Autumn Budget 2026: What it means for your money, wages, benefits and bills

The Autumn Budget has arrived, bringing changes to everything from your wages and energy bills to how you save for your first home. And while the Chancellor has announced a fair few big numbers, what matters most is how much difference they'll make to the money you've actually got to work with.

Chancellor John Healey delivered his first Budget on 28 October 2026, confirming a £100 winter energy payment for millions of households, a minimum wage increase, new rules for first-time buyers and changes to savings, benefits and everyday costs.

Some measures will arrive in the coming months, while others won't take effect for several years. And, as ever with a Budget, a saving on paper doesn't necessarily mean the same amount of extra money arriving in your bank account.

We've picked out the announcements most relevant to your household finances, with the amounts, dates and important catches worth knowing about.

Autumn Budget 2026: What are the biggest changes?

Here's a quick rundown of the announcements affecting everyday finances:

• £100 energy payment: Up to 20 million households in council tax bands A to D in England will receive support from January 2027.

• Minimum wage rises: Workers aged 21 and over will receive at least £13.21 an hour from April 2027, a 50p increase.

• Electricity VAT relief extended: The temporary 0% VAT rate will continue until July 2027.

• Gas standing charges scrapped: The Government plans to remove them by the end of 2027 or as soon as possible afterwards.

• Lifetime ISA penalty reduced: The withdrawal charge falls from 25% to 20% for qualifying first-home purchases above £450,000.

• Cash ISA limit retained: Savers will continue to have a £20,000 annual cash ISA allowance.

• Side-hustle allowance increased: The Income Tax Trading Allowance will rise from £1,000 to £3,000 from April 2027.

• Carer's Allowance reform: A gradual reduction in payments will replace the current earnings cliff edge, although not until 2030–31.

• Fuel duty frozen: The existing 5p cut and duty freeze will continue until July 2027.

• More support for small businesses: Business rates relief will be expanded for qualifying shops, pubs, cafés and other hospitality businesses in England.

And here is what those changes actually mean in practice...

£100 energy payment confirmed: Who gets it and when?

One of the biggest announcements for household budgets is a new £100 Household Energy Payment to help with winter costs. Full details here.

The Government has confirmed that qualifying households in England living in council tax bands A, B, C and D will receive £100, with payments starting from January 2027.

Up to 20 million households are expected to benefit, and the money will be delivered through local councils using the council tax system.

Importantly, the payment isn't restricted to people receiving Universal Credit or other means-tested benefits. It's based primarily on council tax bands, although further administrative details still need to be published.

The Government has also allocated an additional £100 million to English local authorities to help households facing particularly severe energy costs, including some people living in higher council tax bands.

Separate funding will go to Scotland, Wales and Northern Ireland, where the devolved governments will decide how comparable support is provided.

Do you need to apply for the £100 energy payment?

The detailed application and payment arrangements haven't yet been confirmed.

You can check your property's council tax band using the free GOV.UK council tax band checker.

But be wary of unexpected texts or emails asking you to enter bank details to claim the money, particularly while councils are still preparing their payment systems.

For the full eligibility details, read our guide to the £100 winter energy payment.

Energy bills: Electricity VAT relief extended and gas standing charges to go

The £100 payment isn't the only energy announcement.

The Chancellor has extended the temporary removal of VAT from domestic electricity bills in Great Britain until 1 July 2027.

The Government estimates that the extension will reduce the annualised Ofgem energy price cap by around £50 in April 2027, compared with what it would otherwise have been.

That's an estimate of the effect on energy prices, not another £50 payment into everybody's bank account.

The Government has also asked Ofgem to remove gas standing charges from domestic energy bills in Great Britain by the end of 2027, or as soon as possible afterwards.

Standing charges are the fixed daily amounts you pay even when you use very little gas.

However, the costs currently recovered through standing charges won't disappear altogether. They'll move into the unit rates people pay for the gas they use.

That means households with lower gas consumption could save money, while people using more gas might see smaller savings or even pay more.

There's also a new strategy to tackle household energy debt, with further support expected for eligible households in 2027.

The important thing to remember is that these changes operate differently and won't all arrive at once. A bill reduction, a direct payment and a future change to how gas is priced aren't interchangeable.

Minimum wage 2027: How much extra will workers earn?

The National Living Wage will increase by 3.9% from 1 April 2027.

For workers aged 21 and over, the legal minimum hourly rate will rise from £12.71 to £13.21, an increase of 50p.

Workers aged 18 to 20 will see their hourly minimum rise from £10.85 to £11.27, while the rate for 16 and 17-year-olds and eligible apprentices will increase to £8.31.

For someone aged 21 or over working 35 paid hours a week, the 50p increase works out at an additional £910 a year before deductions.

But here's where it's worth looking beyond the headline;

How much of the minimum wage increase will you actually take home?

