The elderly, farmers, and pension holders bear the brunt of Budget changes, in this latest article from Tony Larkins of Beacon Wealth Management.
Reflecting on the last Budget from HM Government, it sent shockwaves throughout the nation and will negatively impact a lot of people.
One of the most divisive decisions was not implementing a cap on long-term care costs, disproportionately affecting the elderly. Without a cap, many families face mounting, unmanageable expenses for essential care services, placing them under severe financial strain. Compounding these challenges, the Government also withdrew the Winter Fuel Allowance, a vital support for older people struggling with rising energy costs during colder months. Together, these measures threaten the quality of life for many already dealing with the complexities of ageing.
Employers are also feeling the pinch. An increase in National Insurance contributions will make it more costly to hire staff and stifle business growth. Meanwhile, farmers, who are crucial to our food supply and countryside maintenance, face harsher inheritance tax (IHT) rules. Many may now have to sell land or take out loans to cover these taxes, with rising interest rates further squeezing their modest incomes, whilst some wealthier landowners may remain unaffected.
Pension holders are another group hit by the Budget. From April 2027, unused pension funds and death benefits will be included in estate valuations for Inheritance Tax (IHT) purposes. This could push previously untaxed estates above the IHT threshold. One example showed a pension fund left on death could attract a 91% tax charge.
While steps can reduce tax liabilities, a shortage of qualified financial advisers in the UK could leave many without the guidance they need to navigate these changes.
Both the stock market and employers did not respond well to the Budget – we can only hope that improvements can be made on the issues that have been raised.
As a Chartered Financial Planner and former Accountant, I see potential benefits for my practice with new clients needing advice. However, since much of our advice is free, these changes will bring more work – not the chargeable kind, but the administrative kind!
If you have an adviser, seek advice soon. If not, now is the time to find one.
Beacon Wealth Management helps people and businesses across Cambridgeshire and the East Midlands manage their finances and plan for their financial futures.
For more information, call 01480 869466, email info@beaconwealth.co.uk or visit www.beaconwm.co.uk.
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