On Wednesday, 28 October, Chancellor John Healey presented the Budget for 2027. The government called it “breathing space” for families and businesses. Here are the most important changes for household finances.
Minimum wage. From 1 April 2027, the National Living Wage will rise by 3.9% to £13.21 an hour. A full-time worker will earn around £910 more a year.
Energy. Around 20 million households in England in council tax bands A–D will receive a £100 energy payment, paid from January 2027. Zero VAT on electricity stays until July 2027, which according to the government will cut the Ofgem price cap by around £50 from April. Ofgem is also to scrap the standing charge on gas, possibly as early as 2027.
Fuel. The 5p cut in fuel duty stays for another six months, and the inflation-linked increase is postponed to 1 July 2027.
Savings and rent. From April 2027, tax on interest and on rental income will rise by 2 percentage points. The government says 84% of taxpayers will not feel this. The annual ISA limit stays at £20,000 – the planned cut of the cash ISA limit to £12,000 will not go ahead.
Pensioners. From April 2027, pensioners whose income does not exceed the new State Pension will not pay income tax.
Housing. The Lifetime ISA withdrawal charge fell from 25% to 20% from 28 October 2026. The “Your First Home” scheme is to help around 70,000 people buy their first home.
Small income. The amount of income from side earnings that is free of tax (the trading allowance) will rise from £1,000 to £3,000.
What it means for you
If you work on the minimum wage, you will get a pay rise from April. If you live in England in a band A–D home, you will receive £100 towards your bills this winter – usually without applying. If you let property or have large savings outside an ISA, prepare for higher tax from 2027. In Scotland, Wales and Northern Ireland, energy support will be organised by the governments of those nations.
Our assessment
This is a Budget of short-term relief: most of the support runs until July 2027. Some changes still require a Finance Bill, so details may change. For working Poles the balance is rather positive; for savers and landlords – negative.
What to do
- Check your council tax band on GOV.UK.
- If you have savings outside an ISA, consider moving them into an ISA before April 2027.
- Read the full Budget summary and check the details with an accountant.
Sources: GOV.UK – Budget 2026; GOV.UK – What the Autumn Budget 2026 means for your energy bills (28 October 2026).
We assess factual corrections and substantive responses. Verified changes are reflected in our reporting.
Contact the editorial desk →