A worker aged 21 or over doing 35 hours a week could see their gross earnings increase by £910 annually.

Assuming the standard 20% basic income tax rate and 8% employee National Insurance rate apply to all those extra earnings, approximately £254.80 could go towards additional tax and National Insurance.

That would leave around £655.20 a year, or £54.60 a month, before pension deductions or changes to benefits.

And if you receive Universal Credit, higher wages could also affect the amount of support you receive.

That doesn't mean a pay rise is automatically cancelled out. It means there's a difference between earning more and keeping the whole increase.

We've explained the calculations in more detail in our guide to why a minimum wage change might not mean the full increase in your pocket.

Lifetime ISA changes: Withdrawal penalty reduced for some first-time buyers

There's important news for people saving towards their first home.

From 29 October 2026, the Lifetime ISA withdrawal penalty will reduce from 25% to 20% for existing LISA holders buying a property above the current £450,000 property-price cap, provided the purchase otherwise meets the qualifying conditions.

Previously, this situation could mean losing the government bonus and some of the money you'd originally saved.

For example, if you saved £4,000 into a Lifetime ISA and received the £1,000 government bonus, your balance would be £5,000 before any interest or investment changes.

A 25% withdrawal charge would take £1,250, leaving £3,750.

Under the new 20% rate, the charge would be £1,000, leaving the original £4,000 contribution intact in this example.

However, this isn't a blanket reduction for every withdrawal.

The standard 25% charge still applies to other unauthorised withdrawals, such as taking money out for an unexpected expense.

The £450,000 property-price cap itself hasn't changed.

What about the new First-Time Buyer ISA?

The Government has also confirmed that a new First-Time Buyer ISA will replace the Lifetime ISA for new savers from April 2029.

The replacement will retain a 25% government bonus on contributions of up to £4,000 a year, but the bonus will be paid when money is withdrawn for a qualifying first-home purchase.

The new account will have a £450,000 property-price limit, no upper age restriction for opening it and a maximum government bonus of £20,000.

Existing Lifetime ISA holders will be able to continue using their current accounts.

The Government has also outlined a separate Your First Home scheme, which could allow eligible buyers to purchase qualifying new-build properties in England with a 2.5% deposit and a government-backed equity loan.

However, that scheme's detailed eligibility and launch arrangements still need to be finalised.

For the full picture, read our guide to Budget 2026's Lifetime ISA changes and first-time buyer support.

Cash ISA allowance stays at £20,000, but savings tax is changing

The Chancellor has confirmed that the annual cash ISA allowance will remain at £20,000, reversing plans to reduce it to £12,000 for savers under 65.

That means the existing cash ISA subscription limit will be retained from April 2027.

However, there is another important change for people earning interest on savings held outside ISAs.

From 6 April 2027, the income tax rates applied to taxable savings interest will rise by a further two percentage points.

The new savings income tax rates will be:

• Basic rate: 24%.

• Higher rate: 44%.

• Additional rate: 49%.

These rates apply to savings income that is actually taxable. They don't mean everyone with a savings account will suddenly start paying tax on their interest.

The Personal Savings Allowance and other applicable tax-free allowances will still matter, while interest earned inside a cash ISA remains free from UK income tax.

For people managing smaller savings balances, the most important thing isn't necessarily whether they can use the full £20,000 allowance. It's making sure their savings are accessible when needed, earn a competitive rate and are in an account that suits their circumstances.

Side hustles: Trading allowance rises to £3,000

There's good news for people earning extra money through qualifying side hustles.

The Government has announced that the Income Tax Trading Allowance will increase from £1,000 to £3,000 a year from 6 April 2027.

This allowance can cover qualifying income from activities such as freelance work, selling goods as a business or providing occasional services.

It doesn't mean everybody can earn an extra £3,000 from any source without paying tax.

The allowance applies to qualifying trading and miscellaneous income, and there are important differences between earning money through a business activity and simply selling your old belongings.

It also doesn't automatically remove every possible reporting requirement, National Insurance consideration or impact on means-tested benefits.

For somebody who earns a little extra money alongside their main job, though, the higher allowance could reduce the amount of qualifying side-hustle income subject to income tax.

It's worth keeping records of what you earn and checking the rules before assuming all your additional income is tax-free.

Carer's Allowance changes: More flexibility for working carers

The Government has confirmed plans to replace the Carer's Allowance earnings cliff edge.

Under the current system, earning even slightly above the permitted weekly limit can mean losing the entire Carer's Allowance payment.

The Government intends to introduce a 100% taper, meaning payments will reduce by £1 for every £1 of calculated earnings above the limit, rather than disappearing all at once.

An estimated 48,000 carers in England and Wales could benefit.

However, the change won't begin until 2030–31, so the existing rules continue to apply in the meantime.

