What the 2026 Autumn Budget means for you.
📢 Budget Autumn 2026: Highlights
The latest Budget announcement brings major changes affecting energy bills, pensions, wages, taxes, benefits, driving costs, and more. Here’s what you need to know.
🔌 Energy Bills to Drop by £150
From April 2026, green levy costs will be removed from household energy bills. This could save the average household around £150 a year, with most of the reduction seen on electricity bills.
👵 State Pension Rising by 4.8%
From April 2026, new State Pension will go up to £241.30/week and old State Pension will rise to £184.90/week
💼 Minimum Wage Boost
From April 2026:
21+ years: £12.71/hour (up 4.1%)
18–20 years: £10.85/hour (up 8.5%)
16–17 & apprentices: £8/hour (up 6%)
👶 Universal Credit 2-Child Limit Scrapped
From April 2026, families on Universal Credit will receive support for all children, not just the first two. The Government expects this to lift 450,000 children out of poverty.
🚆 Rail Fare Freeze
Regulated rail fares in England are frozen until March 2027.
💊 Prescription Prices Frozen
Prescription charges will remain at £9.90 for 2026/27. Prepayment certificate prices are also frozen. The freeze will also apply to NHS wigs and fabric supports, such as surgical bras, and abdominal and spinal supports.
💷 Cash ISA Allowance Cut
From April 2027 under-65s can only save £12,000/year in a cash ISA (down from £20,000).
The overall £20,000 ISA limit stays, but the rest must go into investment ISAs like stocks and shares.
📈 Higher Taxes on Savings, Investments & Property Income
Dividend tax rates up by 2% from 2026. The ordinary rate will rise from 8.75% to 10.75%, and the upper rate from 33.75% to 35.75% from April 2026. The additional rate will remain unchanged at 39.35%.
For those who pay tax on savings interest, the basic rate will rise from 20% to 22%, the higher rate from 40% to 42%, and the additional rate from 45% to 47% from April 2027.
From 2027, property income will have its own higher tax rates, also 2%more than current income tax rates - the property basic rate will be 22%, the higher rate will be 42%, and the additional rate will be 47%.
🎓 Student Loans Repayments
Plan 2 student loan income threshold increases to £29,385 in 2026, then freezes until 2030, meaning repayments will gradually increase.
🧾 Income Tax & National Insurance Thresholds Frozen
Thresholds won’t rise until 2031.
🚗 Mileage Charge Introduced for Electric Vehicles
From April 2028 there will be a new mileage based charge on electric vehicles, in addition to the current Vehicle Excise Duty (VED) paid by all drivers.
Full Electric cars will pay 3p per mile and hybrid drivers will pay 1.5p per mile, both rates rising with inflation.
🏡 Increased Council Tax for High-Value Properties
From 2028, properties in England worth £2 million+ will pay an extra £2,500–£7,500 a year, on top of regular council tax.
💰 Help to Save Scheme Made Permanent
From 2028, the 50%-bonus savings scheme will continue and be opened to 1.5 million more low earners. The scheme encourages low income workers who can’t normally afford to save, to gain financial resilience by getting a 50% government bonus on savings after 4 years.
📉 Pension Salary Sacrifice Cap
From April 2029, NI relief on pension salary sacrifice will be limited to £2,000/year, mainly affecting higher earners.
📱 Mobile Mid-Contract Price Hikes Targeted
Following O2’s 40% rise, the Chancellor has asked Ofcom to review rules to protect customers from unexpected increases.
🏠 Lifetime ISA to Be Scrapped for New Savers
Only existing savers will keep current benefits. A new first-time buyer scheme is being considered for 2026
⛽ Fuel Duty Frozen
Fuel duty is staying at 52.95p per litre until September 2026.
🍺 Alcohol Duty Going Up
Tax on alcohol will increase by 3.66% from February 2026.
If you need advice, get in touch with us, and keep an eye out on our website and social media for upcoming outreach events. See www.cawb.org.uk/contact for more information.
