budget long term. However, there are still some good fixed rates deals to be had. There is a proposal to enable a one day switch service, so that changing suppliers is a quick and easy transaction.

Commuters have had their rail fares frozen and regulated fares will be capped to stay in live with RPI. There is another element of train fares, that allows a rail line to increase their fares by 5.5% but this still has be remain lower than RPI’s 1%. Meanwhile, fuel duty is still frozen and has been since March 2011, although a planned rise in line with RPI was predicted for September and has since been scrapped.

How does APR work? – Your questions answered

APR stands for Annual Percentage Rate and is a standard measure that allows you to compare the total cost of credit from different lenders.

Published on 30 Aug 2019 by Andrew Brown

Full Article

Check your Multi Agency Credit Report before the PPI deadline

The PPI deadline is at 11.59pm on Thursday 29 August. After this point, you can no longer submit applications to reclaim any PPI you are owed from lenders. If you’ve not done it, the time is now to check whether you are owed money. If you start your PPI application before the deadline, it’s still possible to reclaim what you’re owed.

Published on 28 Aug 2019 by Andrew Brown

Full Article

How interest rates are calculated

If you’ve ever applied for a form of credit, you may well have discovered to your cost that the advertised APR and the interest rate you’re offered if you are accepted can be very different things.

Published on 14 Jun 2019 by Richard Catlin

Full Article

The Importance of Proving Stability to Lenders

In addition to the key roles that your Credit History and Affordability play in determining whether or not you will be accepted for credit, we regularly talk about the importance of being able to demonstrate your ‘stability’ to potential lenders.

Published on 15 Mar 2019 by Sophie Regester

Full Article

If I Change My Name Can I Still Get Credit?

Legally changing your name is an increasingly popular thing to do in the UK: while getting married or divorced still makes up a large proportion of this, there is a growing trend towards people changing their name following civil partnerships, a change in gender, living in blended families, or simply because they’re seeking a change – the list is long.

Published on 22 Feb 2019 by Tom Magor

Full Article

Which Credit Report Information Can Landlords See

These days whenever you rent a property you may be required to pass checks set by the landlord or letting agent to prove that you will be a good tenant and that you’ll be able to reliably make rent payments to the property on time.

Published on 7 Feb 2019 by Kevin Pearce

Full Article

What Credit Checks Look For When You Switch Energy

As we get deeper into Winter, it’s inevitable that millions of consumers across the UK will end up using more energy and spending more on bills due to the colder weather and long stretches of darkness.

Published on 9 Jan 2019 by Jamie Mackenzie Smith

Full Article

Pros and cons of going paperless

Whether you are environmentally motivated or simply to get a discount for moving your billing online, you might find it makes sense to abandon paper for your business, if you haven’t already.

Published on 7 Dec 2018 by Kevin Pearce

Full Article

How To Get The Best Car Finance Deals

New car sales may have slowed in recent years, with the economy, emissions scandals and Millennials all being cited as the root cause at one point or another. But the number of people choosing to use credit as a means of driving away in a new car continues to rise, according to figures from the Finance & Leasing Association which shows that the new car finance market grew by 15% in July 2018 when compared to the previous year.

Published on 8 Oct 2018 by Kiah Phillips

Full Article

We're Now More Likely To Be Borrowers Than Savers

UK Households are now more likely to be borrowers than savers, with savings at their lowest since 1963, according to a study by the Office for National Statistics. Households are increasingly borrowing more – by taking out loans, car finance, and mortgages – than they are collectively depositing into savings accounts.

Published on 5 Oct 2018 by Sam Griffin

Full Article


We are rated number 1 for customer service on