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What the Conservative win means for your personal finances

Joanna Faith
Written By:
Joanna Faith

Boris Johnson and the Conservative party secured a landslide victory in last week’s General Election. We look at what the new government could mean for your finances.

Big changes could be announced in February

The Tories have confirmed there will be a Budget announcement in February which will set out the party’s spending plans including potential changes to tax allowances and reliefs.

Tax cut for 31 million workers

The Conservative manifesto pledged to raise the threshold at which you pay National Insurance from the current £8,632 to £9,500 in 2020-21. This means that anyone earning more than £8,632 will benefit to the tune of around £100 a year.

The move would benefit 31 million workers, the Tories said.

They also said they would not raise National Insurance, income tax or VAT rates.

Benefits for older people to stay

The Tories have promised to keep the winter fuel payment and older person’s bus passes. One big question mark is what will happen to TV licences. In the final days of the campaign, Johnson said he was considering scrapping TV licences altogether, threatening the publicly funded status of the BBC. He also said the BBC should fund licences for the over-75s.

Help with childcare costs

The Conservatives pledged to establish a new £1bn fund to help create more high quality, affordable childcare, including before and after school and during the school holidays.

Pension triple-lock guaranteed

The controversial triple-lock is a mechanism which guarantees that the state pension will rise by the higher of inflation, average earnings or 2.5%. Some commentators suggest it should be abolished as it is not financially sustainable. However, the Tories have pledged to keep it meaning the state pension is set to rise by 3.9 per cent in April 2020.

Energy cap to remain

The Tory manifesto pledges to maintain the energy price cap, which is the maximum price suppliers can charge a typical dual fuel customer on a standard variable tariff.

Potential boost for first-time buyers

Boris Johnson suggested the Tories would launch ‘lifetime’ fixed-term mortgages for first-time buyers, which would be funded by big pension funds. These would be aimed at renters with a 5% deposit. But there was little detail about how they would work.