easy news budget special 2015 final

8/20/2019 Easy News Budget Special 2015 FINAL

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Special EditionJuly 2015


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Easy News Budget 2015

He said that the deficit is going down andthat there will be no deficit by 2019 – 20.A deficit is like a debt. It is when youspend more money than you have.

He said that the economy is growing.The economy is how much money ourcountry and Government has.

He gave a speech in Parliament about the waythe Government wants to spend less money infuture years. His speech is called the Budgetspeech.

George Osborne is the UK’s Chancellor.The Chancellor is in charge of how theGovernment spends its money.

P h o t o b y P e t e r M a c d i a r m i d / G e

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George Osborne said that the Governmentwill cut £12 billion that is spent on benefits

by 2020.

The Chancellor also said in future somepeople who get the Employment SupportAllowance benefit will get less money.This will not include people who arealready getting the Employment Support

Allowance benefit.

He said that the amount of money thatpeople can earn before they pay tax willget higher.

From April 2016, people can earn up to£11,000 before they have to pay any tax.

George Osborne talked about work. He said

that there will be a new ‘National LivingWage’. This means that from April 2016,employers will have to pay all their workerswho are over 25 years old at least £7.20 anhour.

This will go up to £9 an hour by 2020.

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People will also only be able to claim ChildTax and Universal Credits for their first two

children, after April 2017.

The amount of money that someone can earnand still receive tax credits will go down from£6,420 to £3,850.

He also said that some benefits would notgo up for the next 4 years. These include taxcredits and local housing allowance.

Pension, disability and benefits paid towomen having a baby can still go up overthese years.

He said the Government would save some of

this money by lowering the amount of moneyfamilies can get in benefits. This is called abenefit cap. Families living in London will have acap of £23,000 a year. Families living in the restof Britain will have a cap of £20,000. Not allbenefits will be included in this cap.


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In the past, people from Britain who live in othercountries, known as “non-doms”, have paid lesstax. From April 2017, they will have to pay thesame level of tax as other UK citizens. This will

include anyone who has lived in the UK for 15or more of the past 20 years.

People who own a house which costs up to£1 million will be able to give it to their childrenor grandchildren when they die without payingtax. This will begin in April 2017.

Many people living in social housing will payless in rent. Social housing means that the

Government gives people with certain needs, orwho don’t earn a lot of money, a place to live.

Their rent will go down 1% each year for thenext 4 years.

People who earn more money will be asked to paymore rent. People will be asked to pay more if theyearn more than £30,000 across the country or£40,000 if they live in London.

In future, people aged 18-21 who receiveUniversal Credit will only receive Housing Benefitif they are in training or on a work placement.

Universal Credit is new. It brings together mostof the other benefits into one new benefit.

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The Chancellor promised that the Governmentwill spend 2% of the money that it gets throughtaxes on defence. Defence means how the

Government protects all the people in the UKwith the help of the armed forces.

The cost of petrol will stay the same for thenext year. A new tax will be introduced inApril 2017 for people who buy brand newcars. People whose cars are environmentallyfriendly will pay less.

University students from poorer families willnot get grants to help pay for the cost of theirstudies any more.

A grant is money that the Government gives tosome students to help them pay for their studies.

Instead, students will get a loan which they willhave to pay back when they earn more than£21,000 a year.

George Osborne also said that an extra £8 billionwill be spent on the NHS by 2020. This is on topof the £2 billion the Government has alreadyagreed to spend.

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The Government is giving councils in Manchester

more powers to make decisions about fire services,planning and children’s services.

This is because Manchester will have a directlyelected Mayor. People living in Manchester willvote for the Mayor in 2017.

The Government also wants to give more powersin the future to councils in Sheffield, Liverpool andWest Yorkshire.

Harriet Harman is the acting leader of theLabour Party. She said that families will suffer

because of the cuts that the Chancellor hasmade in his Budget.

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She said that even though the Governmentis bringing in the National Living Wage, manyfamilies will have less money than they didbefore because of the cuts to tax credits.


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Translated into Easy Readby UR Consultants, mailedby UR Sorted and producedby United Response.Registered charity no.265249, a company limitedby guarantee, registered inEngland no. 1133776. Withthanks to Kaliya Franklinand Photosymbols. Care has

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You can find out more aboutwhat MPs do atwww.everyvotecounts.org.uk

You can find out who your MPis and how to contact them atwww.writetothem.com

If you are happy or worried aboutsomething in the Budget, youcould tell your local Member ofParliament (MP).

Front cover: Chancellor George Osborne poses with traditional red briefcase at Downing Street on July 8, 2015 before unveiling the summer budget. © Ian Davidson / New Zulu / PA Images

easy news budget special 2015 final

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