Will parents consider home income plans following budget?

Home income plans can provide a solid source of alternative funding as more and more people find themselves in a financially tight situation.

The emergency Budget has had a mixed reaction from parents as the government announced new measures that would significantly affect young families with children. Parents should be open to equity release and other forms of supplemental cash supply.

Jasmine Birtles, founder of Moneymagpie.com, welcomed the initiative taken by the government to help out families with lower incomes by decreasing the tax credit threshold to £40,000. She said this would not affect families in a negative way as the lowered limit still provided for a substantial amount of money.

She added: "I do think that on the whole it is very much offset by the VAT hike and also the freezing of child benefits, which in effect will mean that the effectiveness of child benefits will actually go down. How much depends on inflation, but it will certainly reduce their value."

Chancellor George Osborne announced during Tuesday's (June 22nd) Budget that child benefits would be frozen for the next three years.

Ashall Glover Financial Services home income plan advisers

Posted by Louise Tilston