The Spring Budget was announced on 15 March 2023. In their announcement the government maintained that the UK was still facing significant challenges. High inflation, low growth and debt are all slowing down the economy; and while energy costs are falling, the cost-of-living crisis hasn't gone anywhere just yet.

A big part of today’s announcements were focused on getting those people who have left their jobs to return to the workforce. Here's our roundup of the key points individuals and households need to be aware of...

Pensions

The tax-free annual pension contributions cap will be increasing from £40,000 to £60,000. This increase aims to reduce the fears associated with tax hits incurred by people retiring in their 50s.

The Lifetime Allowance charge is set to be abolished from April 2024.

The cap on the amount working people can save in their pensions is also set to be abolished. Currently, workers' savings are capped at £1.07m over their lifetime before they have to pay extra tax.

Childcare

Currently, working parents can claim for 30 hours of free childcare per week for children aged three and four years old.

From next year, this will be extended – first to cover 15 hours a week for parents of two-year olds from April 2024 and then for parents of nine-month olds from September 2024. Finally, from September 2025 all those aged over nine months will be eligible for the full 30 hours of free childcare.

‘Returnerships’: new training for over 50s who are out of work

In an effort to get some of the people who’ve left the workforce in recent years to return to the workplace, the government plan to introduce a new kind of apprenticeship.

While no official timeline for when this training will be rolled out was announced, it could be good news for anyone who’s been looking to make a later-in-life career change.

Energy

Energy prices have been falling but still remain high.

The Energy Price Guarantee (EPG) helps households by capping the cost of typical annual energy bills at £2,500.

It had been previously announced that this support would end in April, so this three-month extension to the EPG will be welcome news to anyone who was worried about this support coming to an end.