Who wins and loses following the Autumn Budget?

These changes may not dominate the news headlines, but their combined effect could significantly reshape your household budget over the coming years. 

Let’s unpack the real-world implications. Who stands to gain, and who may need to adjust their plans.

1. Pensioners (State Pension)

• The triple-lock guarantee ensures the State Pension rises by 4.8% from April 2026, adding around £575 to annual income for a full entitlement. This could offer much-needed support for retirees reliant on fixed income.

2. Low-income workers and families

• The National Living Wage increases to £12.71 per hour for those aged over 21, boosting full-time earnings by roughly £900 annually.
• Universal Credit rises by 6.2%, with other benefits up 3.8%, providing extra income for those already on low pay.

3. Households (energy bills)

• From April 2026, green levies will be scrapped, trimming around £150 off annual energy bills. A potential boost to the wallets of all households. 

4. Parents with more than two children

• The much-debated “two-child cap” on benefits is fully scrapped from April 2026. The government says this measure will lift 450,000 children out of poverty.

1. Middle and higher earners: the "fiscal drag" effect

• Income Tax and National Insurance thresholds are frozen until April 2031, extending the “stealth tax” of fiscal drag.
  • According to statistics published by the Office for Budget Responsibility (OBR), by 2029–30, around 780,000 more people will pay tax, 920,000 will join the higher rate, and 4,000 the additional rate.
  • Someone on £40,000 pays an extra £321 over four years; at £44,000, it's about £843.

2. Company Directors, Investors and landlords

• A 2 percentage-point tax hike on dividends comes in April 2026, and the same increase applies to savings and property income from April 2027.
  • Dividend rates rise: basic rate to 10.75%, higher rate to 35.75%, impacting those that earns dividends outside of tax shelters and company directors remunerated through dividends.
  • Savings and rental income will be taxed at up to 47% by 2027, reducing returns for investors outside tax shelters. 

3. Savers who prefer Cash ISAs

• From April 2027, under-65s are capped at £12,000 per year into Cash ISAs (remaining £8,000 must go into Stocks & Shares ISAs), while over-65s keep the £20,000 limit for Cash ISAs.
• This policy nudges savers toward investing even when they might prefer safe, easily accessible cash.

4. High pension contributors using salary sacrifice

• Beginning April 2029, only the first £2,000 of annual pension contributions via salary sacrifice will be exempt from National Insurance (NI). Anything above this becomes subject to employee and employer NI.
  • Aimed at higher earners, this will reduce the efficiency of generous workplace pension schemes which operate via salary sacrifice by hundreds of pounds annually.

5. EV Owners

• A new Electric Vehicle Excise Duty (eVED) introduces an annual pay-per-mile charge of 3p per mile for electric cars, and 1.5p for plug-in hybrids starting April 2028.
• The Office for Budget Responsibility (OBR) estimates that the average driver (8,500 miles/year) could pay an extra £255 annually—about half the previous fuel duty burden. 

6. High-value homeowners (“mansion tax”)

• From April 2028, properties over £2 million will incur a £2,500 annual surcharge, increasing to £7,500 for homes above £5 million, on top of council tax.

This Budget doesn’t whip up immediate shockwaves, but its slow build of unseen taxes and new charges add up. Early planning enables you to:

• Manage financial drag through budgeting, reviewing tax positions and strategies to mitigate tax.
• Position investments more tax-efficiently.
• Adjust pension contributions ahead of NI changes where appropriate.
• Update your lifestyle budget to include rising EV and housing-related costs.

The message is clear: the Budget is a mixed bag, offering modest gains for some, and introducing stealth taxes and new charges for many. A proactive financial plan, tailored to today’s realities, could help you protect your income, savings, and long-term goals. 

If you’d like to explore how these changes affect your finances, our team of experienced advisers are ready to help. There’s no financial commitment required upfront; you’ll only pay if you decide to proceed with the recommendations outlined in your personalised financial plan. 

We’re here to help you make confident, informed decisions, whatever your next steps.

This article is for information purposes only. It is not intended as investment advice.

Fees and charges apply.

Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. Also, in this article we refer to the tax rate and thresholds set for England and Northern Ireland, these may differ for the devolved nations of Scotland and Wales.

The retirement benefits you receive from your pension plan depend on a number of factors including the value of your plan when you decide to take your benefits which isn’t guaranteed and can do down as well as up. The benefits of your plan could fall below the amount(s) paid in.