Martin Lewis’ MoneySavingExpert (MSE) has issued a warning to UK households about five things that were missing from Labour’s budget.

Chancellor Rachel Reeves presented the Autumn Budget in the House of Commons this week, announcing £40 billion a year in extra taxes.

Tax rises will be used to put money into the NHS, schools, transport and housing, but a £25.7bn increase in national insurance contributions paid by employers is likely to reduce wages and cause job losses, despite the party’s promise to protect “working people.”

Other major changes included a change to inheritance tax rules, which will see inherited pensions subject to inheritance tax from April 2027, plus an increase in capital gains tax to raise £ 2.5 billion for public spending.

But while the budget covered many important issues, Martin Lewis’ MSE highlighted five key points that were not addressed and will impact many households.

ISA lifetime withdrawal penalty

The Labor Party has not announced plans to cancel the Lifetime ISA (LISA) scheme for first-time buyers. LISAs are designed to help people aged 18 to 39 buy their first home, with savers receiving a 25 per cent government boost when they use the funds to buy a qualifying first property.

The scheme allows people to save up to £4,000 a year for their first home, but those who buy a property above the £450,000 maximum covered by the scheme, or who use their saved money for anything other than a home , like retirement, will face a 25 percent fine.

Lewis had asked Labor to reduce the “unfair” cancellation penalty from 25 per cent to 20 per cent ahead of the budget, but the request has not been heeded.

Speaking on his podcast ahead of Wednesday’s Budget, Lewis said: “Many people, especially in London and the South East, and other urban metropolitan areas, have been taken aback by rising house prices.

“So they saved up, as the government told them, to buy their first property, but now their property is over £450,000. To get the money, even to buy prime property, which is what this product is for, they face a penalty, a substantial penalty.

“There is a question of justice here. Many of our young people who have done what the state asked them to do by saving for a property for the first time in a Lifetime ISA are being fined by the state for accessing the money to do what the state wanted them to do. “That seems unfair to me.”

According to MSE, an estimated £1.8 million in fines was paid in the 2023/24 financial year for withdrawing money from LISAs.

Tax-free childcare

Martin Lewis’ MSE called on the government, ahead of the budget, to rename its “Tax-Free Childcare” scheme to help the 800,000 families currently missing out.

The scheme offers up to £2,000 a year per child to cover childcare costs, including nurseries, nannies and some holiday camps. Around 1.3 million families have the right to claim it, but around 800,000 do not currently do so.

Speaking on his website, Lewis said: “Tax-Free Childcare has a scary name, DO NOT let it confuse you. Calling the plan Tax-Free Child Care was a political spin to ensure the government got credit for the plan.

“Unfortunately, the name is hugely misleading and is probably partly responsible for the plan having much less acceptance than it should. It is not tax in any way and is not tied to the tax rate you pay.

“A better name would be ‘Childcare Top-up for Working Families’ because it’s actually a discounted childcare savings plan where you save and then pay for childcare with a 25% top-up.”

Winter fuel payment

Martin Lewis’ MSE had urged Labor to make the eligibility criteria for the £300 winter fuel payment less restrictive in the budget, but the government also rejected this.

The Labor Party recently changed the criteria for the payment to be a means-tested benefit, meaning pensioners must claim Pension Credit or certain other benefits to qualify for it. This means that about 10 million people who used to be eligible will now miss out.

Lewis had urged the government to extend it to a wider group of people after claiming the current criteria were “too narrow”.

‘Mortgage prisoners’

Lewis had asked Reeves to address the difficulties faced by the so-called “mortgage prisoners”, but again this request was ignored.

Mortgage The prisoners are homeowners who normally made a mortgage before 2008, when lending standards were more relaxed. Now, Lewis says these homeowners are stuck in costly mortgage offers of up to 9% and cannot switch to cheaper ones because they do not pass the current strict affordability tests.

WASPI Compensation

Martin Lewis’s MSE also points out that the budget does not mention any reparations for WASPI (Women Against State pension Inequality) women, who say they have been treated unfairly when State pension age increased from 60 to 65 years.