Budget 2014: Winners and losers

If you have savings, a fat pension pot or a liking for beer and bingo you will do well from the Budget

When George Osborne suggested in his Budget speech that the economy was recovering faster than forecast, millions probably wondered when that recovery would trickle down to them.

"Support for savers is at the centre of this Budget," the Chancellor promised. He backed that up by increasing the amount you can stash in a tax-free Isa to £15,000 from July and scrapping the distinction between cash and equity Isas to allow people to shift money between the two.

He then announced widescale changes to pensions – which are, after all, just long-term savings schemes – to make them more flexible and stop people being forced to take out an expensive annuity with their pension pot.

All positive for those with more than £11,000 of savings or a decent sized pension pot. But what about the millions of "hard-working people" – as Osborne's oft-repeated mantra has it – who have neither? Is there any good news in the Budget for them?

Read more: The Independent's Budget coverage in full

No. Not unless they're beer-drinking bingo-players in a two-parent family where both parents work.

If that's not you either, how will the changes announced in this year's Budget affect you? In fact, with savings rates at historic lows, even those who can afford to stash a few thousand in the new-look Isas won't be that better off in the short-term.

It is calculated that moving money from a standard deposit account into an easy access Isa up to the new limit will yield only an extra £30 worth of interest in a year.

Meanwhile, if you're a smoker, drinker or driver (hopefully not the last two together) your bills will rise. The personal finance website Money Dashboard has crunched some numbers for us to see how the changes will affect you.

In a nutshell, they reckon smokers will pay £69.06 more a year, drinkers will have to find an extra £19.76, while drivers will pay an additional £38.32 a year.

So who are the actual winners and losers after the 2014 Budget? Our analysis of the figures published on these pages, calculated by accountants Blick Rothenberg, reveals that, other than well-heeled savers who will benefit from the pension and Isa changes, there are two particular categories of people who will be better off than all others in the next tax year 2014-15, taking into account the latest changes to the tax regime.

The biggest winners will be married couples where both partners earn, who have two children, but who earn £30,000 a year gross between them. They will be a far-from-generous £33 better off.

Celebrating, if that's not too strong a word, that extra cash for the household budget next year, with the same £33 boost, will be pensioner couples born between 1938 and 1948 whose gross income is an already generous £150,000 or more.

However, the extra £2.75 a month is probably going to mean less to them than to the married couple with kids, even though the extra cash only just covers the cost of a comic once a month for their children.

 

Who will be worse off next year? Most working people earning £125,000 a year or more will be hardest hit, facing a £4 deficit in their post-tax income in 2014-15.

That includes single people and married people with two kids where just one parent earns. Oddly enough, if both parents earn a total of £125,000 or more, their income is set for an annual boost of £28.

What about in the tax year 2015-16? A married couple who are both earners and have two children will be £40 better off if they earn £25,000. If they earn less, just £20,000, they can look forward to being £39 better off in 2015-16.

However, if a married couple with two children has just one partner earning, they will be £39 better off if they earn between £15,000 and £30,000.

The 2015-16 losers? It's those working people earning £125,000 a year who who will face a second year of being hardest hit. Single people and married people with two kids and one earner will see their incomes shrink by a further £3 in the tax year after next.

How will you do? Check your income against that closest to your own, according to which category you fall nearest to. The majority are a few quid better off, which is presumably largely down to the increase in the personal tax allowance to £10,500.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksA special investigation by Andy McSmith
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SThree: HR Benefits Manager

£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...

Recruitment Genius: Office Manager / Financial Services

£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...

Jemma Gent: Year End Accountant

£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...

Jemma Gent: Management Accountant

£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...

Day In a Page

HIV pill: Scientists hail discovery of 'game-changer' that cuts the risk of infection among gay men by 86%

Scientists hail daily pill that protects against HIV infection

Breakthrough in battle against global scourge – but will the NHS pay for it?
How we must adjust our lifestyles to nature: Welcome to the 'Anthropocene', the human epoch

Time to play God

Welcome to the 'Anthropocene', the human epoch where we may need to redefine nature itself
MacGyver returns, but with a difference: Handyman hero of classic 1980s TV series to be recast as a woman

MacGyver returns, but with a difference

Handyman hero of classic 1980s TV series to be recast as a woman
Tunnel renaissance: Why cities are hiding roads down in the ground

Tunnel renaissance

Why cities are hiding roads underground
'Backstreet Boys - Show 'Em What You're Made Of': An affectionate look at five middle-aged men

Boys to men

The Backstreet Boys might be middle-aged, married and have dodgy knees, but a heartfelt documentary reveals they’re not going gently into pop’s good night
Crufts 2015: Should foreign dogs be allowed to compete?

Crufts 2015

Should foreign dogs be allowed to compete?
10 best projectors

How to make your home cinema more cinematic: 10 best projectors

Want to recreate the big-screen experience in your sitting room? IndyBest sizes up gadgets to form your film-watching
Manchester City 1 Barcelona 2 player ratings: Luis Suarez? Lionel Messi? Joe Hart? Who was the star man?

Manchester City vs Barcelona player ratings

Luis Suarez? Lionel Messi? Joe Hart? Who was the star man at the Etihad?
Arsenal vs Monaco: Monaco - the making of Gunners' manager Arsene Wenger

Monaco: the making of Wenger

Jack Pitt-Brooke speaks to former players and learns the Frenchman’s man-management has always been one of his best skills
Cricket World Cup 2015: Chris Gayle - the West Indies' enigma lives up to his reputation

Chris Gayle: The West Indies' enigma

Some said the game's eternal rebel was washed up. As ever, he proved he writes the scripts by producing a blistering World Cup innings
In Ukraine a dark world of hybrid warfare and murky loyalties prevails

In Ukraine a dark world of hybrid warfare

This war in the shadows has been going on since the fall of Mr Yanukovych
'Birdman' and 'Bullets Over Broadway': Homage or plagiarism?

Homage or plagiarism?

'Birdman' shares much DNA with Woody Allen's 'Bullets Over Broadway'
Broadchurch ends as damp squib not even David Tennant can revive

A damp squib not even David Tennant can revive

Broadchurch, Series 2 finale, review
A Koi carp breeding pond, wall-mounted iPads and a bathroom with a 'wellness' shower: inside the mansion of Germany's 'Bishop of Bling'

Inside the mansion of Germany's 'Bishop of Bling'

A Koi carp breeding pond, wall-mounted iPads and a bathroom with a 'wellness' shower