April 6 marks the start of a new tax year in the UK and Brits are being told to brush up on their knowledge of financial changes coming into effect in 2021.

Following the Budget announced last month by Chancellor Rishi Sunak, there are some important changes on the way.

This is everything you need to know.

Housing Benefit

From 6 April, housing benefit is increasing to £59.20 from £58.90 for under 25s, and to £74.70 from £74.35 for 25s and over.

For those who are eligible to claim main phase Employment and Support Allowance, this will increase to £74.70 from £74.35

Tax Allowances

From 6 April, the amount that you can earn before you have to pay income tax, also known as your personal allowance, is increasing to £12,570.

The Government says: “As announced at Budget 2021, the Government will maintain the Personal Allowance at £12,570 and higher rate threshold at £50,270 for 2022 to 2023, 2023 to 2024, 2024 to 2025 and 2025 to 2026.

“The additional rate threshold is fixed at £150,000.”

The income limit for Personal Allowance will remain at £100,000 for the 2021/2022 tax year, and the income limit for married couple’s allowance will rise to £30,400 from £30,200.

Working Tax Credit and Child Tax Credit

From 6 April, both Working Tax Credit and Child Tax Credit annual allowance rates will increase for the 2021/2022 tax year.

Statutory Sick Pay

Statutory Sick Pay (SSP) is also changing from 6 April. Previously, the weekly rate was £95.85 before 6 April, and now it is £96.35.

To qualify for for SSP you must:

  • Be classed as an employee and have done some work for your employer
  • Earn an average of at least £120 per week
  • Have been ill or self isolating for at least four days in a row (including non-working days)

How many days you can get SSP for depends on why you’re off of work.

Pension Credit and State Pensions

Beginning on 6 April, the new tax year will mark an increase in benefit rates for both the state pension and Universal Credit.

Pension Credit payments will increase from £173.75 to £177.10. Pension payments are expected to increase by 2.5 per cent, which means that those over the age of 66 on the full, new State Pension will receive £179.60 per week, which is an increase of £4.40.

For those on the basic state pension, category A or B, currently receiving £134.25 per week, they will be paid £137.65, which is a benefit increase of £3.40.

Maternity Pay

The rate of statutory maternity pay is expected to rise from April 2021. The current weekly rate of statutory maternity pay is £151.20, or 90 per cent of the employee’s average weekly earnings, if this figure is less than the statutory rate.

The rate of pay is expected to increase to £151.97.

Universal Credit

During the Spring Budget, Chancellor Rishi Sunak announced that the £20 a week Universal Credit payment uplift would be extended for a further six months, and that instead of weekly instalments, eligible claimants receiving Tax Credits would instead be issued a one off payment of £500.

Child Benefit

From 12 April, Child Benefit will increase to £21.15 per week for the first child, and then £14 per week for any subsequent children. This is an increase of 10p and 5p respectively.

Personal Independence Payments

Personal Independence Payments (PIP) will also rise to £89.60, from £89.15, for enhanced claimants and to £60, from £59.70, for standard claimants.

The PIP mobility component is also set to rise to £62.55, from £62.25, for enhanced, and to £23.70, from £23.60, for standard payments.