What the autumn budget means for you

Rachel Reeves has delivered a historic budget - Labour's first in 14 years and the first from a female chancellor.  

We’ve summarised the key announcements from the budget that might affect you.  

Minimum wage increase  

Starting next April, the national living wage for those aged 21 and older will rise by 6.7%, from £11.44 an hour to £12.21.  

If you're aged 18 to 20, your national minimum wage will also rise, from £8.60 to £10 an hour.  

Apprentices will see the biggest pay bump, with hourly wages increasing from £6.40 to £7.55. 

Carer’s allowance 

Benefits 

For those receiving universal credit, there’s good news! The percentage of debt that can be taken from your monthly payment will drop from 25% to 15%.  

This change will help about 1.2 million of the poorest households keep more of their benefits each month. 

Pensions 

The government seems committed to making sure pensioners receive what they deserve. Thanks to the triple lock – which promises an increase each year by the highest of 2.5%, inflation, or earnings growth – the state pension is expected to rise by 4.1% in 2025-26.  

This means a £470 increase for over 12 million pensioners. 

Help for drivers 

If you’re concerned about rising fuel prices, you’ll be pleased to know that fuel duty will freeze next year, keeping the current 5p cut for another year. This means no higher taxes at the pumps! 

Tax changes 

There will be no increases in national insurance, VAT, or income tax for working people, which is good news for your finances.  

Air passenger duty 

Fortunately, fears about rising holiday costs haven’t materialised. While there will be a small increase of no more than £2 for economy-class short-haul flights, private jet taxes will go up by 50%.  

“That is equivalent to £450 per passenger for a private jet to, say, California,” said Reeves, in what was a swipe at the former prime minister Rishi Sunak who was sat opposite her as she made the announcement.  

A ‘penny off pints’ 

In a popular move, the chancellor announced a cut in duty on draft alcohol, meaning you can enjoy a penny off pints at your local.  

Breakfast clubs 

Investment in breakfast clubs will be tripled, providing more support for children. While this is great news, there was no mention of extending free school meals to all kids in primary school. 

Special needs education 

The chancellor has pledged an extra £1bn for special educational needs and disabilities, addressing an important issue in schools.  

Bus fare cap increase 

If you rely on public transport, you’ll notice that the single bus fare cap will rise from £2 to £3, which will be in place until December 2025.  

The cap applies to most bus services in England, but not in London, Greater Manchester, or West Yorkshire, which have their own fare limits. A single fare will still be £1.75 in London or £2 in Greater Manchester. 

To help people return to work, the chancellor announced a £240m package. This is part of the government’s plan to ensure everyone who can work has the opportunity to do so. 

Household support fund extension 

The household support fund (HSF) will be extended, with an extra £1bn available starting next year. This fund was first introduced on 6 October 2021 and has been extended multiple times since. It helps low-income households by providing grants for essential needs like energy and water bills, food, and other everyday expenses.