What does the 2025 Autumn Budget mean for you?
The Chancellor of the Exchequer, Rachel Reeves, has revealed her Autumn Budget. What does it mean for you?
- Published
- 26/11/2025
Key policies that may affect you:
End of the Two-Child Limit
From April 2026: The two-child limit in Universal Credit will be removed. This means families with three or more children will receive an extra child element payment for each additional child.
State Pension increase
From April 2026: The New State Pension and Basic State Pension will rise by 4.8%, offering increased weekly amounts for pensioners.
For information on the support available to people above State Pension age, visit our Pension and Retirement area.
National Minimum Wage increase
From April 2026: The National Living Wage will rise by 4.1%, increasing from £12.21 to £12.71 per hour.
The National Minimum Wage for 18 to 20-year-olds will increase by 8.5% from £10 to £10.85 per hour.
For 16 to 17-year-olds and apprentices, it will increase by 6% from £7.55 to £8.00 per hour.
Other benefits increases
From April 2026: the Universal Credit standard allowance will increase by 6%, and other working-age benefits will increase by 3.8%.
The maximum amount available for Universal Credit Childcare Costs will increase by £736.06 for each additional child above the two child cap.
Energy Bills
From April 2026: The average household energy bill will fall by around £150.
Transport costs
From March 2026: Rail fares in England will be frozen for one year until March 2027.
Motability Scheme
From July 2026: Extra taxes will be added to the cost of leasing a car through the Motability scheme. Luxury vehicles will no longer be available through the scheme.
Prescription charges
From April 2026: NHS prescription charges in England will remain frozen at £9.90 for a single prescription.
Youth Guarantee
All eligible 18 to 21-year-olds who have been on Universal Credit and looking for work for 18 months, will be guaranteed a six-month paid work placement.
Carer’s Allowance overpayments
From 2026: The Department for Work and Pensions (DWP) will cancel existing Carer’s Allowance Overpayments debts. They will also refund any money that carers have already repaid.
Health and Disability Assessments
The DWP will increase the number of Work Capability Assessments (WCA) carried out. People receiving Personal Independence Payment (PIP) will have their award review periods extended, and there will be more face-to-face assessments.
Language used by politicians and journalists needs to change
This Budget is about more than spending, it's about language and values.
Stigmatising language from politicians and media is driving shame that harms mental health, knocks confidence, and makes it harder to recover from setbacks. Most of us will use social security at some point, and over 70% agree that it shouldn't be shameful. Our social security system, like the NHS, is essential to our country's resilience. We urge MPs and journalists to consult our narrative guides to avoid stereotypes and help build a respectful, compassionate system.
Join our campaign to stop the stigma
A social security system that treats everyone with dignity is one that works.
Right now, surveillance, distrust, and control are eroding people's health and confidence, pushing them further from work. This government promised to slash child poverty and support more people into work. Today it has started delivering, but there's more to do. To stop the stigma and fix the system, we must maintain pressure on the government to ensure our social security system treats everyone with dignity and respect.
To help us stop the stigma and fix the system, sign our open letter to the Minister for Work and Pensions today – telling him why our social security system must treat everyone with dignity and respect.
Get support
We're in your corner. Use our free Turn2us Benefits Calculator, Grants Search, and Turn2us PIP Helper tools to check what benefits and grants you might claim.
If you’ve been struggling with the current situation and what the future might hold for you, here are some organisations you can reach out to.
Mind’s support line is a safe space for people to talk about their mental health. You can reach them Monday to Friday, from 9am to 6pm, at 0300 102 1234.
Samaritans offer a free listening service available 24/7. You can reach them at 116 123 or by emailing jo@samaritans.org.