Budget summary: this year’s changes explained

There was some good news in the Budget for people on a lower income with the National Living Wage rising by over 6% to over £12 an hour from April.

And the Chancellor promised to increase the tax thresholds at point at which you start to pay tax or pay tax at a higher rate from April 2028.

However, the Chancellor also said that inheritance tax threshold, so the amount that you can pass on without inheritance tax being paid, will be frozen until 2030.

And pensions will no longer be exempt from inheritance tax from April 2027.

Now, for many people this won't be an issue, but if you have a pension and have other assets such as your home it could mean that inheritance tax will have to be paid.

Now, inheritance tax won't be paid on pensions that are passed on to a husband, wife, or civil partner.

Now, the Chancellor also confirmed that the State Pension triple lock would stay in place for the rest of parliament. The triple lock means that the State Pension rises by the highest of 2.5% inflation is measured by CPI or earnings growth.

It means that the new State Pension will rise by 4.1% from April to £230 a week or just under £12,000 a year. But as our research shows almost half of people entitled to the new State Pension, so those that have reached State Pension age from April 2016, don't get the full amount so they will get far less.

Now, the Chancellor also confirmed that Pension Credit, which is a benefit for pensioners on a low income will also rise by 4.1%. And that benefit entitles you to the Winter Fuel Payment.

Now, there's also an increase in the amount carers, who are on a benefit call Carers Allowance, can earn and still keep the benefit. Currently they can earn up to £151 a week and after that they lose Carers Allowance, but from next April that'll rise to £196 a week.

Now, it is worth saying that not all of your income is taken into account for Carers Allowance, so you can deduct tax and National Insurance you've paid, certain expenses and 50% of any contributions you make to a personal or workplace pension.

So, if for example you pay £100 a month into your workplace pension you'd be able to deduct £50 of that a month.