Chancellor Rachel Reeves has released the Autumn 2024 Budget, which is the first since Labour’s landslide victory in July. But how will it impact students?
Don’t panic. Nouse has compiled a list of all the changes that will directly affect you.
National Minimum Wage will increase.
The Chancellor announced that the National Minimum Wage for 18-20-year-olds will initially be increasing by 16.3%, raising it to £10 an hour. The government aims to move towards a single adult rate, phased in over time.
Price of fuel will not increase.
The Chancellor explicitly stated “there will be no higher taxes at the petrol pumps next year”. The government will freeze fuel duty next year and the existing 5p cut will be maintained for another year too.
Tobacco and vapes will be more expensive.
Reeves was clear that the cost of vaping and smoking will rise.
Firstly, the Tobacco Duty escalator will be renewed. This means that the duty rate, and prices, on all tobacco products will continue to rise.
Secondly, a new tax on vapes will be introduced from October 2026. Vapes will be taxed £2.20 per 10ml of e-cigarette liquid.
Pints will be cheaper.
Taxes on alcohol will continue to rise in line with inflation. However, the Chancellor announced that draught duty will be cut by 1.7%. This means a pint in a pub will now be a penny cheaper.
More funding for local governments.
Next year, there will be a funding increase for local governments. According to Reeves, mayors will be granted “meaningful control” over funding for their local areas.
Increased funding for train services.
The Chancellor confirmed that the Transpennine route will be upgraded. There will be significant investment into the railway connecting York and Manchester via Leeds and Huddersfield.
Reeves promised that services between Church Fenton and York will be electrified by 2026. If successful, this will significantly improve train services for students.
Bus fares will rise.
The cap on bus fares will continue until December 2025. However, fares will now be capped at £3 rather than £2.
Student landlords could be in trouble.
The government are increasing the additional stamp duty on second homes from 3% to 5% of the purchase price. This makes it more expensive for Landlords to buy additional properties to add to their rental portfolio.
It is anticipated that this could lead to increased rental costs for students as Landlords attempt to recoup this extra cost.
