Autumn Budget 2026: What it means for your money

Chancellor John Healey delivered the Autumn Budget 2026 to the House of Commons on Wednesday 28 October 2026. This page is a clear summary of the key points from the Budget documents that affect people’s money, in plain English. It only includes measures that were actually announced in the Budget documents. Where a figure still needs another official source, this page says so instead of guessing it.

This is information only and not personal financial advice.

Last updated: 29 October 2026.

By Emily Harrington, Editor of UK Markets Today. [Photo placeholder: Emily Harrington, Editor] Emily writes and edits UK personal finance content, covering savings, ISAs, credit, mortgages and daily market numbers, with figures checked against official sources. Read her full author page here: Emily Harrington, Editor of UK Markets Today.

Autumn Budget 2026 in 30 seconds

Your Cash ISA limit stays at £20,000. The government decided not to cut it to £12,000.
Tax on savings income rises by 2 percentage points from 6 April 2027, to 24%, 44% and 49%.
Households in England in Council Tax bands A to D get a £100 Household Energy Payment, paid directly into bank accounts from January 2027.
Ofgem has been asked to abolish gas standing charges on domestic bills, aiming for delivery by the end of 2027 or as soon as possible after then, with the cost recovered through unit rates.
A new Pension Tax Allowance starts in April 2027, so pensioners whose total income is up to the value of the full new State Pension are not brought into paying tax just because the State Pension is uprated.
The National Living Wage rises to £13.21 an hour from 1 April 2027, and the National Minimum Wage for 18 to 20 year olds rises to £11.27 an hour.
The Trading Allowance rises from £1,000 to £3,000 from 6 April 2027.
From 29 October 2026, Lifetime ISA funds can be withdrawn for a qualifying first home purchase above the £450,000 price cap, with a reduced withdrawal charge of 20%.

Energy bills and cost of living support

The Budget includes a £100 Household Energy Payment, paid directly into bank accounts from January 2027. It is for households in England in Council Tax bands A to D, covering up to 20 million households. The devolved governments receive a Barnett share for their own arrangements, so this is not a single UK wide cash payment to every household.

On standing charges, the Budget asks Ofgem to abolish gas standing charges on domestic bills, aiming for delivery by the end of 2027 or as soon as possible after then. The cost will be recovered through unit rates instead, which means the fixed daily charge goes, but the price per unit of gas used goes up to cover it. That helps lower gas users most, and high gas users could pay more, because more of the bill will depend on usage. Electricity standing charge reform will be detailed next year, so electricity standing charges are not abolished by this Budget.

On energy debt, Ofgem and the Government have also announced a one-off Debt Relief Scheme for debt built up during the 2022 to 2024 energy crisis, scheduled to launch in spring 2027, with no application yet. See our energy debt write off scheme guide for who may qualify and what to do now.

Two other cost of living extensions were announced. The 0% VAT rate on household electricity is extended to July 2027, and the 5p fuel duty cut is extended to 1 July 2027. Fuel duty is a per litre tax, so keeping the cut in place keeps pump prices lower than they would be if the cut ended, but it does not cut the price by a further 5p.

Tax changes that affect individuals

Tax on savings income rises by 2 percentage points from 6 April 2027, to 24%, 44% and 49%, across the UK. As a simple example, £1,000 of taxable savings interest taxed at the basic rate would cost £240 in tax at 24%, compared with £200 at the old 20% rate, an increase of £40. The exact tax you pay still depends on your total income, your personal allowance and any savings allowance that applies to you.

A new Pension Tax Allowance is introduced from April 2027. It runs from 6 April 2027 to 5 April 2030, and it is legislated in Finance Bill 2026-27. It means pensioners whose total income is up to the value of the full new State Pension are not brought into paying tax because of State Pension uprating alone. There is a taper for incomes just above that value, so the protection does not stop suddenly at one pound over the limit.

The Trading Allowance rises from £1,000 to £3,000 from 6 April 2027. That is £2,000 more income from casual trading that can be earned without paying tax on it, up to the new limit.

On pay, the National Living Wage rises by 3.9% to £13.21 an hour from 1 April 2027, and the National Minimum Wage for 18 to 20 year olds rises by 3.9% to £11.27 an hour. This is a wage rate change, not a tax change, and take home pay still depends on tax, National Insurance and any student loan or pension deductions.

What it means for savers, ISAs and bank accounts

For savers, the most important point is what did not change. The government has decided not to reduce the cash ISA limit, so it remains at £20,000. An earlier reported cut to £12,000 for under 65s from April 2027 is not in the Budget. If you were holding off an ISA decision because of that report, the confirmed position is that the £20,000 limit stays.

The other side of that coin is the savings tax rise above. Keeping the £20,000 ISA limit matters more now, because interest inside a cash ISA stays tax free, while taxable savings interest outside an ISA will be taxed at the higher 24%, 44% and 49% rates from April 2027. Check our current rates before you move money, because rates change and the best rate on the day matters more than the Budget headline: Best Cash ISA Rates and Best Savings Accounts.

For bank accounts themselves, the Budget does not announce a new customer account charge or a new switch bonus. It does temporarily raise the Bank Corporation Tax Surcharge, from 3% to 6%, for 15 months from 1 January 2027 to 31 March 2028. That is a tax on banks, not a charge on your current account, and this page does not claim it will or will not change bank pricing.

One practical point for your money: the £100 Household Energy Payment is paid directly into bank accounts, so make sure the account details held for that payment are correct when the scheme opens. This page will update with the payment route when the official scheme detail is published.

What it means for mortgages and housing

The Budget does not announce a direct change to mortgage interest rates. Mortgage costs still follow the Bank of England Bank Rate and each lender’s own pricing, not a Budget rate. If you are coming to the end of a fixed deal, the Budget alone does not change what your lender will offer you.

