Autumn Budget 2026: 6 confirmed changes that could save you money

The Autumn Budget 2026 is almost here, but you don't have to wait for the Chancellor's speech to find out what's changing. From cheaper bus fares and new support for parents to help for first-time buyers, six announcements have already given us a glimpse of what's coming. Here's what they could mean for your money.

Chancellor John Healey will deliver his first Autumn Budget on Wednesday 28 October, and after weeks of rumours about tax rises, benefits and government spending, households are understandably keen to know what might happen to their finances.

Since becoming Prime Minister in July, Andy Burnham has announced several cost of living measures aimed at giving households more breathing space with their bills. Now, with the Budget just around the corner, attention is turning to how those promises will be funded and what other support could be coming.

This year's Autumn Budget is the earliest since 2021, when it was held on 27 October. Although the Chancellor's speech is usually when we find out about major changes to tax and spending, this year the Government has already confirmed several measures, some of which are already in place.

Here are six changes announced ahead of the Autumn Budget 2026, including who could benefit, how much money could be saved and when the new rules will apply.

1. Mileage allowance increase: how much can you claim in 2026?

If you use your own car for work, you could already be benefiting from an increase in the tax-free mileage allowance.

The approved mileage rate increased from 45p to 55p per mile for the first 10,000 business miles from April 2026. The Government has now announced plans to make the higher rate permanent.

This rate determines how much employers can reimburse employees tax-free for eligible business journeys in their own vehicles. It also affects the mileage expenses that eligible self-employed people can claim when calculating their taxable profits.

According to the Government, around three million workers could save between £120 and £300 a year thanks to the change.

If you regularly drive for work, it's worth checking your employer's mileage policy and keeping records of your business journeys. If your employer pays less than the approved rate, you may also be able to claim tax relief on the difference.

2. Parental pay changes: who will qualify for the new support?

The Government has confirmed plans to expand parental pay, with more than 150,000 additional parents expected to benefit each year.

The changes are particularly significant for self-employed fathers and partners, who have previously missed out on statutory paternity pay because they don't meet the usual employment requirements.

Under the proposals, eligible parents could receive up to two weeks of financial support when they welcome a new baby, helping to ease the pressure of taking time away from work.

Full eligibility rules, payment details and the date the new support will become available are still to be confirmed.

For parents-to-be, it's worth keeping an eye on the announcement, particularly if you're self-employed or have previously been unable to claim parental pay.

3. Carer's Allowance changes: will the earnings limit be scrapped?

For unpaid carers trying to balance work with looking after a loved one, one of the biggest problems with Carer's Allowance has long been its strict earnings limit.

Currently, carers can earn no more than £204 a week after tax, National Insurance and certain allowable expenses. Go just 1p above that threshold and you could lose your entire Carer's Allowance payment, worth £86.45 a week.

It's a rule campaigners have criticised for years, particularly because earning a little extra money can leave someone significantly worse off.

The Government has now announced plans to replace this cliff-edge with a gradual reduction in payments, known as a taper.

Under the proposed system, carers would lose £1 of support for every £1 earned above the threshold, rather than losing their entire payment at once.

This could make it easier for unpaid carers to take on additional working hours without worrying about suddenly losing all their support.

However, the change won't happen overnight. The new system will need to be developed and introduced, so carers should continue following the existing earnings rules until the Government confirms otherwise.

4. Cheaper bus fares and railcards: who can save on travel?

Travel costs can take a sizeable chunk out of a household budget, particularly for people who rely on public transport to get to work, school or college.

Two changes announced ahead of the Budget could help make those everyday journeys cheaper.

£2 bus fare cap from January 2027

From 1 January 2027, single bus fares on participating services across England outside London will be capped at £2, down from the current £3 national cap.

For someone regularly paying £3 each way to commute, that could mean saving £2 a day, or around £10 over a five-day working week.

16-17 Saver railcard extended

Changes to the 16-17 Saver railcard came into effect on 17 August 2026, allowing teenagers to use the card for a full 12 months from the date of purchase, even if they turn 18 during that time.

The railcard offers 50% off most eligible train fares. Under the new rules, someone buying one the day before their 18th birthday could continue using it until almost their 19th birthday.

The Department for Transport estimates that affected railcard holders could save an average of £175 thanks to the extension.

If you're travelling regularly, it's worth checking whether you're eligible for discounted fares, especially if you're a student, apprentice or young worker.

5. Student loan interest rates: what does the new 6% cap mean?

Student loan repayments and interest rates have become a growing concern for graduates, particularly those watching their outstanding balances increase despite making regular repayments.

The Government has introduced a temporary cap on interest rates for Plan 2 and Plan 3 student loans, limiting the maximum interest charged to 6% between 1 September 2026 and 31 August 2027.

The change is designed to protect borrowers from sharp increases in interest linked to inflation.

However, it's important to understand that this doesn't mean everyone will pay 6% interest, or that their monthly student loan repayments will automatically decrease.

The cap limits how quickly affected loan balances can grow when the normal interest calculation would produce a higher rate. Repayments will still depend on earnings and the rules of the borrower's repayment plan.

The Government has also introduced clearer information requirements for prospective students in England, helping applicants understand how student loans work, how repayment terms can change and how their future earnings may affect the amount they repay.

6. First-time buyer scheme: could you buy a home with a 2.5% deposit?

Saving enough for a house deposit is one of the biggest barriers facing first-time buyers, and the Government has announced plans for a new scheme designed to make getting onto the property ladder more affordable.

The proposed Your First Home scheme could allow eligible buyers in England to purchase a new-build property with a deposit of just 2.5%.

Under the plans, buyers would also receive a government-backed equity loan worth 20% of the property's value, with an initial interest-free period.

For example, a 2.5% deposit on a £200,000 home would be £5,000, compared with £10,000 for a 5% deposit. That's a £5,000 difference for someone trying to build up their savings.

However, a smaller deposit doesn't necessarily mean a cheaper home overall. Buyers will still need to consider their mortgage repayments, the terms of the equity loan and any additional costs of homeownership.

The scheme is expected to include household income limits and local property price caps to make sure support reaches those who need it most.

Further details about eligibility, when applications will open and how the scheme will work are expected in the Budget.

What should you do before the Autumn Budget 2026?

The Budget is always a good opportunity to give your finances a once-over, but you don't need to wait for the Chancellor's speech to start making the most of support that's already available.

Whether it's checking that you're claiming the right work expenses, making sure you're using the cheapest available travel options or finding out what help you could qualify for, small changes can make a real difference over the course of a year.

It's also worth remembering that not every Budget announcement takes effect immediately. Some of these measures are already in place, while others could take months or even years to introduce.

With winter approaching and household bills still putting pressure on people's finances, understanding what's available now, and what's still to come, could help you plan ahead and keep more money in your pocket.