UK Autumn Budget 2026: Key Changes and What They Mean for You 

From tax-free savings to household bills, here’s a quick look at the key Budget announcements and what they could mean for your money. 

More Reasons to Save Tax-Free 

• Cash ISA allowance stays at £20,000. The proposed reduction to £12,000 has been scrapped, so eligible savers can continue making the most of their annual tax-free allowance. 

Note: Cash ISAs are only available to UK residents aged 18 or over with a valid UK National Insurance Number (NINO). Eligibility criteria and terms apply.   

• Tax on savings interest is going up. From April 2027, tax rates on taxable savings interest will increase to 24%, 44% and 49%, depending on your tax band. Interest earned in an ISA remains tax-free. 

• Income Tax thresholds remain frozen. The Personal Allowance stays at £12,570 until 2031. 

Some Relief for Everyday Costs 

• Energy bills: The 0% VAT rate on qualifying electricity is extended until July 2027, with an additional £100 payment for eligible households in England. 

• Petrol and diesel: The 5p-per-litre fuel duty reduction continues until July 2027. 

• Bus fares: The £2 single-fare cap returns to participating services outside London throughout 2027. 

• Gas bills: Plans are underway to remove standing charges, although this won't necessarily mean lower bills for everyone. 

More Support for Workers and Homebuyers 

• Higher minimum wage: Workers aged 21 and over will see the National Living Wage rise to £13.21 an hour from April 2027. 

• Help for first-time buyers*: A new scheme will offer eligible buyers government equity loans of up to 20% of a property's value, with deposits starting from 2.5%. 

• More room for side income*: The self-employed Trading Allowance increases from £1,000 to £3,000 from April 2027. 
  *The measures outlined above apply to eligible individuals in the UK and are subject to government eligibility criteria and applicable terms. 

• Support for pensioners: A new targeted tax allowance aims to protect eligible pensioners from paying Income Tax solely because their State Pension has increased. 

What Does This Mean for Your Savings? 

One of the biggest takeaways is that Cash ISAs remain an attractive way to save. 

With the £20,000 annual allowance staying in place and higher taxes on ordinary savings interest coming in April 2027, making the most of your tax-free savings allowance could be more valuable than ever. 

Whether you're saving for a rainy day, a big purchase or your future, it's worth reviewing your savings options to make sure your money is working for you. 

The bottom line: Some welcome relief for household budgets, more support for first-time buyers and a stronger reason to consider tax-free savings. 

For further information, refer to the official government publications: 

• UK Budget 2026 — Full Budget Document 
• Budget 2026 — Tax Legislation and Rates 
• Budget 2026 — Rates and Allowances 
• HMRC — Tax-free Savings Newsletter, October 2026 

Important information: This article provides general information about the UK Autumn Budget 2026 and does not constitute personalised financial, investment or tax advice. Information is based on official government announcements available as at 30 October 2026. Some changes are subject to legislation, implementation arrangements and eligibility requirements. Tax treatment depends on personal circumstances and may change. The measures described do not automatically change iFAST Global Bank products, rates, fees or account conditions.