Martin Lewis’ MSE issues warning over four things NOT included in Budget

Martin Lewis and his Money Saving Expert team have issued a warning over four things NOT included in the Budget. The BBC Sounds podcast host and his MSE team have spoken out over the Labour Party Budget, which was delivered on October 30.

Speaking out on Wednesday in the wake of Chancellor Rachel Reeves' address, MSE said: "Ahead of the Budget, Martin wrote to the Chancellor and we also told HM Treasury our campaign asks. None of these were included in today’s announcement. Here’s a round-up of what we asked for and what DIDN’T happen:

"Cancelling the Lifetime ISA withdrawal penalty for first-time buyers purchasing homes above the scheme’s £450,000 property price cap and/or raising the limit. Renaming the Tax-Free Childcare scheme to help 800,000 families missing out.

READ MORE Petrol and diesel drivers being handed free £130 from today under Labour

"Making the new Winter Fuel Payment eligibility criteria less restrictive. Tackling the hardship faced by mortgage prisoners." Writing Ms Reeves previously, Mr Lewis said of Lifetime ISAs: "It means many who have saved in a LISA to build a deposit, as the state encouraged them to do, now face paying the Government a fine simply to access their money to buy a first-time property – as they’re now priced out and it’s above the threshold.

"On £20,000 saved, the 25% bonus added is £5,000, but the withdrawal penalty is £6,250, so they end up with £1,250 LESS than what they put in. This penalty was imposed to stop LISAs being used for unintended reasons – people are now being fined for using those LISAs on exactly what they were intended for."

On tax free childcare, he added: "It’s nothing to do with tax, and it’s not tax-free, rather it’s a welcome 25% top-up to what working parents put away for childcare costs. The misnaming of the system has caused damage – meaning fewer people understand it and therefore fewer claim it. With only 800,000 of the 1.3 million estimated to be eligible claiming, a change is needed."

Mr Lewis has also been critical of Winter Fuel Payment changes, and on mortgage prisoners, he said: "200,000 trapped in high-interest mortgages, after the state sold their loans on to uncompetitive, sometimes unregulated lenders. The prior administration promised, but didn’t deliver, a response to the reports I commissioned from the LSE, which included costed solutions."