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Budget March 2010 - savings and pensions

  • Published: Friday, 25 June 2010

This page is about the details of the March 2010 Budget. The Chancellor has guaranteed that everyone will have the right to a basic bank account. In pensions, there are changes to the Working Tax Credit rules for people aged over 60.

Budget 22 June 2010

What is the Budget?

Find out what the Budget does and what takes place on the day

The March 2010 Budget was the final Budget for the last Labour government. George Osborne, Chancellor of the Exchequer for the new coalition government, delivered his first Budget on Tuesday 22 June 2010.

The new Budget may affect some of the information below. To read more about the June Budget, click the orange button.

Savings

Budget March 2010 announced that the first Saving Gateway accounts would be available in July 2010. However it was cancelled in the June 2010 Budget.

Bank accounts

The government made a guarantee that everyone can have a basic bank account. This will mean up to one million more people will have access to bank accounts over the next five years.

Working Tax Credit for people over 60

The number of hours people aged 60 have to work to qualify for Working Tax Credit will be reduced. This means people over 60 who work at least 16 hours per week will be able to claim Working Tax Credit.

Retirement and working age

The government is going to look at the law that gives employers the right to make people retire at 65. The government is looking at the following options:

  • scrapping the default retirement age of 65
  • raising the retirement age
  • reforming the legislation to give the employee more choice over when they will retire

No changes will be made before April 2011.

Pensions tax relief

From April 2011 tax relief on pension contributions will be restricted for people on gross incomes of £150,000 or more each year, subject to an income floor of £130,000 a year.

Instead of getting back the full amount of tax on pensions contributions, the amount of tax you get back will gradually reduce down to 20 per cent.

How much tax relief you get will depend on how much more than £130,000 you earn.

If you earn £180,000 or more per year, you will only get 20 per cent tax back on your pension contributions from April 2011.

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Additional links

Budget Day 2011

Budget 2011 on Directgov

Budget June 2010

Full coverage of the new government's first Budget

Online benefits advice

If you need advice on benefits, pensions and credits, see what you might get by using the online calculator

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