Autumn Budget 2025

Key information from the Autumn Budget 2025

UK growth, inflation and debt

• The Office for Budget Responsibility (OBR) predicts the UK economy to see growth of 1.5% this year, raised from the 1% it issued in March
• Inflation is forecast to average 3.5% over the year, then falling to 2.5% in the following year, before settling back at the government’s 2% target in 2027

Personal taxation

• Thresholds for National Insurance (NI) and income tax will stay frozen for an additional three years beyond 2028, pulling more people into higher brackets over time
• Those under 65 are capped at placing £12,000 of their allowance into cash Isas (Individual Savings Accounts), with the remaining portion of the £20,000 limit reserved for investments
• Basic and higher income tax rates on property, savings and dividend earnings to rise by 2 percent

Wages, benefits and pensions

• From April, the cap preventing households on universal credit or child tax credit from receiving support for a third or later child will be removed.
• The legal minimum wage for over-21s will increase by 4.1% in April, moving from £12.21 to £12.71 per hour
• Pay for those aged 18–20 will increase 8.5%, rising from £10 to £10.85 per hour as part of the shift towards a single adult rate
• Both the basic and new state pension set to increase by 4.8% from April, surpassing current inflation, under the “triple lock” policy
• Individuals contributing to pensions via salary sacrifice schemes will begin paying NI on contributions above £2,000 annually starting in 2029.
• The Help to Save programme, providing bonuses on savings to those receiving universal credit, will be expanded and extended beyond 2027

Housing and Property

• Properties in England valued at over £2m will face a new council tax premium of £2,500–£7,500, following the revaluation of properties in bands F, G and H