How families could win and lose from the Budget

Many families across Britain will be nervously watching the Chancellor's Budget speech, eager to see how it will impact on them.

I will be with the Girling family - and others as the budget details emerge. George Osborne says he has little room for manoeuvre in his finances at the moment. I'm sure he realises that families across Britain have just as little scope for manoeuvre in their over-stretched budgets.

The Girlings like millions across Britain, have struggled with the rising energy, fuel and food prices Credit: ITV News

The Girlings like millions across Britain, have struggled with the rising price of energy, fuel and food. The official inflation figure is falling, but for households like this on a pay freeze things don't seem any brighter. They use a lot of energy washing nappies, and food allergies among the children mean their eating bills are higher than most. What they are looking for is a truly family friendly budget.

Jonathan and Hannah have four children - with family earnings not far above the national average for a two-income home (around £40,000).

Here are just a couple of ways they could win - and lose from the budget.

How could the family lose out?

The Girlings have found running their car a tough slog. Both of the couple work and need transport. The demands of a growing family mean they need to get around and can't always use public transport. Fuel duty is set to rise by 3p in August - something they would find extremely hard to deal with. They want George Osborne to cancel the rise.

There have also been reports that the Treasury is considering a capping of child benefit, restricting it to the first three children. As the Girlings say "we didn't plan to have twins!". They would find this a big blow because they spend around £6,000 a year on child care.

How could the family win?

It is likely that the income tax threshold will be raised to £8,105 - meaning all income below this level is not liable. This mean two and a half million low wage earners will not have to pay any income tax at all – and other lower earners will get a tax cut. The Girlings would certainly get some benefit from this move.

There may also be an extension to the childcare voucher scheme - which allows working parents like the Girlings to pay for childcare out of a pre-taxed income. This may be extended to the self-employed, which would help because Jonathan is a freelance music composer.

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