Budget summary: this year’s changes explained

The Chancellor has delivered the Autumn Budget, and there were a few measures that could have an impact on your finances. Here are the key things worth knowing.

One of the main announcements was some help with energy bills. The temporary zero rate of VAT on electricity will continue until next July, rather than running out at the end of March. The Government says this should reduce the annual energy price cap by around £50 in April.

There will also be a £100 Household Energy Payment from January for households in Council Tax bands A to D in England, with funding for Scotland, Wales and Northern Ireland to provide similar support.

There are longer-term changes as well. The Government has asked the energy regulator Ofgem to abolish gas standing charges, although this isn’t expected until the end of 2027 or later. The unit price of gas will rise instead, and while the government says six in ten households will pay less, others will pay more. Electricity standing charges will also be reformed.

There was news for pensioners too. From April, a new Pension Tax Allowance means pensioners won’t pay income tax if their total income is below the full new State Pension, which will be £13,036 a year from April.

And the Government has reversed plans to cut the annual cash ISA limit, from £20,000 a year to £12,000 for those aged under 65. The changes mean that people will be able to save up to £20,000 a year in a cash ISA. However the chancellor also announced plans for a new ISA incentive to encourage people to invest in stocks and shares ISAs for the first time.

There are changes to the Lifetime ISA too. First-time buyers purchasing a home costing more than £450,000 will be able to use their LISA savings and pay a reduced 20% withdrawal charge, compared to the previous level of 25%. And from April 2029, a new First Time Buyer ISA will replace the Lifetime ISA for new savers, with a 25% government bonus and no upper age limit.