For people balancing paid work with caring responsibilities, particularly those with changing shifts or irregular earnings, understanding those existing limits remains essential.

Parental pay changes: More support for self-employed parents

The Budget also confirms plans to expand parental pay to more families.

A new Parental Allowance is planned from April 2029 for eligible self-employed fathers, partners and adopters in Great Britain.

The proposals will also help some people with irregular employment histories who don't currently qualify for statutory paternity or adoption pay, subject to their work and earnings history.

This could be particularly relevant to parents who work freelance, are self-employed or have moved between jobs.

But it isn't an immediate change to today's payments, and detailed eligibility requirements will need to be checked before families can plan around the new allowance.

Fuel duty freeze: What does the Budget mean for drivers?

The Chancellor has extended the existing 5p per litre fuel duty cut and freeze until 1 July 2027.

For drivers, this means the scheduled increase in fuel duty won't happen during that period.

However, freezing fuel duty doesn't guarantee that petrol and diesel prices at the pumps will stay the same.

Wholesale fuel costs, exchange rates and retailer pricing can all affect the amount you pay.

For people who rely on a car to get to work, particularly where public transport isn't a practical alternative, the duty freeze could help limit one source of additional cost.

The Government has also increased the tax-free mileage rate for eligible use of personal cars and vans for business travel, with a rate of 55p for the first 10,000 qualifying miles and 35p for qualifying miles above that threshold from April 2027.

These are tax-free mileage rates, not a guarantee that every employer will pay those amounts. Ordinary commuting to a permanent workplace generally doesn't qualify.

Food prices: Will supermarket shopping get cheaper?

The Budget confirms the suspension of import tariffs on more than 100 additional food products, building on earlier measures.

These include certain everyday foods, with the Government estimating that the combined tariff changes could save households up to £21 a year. That works out at around £1.75 a month.

However, these are estimated savings from lower import costs, not guaranteed reductions in every shopper's bill.

Supermarkets and suppliers may decide whether and how much of their reduced costs are passed on.

For shoppers, the practical approach remains to compare unit prices and check whether a promotion genuinely makes something cheaper, rather than assume that a cut to import duties will automatically reduce the cost of their regular basket.

State Pension 2027: Will pensioners have to pay income tax?

The Government has announced a new Pension Tax Allowance designed to prevent people whose total income is no higher than the full new State Pension from being brought into income tax simply because State Pension payments rise.

The measure will apply from April 2027 and is intended to operate during the remainder of this Parliament.

This is particularly relevant because the full new State Pension is expected to rise above the standard £12,570 Personal Allowance.

However, the protection shouldn't be confused with a blanket income tax exemption for all pensioners.

People receiving additional income, such as private pensions, earnings or taxable savings interest, may still have an income tax liability depending on their circumstances.

Business rates and alcohol duty: What happens to your local high street?

There's a mixture of support and additional costs for hospitality businesses.

From April 2027, qualifying pubs, social clubs and live music venues in England will receive 35% business rates relief.

The Government is also increasing the threshold for 100% Small Business Rate Relief for qualifying retail, hospitality and leisure properties from £12,000 to £18,000 in rateable value.

That could help thousands of smaller businesses with their fixed costs.

At the same time, alcohol duty will rise in line with inflation from February 2027.

That could mean additional tax on drinks, although it doesn't automatically mean the price charged at the bar will increase by exactly the same amount.

We've covered what it means for drinkers and pubs in our separate guide to Budget 2026 beer prices.

Gambling taxes: What's changing?

The Government is increasing Machine Games Duty from 20% to 25% on certain higher-stakes gambling machines from April 2027.

Adult gaming centres will also lose access to particular business rates reliefs in England.

These are taxes and relief changes affecting gambling businesses, not a new tax directly charged to people placing bets.

For consumers, it's important not to confuse higher taxes on gambling operators with direct financial protection from gambling-related harm.

If gambling is affecting your ability to cover bills, repay debts or manage everyday spending, free specialist support is available through GamCare.

What should you do following Autumn Budget 2026?

There's plenty to take in, but not every announcement requires you to do something immediately.

If your home is in council tax band A to D in England, it's worth checking the official information about the new £100 energy payment as local councils publish their arrangements.

If you're receiving minimum wage, you can work out approximately how much your gross pay will rise from April, remembering that deductions and benefits may change the amount you keep.

If you're saving for your first home, check the new LISA withdrawal rules before making any decisions about your deposit.

And if you earn extra money through a side hustle, keep records and check how the higher trading allowance will apply when it begins.

The main thing is to separate help that's arriving this winter from reforms that are still several years away.

After all, a promise of more money in 2029 won't help you pay a bill next week, and a saving on paper is only useful if you understand how it affects your actual budget.

That's where knowing the rules, checking your eligibility and making the most of the help available can make a difference.