Autumn Budget 2026: Royal London reaction

Royal London experts respond to the 2026 Autumn Budget, exploring what it means for pensions, savings and household finances.

Jamie Jenkins, Director of Policy

"It was well trailed that this Budget would focus on immediate measures to ease the cost of living, and the cost of doing business for smaller firms, rather than big shifts in spending or taxation. 

"While people will no doubt debate the detail, help with energy bills, fuel costs and first-time buyer incentives will be broadly welcomed. Small businesses, particularly those in hospitality, may at least feel that their concerns are being heard, with some easing of the pressures they currently face.

"However, there are longer-term trends emerging that the Government will need to consider in the years ahead. For example, the days of politically painless tax rises through perpetually frozen thresholds seem to be nearing an end.

"For example, as the State Pension rises above the Personal Allowance, the idea of a 'stealth tax' somewhat loses its stealth. This leaves a complex set of arrangements to protect those on the lowest incomes from the somewhat odd scenario of having to pay back in taxes some of the money provided by the state as a benefit."

Pension Tax Allowance

"Excluding people who rely on income up to the value of the full new State Pension from being pulled into paying income tax is a welcome protection measure.

"However, it doesn’t make the wider issue of frozen tax thresholds disappear. Many pensioners receive income from workplace or private pensions alongside their State Pension, and as pension incomes rise while tax thresholds remain frozen, more people could find themselves paying tax or paying tax on a greater proportion of their income.

"It’s increasingly important for people approaching or in retirement to understand how their different sources of income interact with the tax system."

Cash ISA

"It was questionable how effective the reduced limit would be in encouraging people to invest, and whether the adverse impact on mortgage funding would outweigh any benefit. There are other ways of encouraging people to invest, where it's appropriate for them to do so, and carrots will certainly be more welcome than sticks.

"Our research shows that six in ten people who have money in cash ISAs could be persuaded to move some of their savings into a stocks and shares ISA, with the potential for better returns being the main driver for any switch."

Clare Moffat, Pensions and Tax Expert

Home ownership

"Making home ownership more accessible could have benefits that extend well beyond getting the keys to a first home. Supporting more people onto the property ladder today could mean fewer face the cost of renting in retirement, helping to strengthen their financial resilience in later life.

"Buying a home may be the first time many seek financial advice or consider protection, creating an opportunity to build good financial habits at an important stage of their lives."

Sarah Pennells, Consumer Finance Specialist

Household gas bills

"The combination of removing standing charges and giving lower income households in England a £100 payment should reduce some of the financial pressure facing families. Energy bills are a cause for concern for millions. Our research shows that only 56% of UK adults say they have been able to make all their regular energy bill payments comfortably. With a large rise in the energy price cap expected in January, any help with energy bills is likely to be welcomed."