The Chancellor Rachel Reeves has announced a raft of changes to income and property taxes, cash ISAs, benefits, transport and more in her Autumn Budget on 26 November. The Money Matters team want to draw your attention to some of key changes that impact our customers’ finances and claims for welfare benefits:
End of the two-child limit
From April 2026: The two-child limit in Universal Credit will be removed. This means families with three or more children will receive an extra child element payment for each additional child.
State Pension increase
From April 2026: The New State Pension and Basic State Pension will rise by 4.8%, offering increased weekly amounts for pensioners.
National Minimum Wage increase
From April 2026: The National Living Wage will rise by 4.1%, increasing from £12.21 to £12.71 per hour.
The National Minimum Wage for 18 to 20-year-olds will increase by 8.5% from £10 to £10.85 per hour.
For 16 to 17-year-olds and apprentices, it will increase by 6% from £7.55 to £8.00 per hour.
Other benefits increases
From April 2026: the Universal Credit standard allowance will increase by 6%, and other working-age benefits will increase by 3.8%.
The maximum amount available for Universal Credit Childcare Costs will increase by £736.06 for each additional child above the two child cap.
Energy bills
From April 2026: The average household energy bill will fall by around £150.
Transport costs
From March 2026: Rail fares in England will be frozen for one year until March 2027.
Motability Scheme
From July 2026: Extra taxes will be added to the cost of leasing a car through the Motability scheme. Luxury vehicles will no longer be available through the scheme.
Prescription charges
From April 2026: NHS prescription charges in England will remain frozen at £9.90 for a single prescription.
Youth guarantee
All eligible 18 to 21-year-olds who have been on Universal Credit and looking for work for 18 months, will be guaranteed a six-month paid work placement.
Carer’s allowance overpayments
From 2026: The Department for Work and Pensions (DWP) will cancel existing Carer’s Allowance Overpayments debts. They will also refund any money that carers have already repaid.
Health and Disability Assessments
The DWP will increase the number of Work Capability Assessments (WCA) carried out. People receiving Personal Independence Payment (PIP) will have their award review periods extended, and there will be more face-to-face assessments.
If you have any doubts, questions or concerns on any of these updates, you can get in touch with our Money Matters team at moneymatters@greatplaces.org.uk
