5 key takeaways from the Budget

Chancellor Rachel Reeves has announced her Autumn Budget, introducing changes that will shape household finances across the UK. It’s a mixed picture for everyday families: some measures aim to ease pressure and boost incomes, while others could mean higher costs in the years ahead.

Commenting on the Budget, thinkmoney’s consumer expert Vix Leyton said: “It’s easy to get swept up in the noise around the Autumn Budget but headlines are designed to grab your attention, not necessarily to show you the whole picture. The reality is most changes don’t filter through to your everyday finances overnight.

“Before you panic or rush into decisions, take a breath and remember that most policies take months, if not longer, to come into effect and some even get rolled back, so there will be a window to understand what’s changing and decide your next move calmly.”

Here are some of the main takeaways from the Budget that might impact you.

Two-child benefit cap scrapped

Right now, parents can only claim Universal Credit or Child Tax Credit for their first two children. From April 2026, that rule will go. Families will be able to claim for every child again.

If you have three or more kids, you could get hundreds of pounds more support each month. This change is expected to help thousands of families and reduce child poverty.

Help to Save scheme extended

The Help to Save scheme gives working people on Universal Credit a 50% bonus on savings, boosting their cash by up to £1,200 over four years. It was due to end in 2027, but scheme has now been made permanent.

As of 2028, eligibility will expand too, with an extra 1.5 million parents and carers on Universal Credit qualifying. Savers opting in will continue to receive £0.50 from the government for every pound saved.

Minimum wage going up

The government announced the decision to increase the minimum wage ahead of the Budget. This is good news for younger people in particular. As of April 2026:

• 21 and over: £12.71 an hour (up 4.1%)
• 18–20: £10.85 an hour (up 8.5%)
• 16–17: £8 an hour (up 6%)

If you work full-time and you’re 21 or older, that’s about £900 more a year in your pocket.

Rail fares frozen for the first time in 30 years

Train tickets usually go up every year. But for the first time in three decades, the government is freezing regulated rail fares across England.

The move impacts commuters in particular as season tickets and peak and off-peak returns will be affected. It’s expected commuters on some routes will save more than £300 per year as result.

Travel costs eat up a big chunk of household budgets. This freeze is designed to ease pressure and make commuting more affordable.

Tax thresholds frozen again

If you work and earn less than £12,570, you don’t pay any tax as that is your personal allowance. If you make over this amount, you start paying tax. The exact amount you pay depends on how much you earn. There are different tax thresholds that decide how much tax you need to pay.

These tax thresholds, including the personal allowance of £12,570, will stay the same until 2031. That’s three years longer than planned.

As wages rise, more people will pay tax or move into higher tax bands. Even if tax rates don’t change, you could end up paying more over time as you start earning more.

Other key changes announced during the Budget

Not everything announced today is likely to impact you directly. However, we’ve rounded up a few other key changes that you’re likely to see in the news over the next few weeks:

• Limit on cash ISA allowance – from April 2027, most savers can only put £12,000 in a cash ISA, whereas previously they could put in the full £20,000 ISA allowance into cash products
• Extra taxes on electric cars – from April 2028, electric car drivers will pay 3p per mile and plug-in hybrids will cost 1.5p per mile on top of other road taxes
• Salary sacrifice cap for pensions – from April 2029, workers will only be able to sacrifice up to £2,000 of their salary into their pension without paying NI; this change mainly affects higher earners who use salary sacrifice to boost their pensions