What does the 2026 Autumn Budget mean for you?

Key policies that may affect you:

National Minimum Wage increase

From April 2027, The National Living Wage (NLW) will rise by 3.9%, increasing from £12.71 to £13.21 per hour.

The National Minimum Wage (NMW) for 18 to 20-year-olds will increase from £10.85 to £11.27.

The NMW for 16 to 17-year-olds and apprentices will increase from £8.00 to £8.31. The accomodation offset will rise to £11.53 per day.

Help with energy bills

This winter, households in England in council tax bands A-D will receive a £100 Household Energy Payment to help with bills. Payments are expected to be paid directly into bank accounts from January 2027.

Visit the GOV.UK site to check what your council tax band is.

Money has been made available to the devolved governments in Scotland, Wales and Northern Ireland to match this £100 support.

The Government also extended the VAT cut on electricity bills in Britain until July 2027. This means around £50 off the Energy Price Cap in April 2027. Households in Northern Ireland will receive similar support. 

Additionally, the Government committed to removing the standing charges on gas bills by the end of 2027. This is a fixed fee added on top of all household gas bills, no matter how much gas you use. The average household pays around £108 per year in standing charges.

Introduction of Pension Tax Allowance

From April 2027, the Government will introduce a new Pension Tax Allowance to reduce the income tax paid by some people over State Pension age.

It wil reduce the amount of income tax eligible pensioners have to pay by up to £94 a year from 2027/28. 

The amount people recieve will depend on their total income. You will not need to apply for it, as HMRC will calculate it automatically.

Changes to Carer's Allowance

The Government confirmed that it will remove the Carer’s Allowance 'cliff edge'. This is when a carer would lose their benefit entirely, if their weekly earnings went over the threshold slightly.

From 2030, a taper will be added to the earnings threshold. This means when a carer's earnings goes over the threshold, their Carer's Allowance payment will only be reduced by £1 for each £1 above the threshold.

Visit our Carer's Allowance guide for more information about eligibility and earnings.

Extension of Parental Pay

From April 2029, parental pay eligibility will be extended to include self-employed fathers, partners and adopters. This will provide eligible parents in Britain with two weeks of support, up to £194 a week.