Autumn Budget 2026: what it means for your money

Chancellor John Healey's Budget on 28 October 2026 kept the headline rates of income tax, National Insurance and VAT the same. For households the main changes are help with energy bills and the cost of driving this winter, and higher tax on savings interest and rental profits from April 2027. Homes in council tax bands A to D in England are due a £100 Household Energy Payment from January 2027. VAT on home electricity stays at 0% until 30 June 2027, and the 5p fuel duty cut lasts until then too. From 6 April 2027 savings interest above your allowances and rental profits are taxed at 24%, 44% or 49%. The National Living Wage rises to £13.21 an hour, side income up to £3,000 becomes tax-free, and a new Pension Tax Allowance stops pensioners on about the full State Pension paying small amounts of tax.

Announced by

HM Treasury (Chancellor John Healey)

Announced on

28 October 2026

Stage

announced

Takes effect

From 29 October 2026 to 2030 to 2031, depending on the measure

• Basic-rate employee renting a band B flat in England, with £1,500 of savings interest: £100 energy payment and 0% VAT on electricity. Tax on savings rises from £100 to £120 a year

  £1,500 − £1,000 allowance = £500 × 20% = £100; × 24% = £120 (illustrative calc)

• Couple with two children, one earning £60,000, in a band C home in England: £100 energy payment. Child Benefit of £46.55 a week in 2027 to 2028. Tax on pay unchanged

  £28.00 + £18.55 = £46.55 a week (illustrative calc). Child Benefit charge thresholds not covered in the documents we checked

• Pensioner with total income of £13,000: No income tax from April 2027, instead of £86

  (£13,000 − £12,570) × 20% = £86, covered by the Pension Tax Allowance (illustrative calc)

• Self-employed plumber driving 15,000 business miles a year: Up to £300 in extra tax savings from both mileage changes

  Treasury figure, Budget 2026 section 4.4

• Basic-rate landlord with £10,000 rental profit and no mortgage, in England: Pays £400 a year more from April 2027

  £10,000 × (24% − 20%) = £400 (illustrative calc)

• Full-time worker on the National Living Wage: £910 more a year before tax from 1 April 2027

  Treasury figure, Budget 2026 section 4.5

• Basic-rate taxpayer: Tax on your pay is unchanged in 2027 to 2028. If you have savings interest over £1,000 outside an ISA, the extra is taxed at 24% from April 2027.
• Higher-rate taxpayer: Your bands are frozen, so a pay rise can pull more income into the 40% band. Savings interest over £500 is taxed at 44% from April 2027.
• Earning £100k or more: The Personal Allowance still tapers away above £100,000. Savings interest at the additional rate is taxed at 49% from April 2027.
• Below the personal allowance: No income tax changes for you. If you are in a band A to D home in England, the £100 energy payment applies.
• Saver: Interest above your allowances is taxed 4 points more than in 2026 to 2027. ISAs stay tax-free and the cash ISA limit stays at £20,000.
• Landlord: Rental profits in England, Wales and Northern Ireland are taxed at 24%, 44% or 49% from April 2027.
• Investor: Dividend rates and the £500 allowance are unchanged. The government will explore a new incentive for first-time stocks and shares ISA investors.
• Company director: Business Asset Disposal Relief's lifetime limit halves to £500,000 from April 2027. Dividend tax rates stay the same.
• State Pension age or over: From April 2027 the Pension Tax Allowance removes or cuts income tax for total incomes up to £13,319. The Triple Lock is set to change from the next Parliament.
• Self-employed: The trading allowance rises to £3,000, mileage above 10,000 miles rises to 35p, and self-employed fathers and partners get parental pay from April 2029.
• Employed (PAYE): Tax and National Insurance on pay work as now. Minimum wage rates rise on 1 April 2027.
• Drive a petrol or diesel car: Fuel duty stays at 52.95p a litre until 30 June 2027, then rises to 60.59p. Car tax goes to £210 for most newer cars from April 2027.
• Drive an electric car: Public charging gets 20% VAT from 1 November 2026, and pay-per-mile tax of 3p a mile starts in April 2028.
• Children 5–17: Child Benefit is £28.00 a week for the eldest child and £18.55 for others in 2027 to 2028.
• Caring for someone: The Carer's Allowance cliff edge is replaced by a taper, but not until 2030 to 2031.
• Get benefits: The Universal Credit £2,500 surplus earnings threshold is kept for another year from April 2027. Jobs Guarantee support is promised for 18 to 24 year olds on Universal Credit.
• Renting: The £100 energy payment depends on your home's council tax band, not on whether you own it. Landlords' groups warn tax rises could push up rents.
• Under 25: The minimum wage for 18 to 20 year olds rises 3.9% to £11.27 an hour from April 2027.

England

£100 Household Energy Payment for bands A to D, £100 million for councils for extra targeted help, and £2 single bus fares outside London. The Triple Lock change is linked to free personal care and a National Care Service in England.

Scotland

The Scottish Government receives Barnett funding to offer support like the £100 payment. Income tax on earnings is set by the Scottish Parliament, and Scotland can set its own property income rates. Savings rates are UK-wide.

Wales

Barnett funding for similar energy support. The Senedd sets Welsh rates of income tax and can set property income rates. The Carer's Allowance taper covers Wales.

Northern Ireland

Funding for comparable help with electricity bills, with extended VAT relief expected from April 2027. Tariffs on kerosene heating oil are suspended until December 2028.

1. 29 October 2026

   Lifetime ISA charge cut

   Withdrawal charge for homes over the Lifetime ISA price cap falls from 25% to 20%.

2. 1 November 2026

   VAT on public EV charging

   Standard rated at 20%.

3. 1 January 2027

   Energy payment, bus fares and fuel duty

   £100 Household Energy Payment from January. £2 bus fare cap starts. Fuel duty cut extended.

4. 1 February 2027

   Alcohol duty rises

   In line with RPI.

5. 1 April 2027

   Minimum wage and car tax

   National Living Wage £13.21. VED standard rate £210.

6. 6 April 2027

   New tax year changes

   Savings and property rates of 24%, 44% and 49%. Pension Tax Allowance. Trading allowance £3,000. Mileage 35p above 10,000 miles. Pensions within inheritance tax.

7. 30 June 2027

   VAT and fuel duty cuts end

   0% VAT on home electricity and the 5p fuel duty cut end.

8. 1 July 2027

   Fuel duty rises

   To 60.59p a litre.

9. 31 December 2027

   Gas standing charges target

   Aim to abolish by the end of 2027 or as soon as possible after.

10. 1 April 2028

    Pay-per-mile for electric cars

    3p a mile for battery electric cars.

11. 1 April 2028

    High Value Council Tax Surcharge

    Extra charge on homes worth £2 million or more, from April 2028.

12. 1 April 2029

    First Time Buyer ISA and self-employed parental pay

    Both due from April 2029.

Budget

The Chancellor's yearly statement on tax and spending, with documents setting out every change.

Personal Savings Allowance

Interest you can earn tax-free each year: £1,000 for basic-rate taxpayers, £500 for higher-rate.

Council tax band

A letter from A to H (A to I in Wales) based on your home's value, used to set council tax.

Triple Lock

The current promise to raise the State Pension by the highest of earnings growth, inflation or 2.5%.

Finance Bill

The law that makes Budget tax changes official.