On Wednesday 28 October 2026 the Chancellor, John Healey, delivered the Autumn Budget.
Since then there has been plenty of discussion, a few surprises and probably more financial jargon than anyone needed. Now we’ve had a few days to digest it all, let’s look beyond the headlines.
From savings and pensions to wages, there are changes worth knowing about, although many aren’t due to take effect until 2027. Here are the key announcements in plain English, so you can see what could matter to you, your family or your business.
One of four
Savings and ISAs
The planned cut to the Cash ISA allowance for under 65s has been scrapped. You can still put up to £20,000 a tax year into ISAs, all in cash if you wish.
Tax on savings interest rises by four percentage points from 6 April 2027: to 24% for basic rate taxpayers on interest above the £1,000 Personal Savings Allowance, 44% for higher rate taxpayers above £500 and 49% for additional rate taxpayers. Tax on rental profits rises by four points from the same date.
If you were planning around a £12,000 Cash ISA limit, you no longer need to. Savers with larger cash balances outside an ISA are likely to pay more tax on their interest from April 2027.
Make full use of your ISA allowance each tax year, check how much interest you earn outside ISAs and, if you are married or in a civil partnership, consider whether savings are held in the most tax-efficient name.
The planned cut to the Cash ISA allowance has been scrapped. The £20,000 allowance stays.
Two of four
Pensions and the State Pension
The State Pension rises by 3.9% under the triple lock, taking it above the £12,570 personal allowance for the first time. A new Pension Tax Allowance from 6 April 2027 is intended to shield people with no other retirement income from tax on their State Pension. The triple lock stays for this Parliament.
As announced previously, most unused pension funds and death benefits will count towards your estate for Inheritance Tax from 6 April 2027. Separately, salary sacrifice pension contributions above £2,000 a year will lose their National Insurance exemption from April 2029.
People living mainly on the State Pension should not face a new tax bill as it rises. If your estate plan relies on passing on your pension free of Inheritance Tax, that plan needs reviewing before April 2027.
Book a review if your pension forms a large part of what you intend to leave behind. The same goes if you or your employees use salary sacrifice. Neither needs a rushed decision, but both benefit from time to plan.
Three of four
Saving for a first home
A new First Time Buyer ISA launches in April 2029 and is expected to replace the Lifetime ISA. It will pay a 25% bonus on contributions of up to £4,000 a year towards a first home worth up to £450,000, with no upper age limit and no withdrawal charges.
From 29 October 2026 the Lifetime ISA withdrawal charge falls from 25% to 20% for people buying a home above the £450,000 price cap.
If you are helping children or grandchildren save for a first home, it is worth reviewing which account they use now and how the change in 2029 could affect them.
Four of four
Wages and your business
From April 2027 the National Living Wage for workers aged 21 and over rises by 3.9% to £13.21 an hour. The rate for 18 to 20 year olds rises to £11.27 and the rate for 16 and 17 year olds and apprentices to £8.31.
Higher wage costs for employers, plus the salary sacrifice change from April 2029, may affect how you reward staff and how you structure workplace pension contributions.
Review your workplace pension scheme and any salary sacrifice arrangements well ahead of the changes. Our page on company pensions and auto enrolment explains how we help employers.
Around the home
The Budget also included a £100 energy payment to 20 million households this winter and extended both the VAT cut on electricity bills and the fuel duty cut to July 2027.
What should you do now?
Knowing what is changing is only half the story. Understanding how it might affect your own finances is where advice makes the difference. Many of these changes do not start until April 2027 or later, so there is time to plan properly rather than react.
Before the Budget we set out what was being talked about and what we knew. If anything here could affect you, ring us on 01772 864314 and we will look at it with you.
Figures are from the Autumn Budget of 28 October 2026 and official announcements. Some measures still depend on legislation and further detail.
Want to talk this through?
A free introductory call with an adviser. No obligation afterwards.
This article is for general information only. It is not personal advice and it is not a recommendation. The value of investments and the income from them can fall as well as rise and you may get back less than you invested. Past performance is not a reliable indicator of future results. Tax treatment depends on individual circumstances and may change. Fernleigh Wearden & Company Ltd is authorised and regulated by the Financial Conduct Authority, firm reference number 929372.