The housing measure that is announced is for Lifetime ISA holders. From 29 October 2026, Lifetime ISA funds can be withdrawn for a qualifying first home purchase above the £450,000 price cap, with a reduced withdrawal charge of 20%. That helps first time buyers in higher priced areas who were previously blocked by the cap, but it only applies to a qualifying first home purchase, and the other Lifetime ISA rules still apply.

For everyone else, the housing effect of this Budget is indirect: through wages, energy bills and savings tax, rather than through a mortgage rate or a house price measure announced in the Budget documents summarised here.

Pensions and pay

The State Pension triple lock continues through April 2029, and an adjusted triple lock applies from April 2030. The Budget document itself does not print a confirmed weekly rate for the full new State Pension in April 2027, so this page does not present a precise weekly figure as a confirmed Budget figure. The exact uprated weekly rate awaits the DWP uprating source, and this page will be updated when that official figure is published.

What is confirmed for pensioners is the Pension Tax Allowance above, from April 2027 to April 2030, with a taper just above the full new State Pension value. Its purpose is to stop State Pension uprating alone from dragging pensioners who rely only on the State Pension into income tax.

For workers, the confirmed pay rates are £13.21 an hour for the National Living Wage and £11.27 an hour for 18 to 20 year olds, both from 1 April 2027.

Key takeaways for your money

Do this next, in this order:

Do not act on the old £12,000 cash ISA cut report. The limit stays at £20,000.
If you hold taxable savings outside an ISA, plan for the higher savings tax rates from April 2027, and check whether an ISA shelters that interest instead.
If you are in England in Council Tax bands A to D, look out for the £100 Household Energy Payment into your bank account from January 2027.
If you are a lower gas user, the planned end of gas standing charges should help, but check your unit rate when the change lands, because the cost moves to the unit rate.
If you are a pensioner, the Pension Tax Allowance from April 2027 is designed to protect you from tax caused by State Pension uprating alone, but wait for the confirmed DWP weekly rate before budgeting on a precise figure.
If you are a Lifetime ISA saver buying a first home above £450,000, the reduced 20% withdrawal charge applies from 29 October 2026 for a qualifying purchase.

Where to check next: UK Markets Daily for the end of day market briefing, Gold Price Today UK for gold per gram in pounds, Money Weather for tomorrow’s costs and deadlines, Check Your Credit Score Free and Free Credit Report for your free credit file routes, and Best Cash ISA Rates and Best Savings Accounts for current rates.

Frequently asked questions

What were the main money measures in the Autumn Budget 2026?

The main money measures were a £100 Household Energy Payment from January 2027 for Council Tax bands A to D in England, Ofgem being asked to abolish gas standing charges aiming for the end of 2027, savings tax up 2 percentage points from April 2027, a new Pension Tax Allowance from April 2027 to April 2030, the Cash ISA limit staying at £20,000, the National Living Wage rising to £13.21 an hour, the Trading Allowance rising to £3,000, and a reduced 20% Lifetime ISA withdrawal charge for qualifying first homes above £450,000 from 29 October 2026.

How does the Budget affect energy bills?

Households in England in Council Tax bands A to D get £100 paid directly into their bank account from January 2027. Gas standing charges are to be abolished, aiming for the end of 2027 or as soon as possible after then, with the cost recovered through unit rates. The 0% VAT rate on household electricity is extended to July 2027, and the 5p fuel duty cut is extended to 1 July 2027. Electricity standing charges are not abolished by this Budget.

Does the Budget change anything for savers or ISA holders?

Yes, in two ways. The Cash ISA limit stays at £20,000, so the reported cut to £12,000 is not happening. At the same time, tax on savings income outside an ISA rises by 2 percentage points from 6 April 2027, to 24%, 44% and 49%. Interest inside a cash ISA stays tax free, which makes the ISA limit more valuable for taxable savers.

Does the Budget change mortgage rates?

No direct mortgage rate change was announced in the Budget measures summarised here. Mortgage costs still follow the Bank of England Bank Rate and lender pricing. The housing measure announced is the Lifetime ISA change for qualifying first homes above £450,000, with a reduced 20% withdrawal charge from 29 October 2026.

What is the confirmed State Pension rate for April 2027?

The Budget confirms the triple lock continues through April 2029, with an adjusted triple lock from April 2030, and it confirms the Pension Tax Allowance from April 2027. It does not itself print a confirmed weekly rate for the full new State Pension in April 2027, so this page does not give a precise weekly figure as a confirmed Budget figure. That figure awaits the DWP uprating source.

What should I do first after the Budget?

First, ignore the old £12,000 cash ISA cut report, because the limit stays at £20,000. Second, if you have taxable savings outside an ISA, check whether moving that money into an ISA shelters it from the higher savings tax rates from April 2027. Third, if you are in Council Tax bands A to D in England, watch for the £100 energy payment into your bank account from January 2027.

Is this financial advice?

No. This is information only and not personal financial advice. Nothing here is a tip to buy, sell, switch or invest, and your own position depends on your income, savings, mortgage and tax position. If you need personal advice, speak to a regulated financial adviser.

Sources

GOV.UK, Budget 2026 document, published 28 October 2026, full document HC 726. HM Treasury, GOV.UK, 31 July 2026: Budget date confirmed as Wednesday 28 October 2026, Chancellor John Healey MP. Earlier pre-Budget expectations and reports that were on this page before 29 October 2026, including an earlier pensioners figure and the £12,000 cash ISA cut report, are not carried forward as confirmed measures, because they are not confirmed in the Budget document. This page was rewritten on 29 October 2026 to post-Budget confirmed measures only.