article: Yet, at its heart is a plan to cut £12bn from the welfare bill - a move that will affect the lives of millions of people. To Mr Osborne's supporters, this Budget is a seminal moment in a shift from reliance on the state to rewarding hard work, particularly with a new pay guarantee. To his critics, it is a hammer blow to the financial lives of struggling families across the country. But what - in practical terms - does it mean for you? As predicted, there will be big changes to the system of tax credits. Only the lowest-income families will be able to claim tax credits. Together with changes to entitlement to Universal Credit, this will cut £2.9bn from the welfare bill in the next financial year and £3.4bn a year by 2020-21. For example, the income threshold for tax credits is to be reduced from £6,420 to £3,850. Larger families, particularly, will be hit by tax credit changes if they have children from April 2017. Claimants will see child tax credits and Universal Credit limited to the first two children. Here is some context: at present about 870,000 families claiming tax credits have three or more children - about one in five families receiving tax credit. However, it will only be those larger families making a claim, or having more children, from April 2017 that will be affected. In addition, many working age benefits will be frozen for four years, such as tax credits and local housing allowance, but excluding maternity pay and disability benefits. This is a cut to the welfare bill of £4bn a year by 2020-21. The benefits cap - the maximum amount a household can receive in benefits - will be reduced. For those living outside of London it will drop to £20,000. For those living in London, where housing costs are higher, the cap will be £23,000. Landlords are going to take a big hit, but not immediately. Tax relief on mortgage interest payments on residential property will be restricted to the basic rate of tax. This will be phased in over four years from April 2017. This means that landlords, who get a tax break by using mortgage interest to reduce their taxable profits, will have less opportunity to do so. Landlords in London, where rents and property prices are highest, are likely to be hit the hardest. The share prices of house builders have taken an immediate hit, partly because a number of homes may be put onto the market by reluctant landlords following the chancellor's announcement. In other housing announcements, rents in the social housing sector will be reduced by 1% a year for the next four years. However, housing association tenants in England who earn more than £30,000 per household - or £40,000 in London - will have to pay up to the market rent. Housing benefit will not be paid automatically to 18 to 21-year-olds. Insuring a home will get more expensive, by an average of £9.48 a year, as a result of changes to insurance premium tax. July
summary: This Budget is "bold in building the aspirations of working people", according to Chancellor George Osborne.