Autumn Budget 2026: What It Means for Your Money - True Advice Financial Services

On Wednesday 28 October 2026, John Healey presented his first Budget as Chancellor. Its measures covered energy and fuel bills, support for people buying their first home, and increased taxes on rental income and savings interest. April 2027 is when the bulk of the changes take effect.

We’ve summarised here the measures our clients are most likely to notice, along with the practical impact of each.

Your 30-second Budget summary

Cash ISAs: the yearly limit remains £20,000. Plans to lower it to £12,000 for those under 65 have been abandoned.
Savings tax: interest earned on savings held outside an ISA will be taxed at 24%, 44% or 49% from April 2027, according to which band you fall in.
First-time buyers: under a new scheme, eligible purchasers in England will be able to put down a 2.5% deposit on a newly built home.
Pensions: anyone whose only income is the State Pension won’t be charged Income Tax on it, thanks to a new allowance.
Household bills: many households will get £100 off energy costs, and reductions to fuel duty and to VAT on electricity will last longer.
Landlords: rental profits will be taxed more heavily from April 2027.
Income tax: with thresholds frozen up to 2030/31, a greater share of your earnings will be taxed as your pay goes up.

1. First-time buyers

The main news on housing concerned further details about Your First Home. Government funding of £4.7 billion has been allocated, with roughly 70,000 first-time buyer households in England expected to benefit.

Those who qualify can purchase a newly constructed property from an approved developer by putting down 2.5%. An equity loan from the Government will cover as much as 20% of the purchase price, with no interest charged during its initial five years. Because this borrowing ultimately requires repayment, you should know how that amount is calculated before committing.

Applications should begin in February 2027. Income per household cannot exceed £110,000, or £140,000 within London. Local price limits differ, reaching £650,000 in inner London.

Two savings changes also affect new buyers:

April 2029 will bring the First Time Buyer ISA, offering a government top-up of 25% when as much as £4,000 is saved annually. In time, this account will take the place of the Lifetime ISA.
Beginning 29 October 2026, buying an initial home priced beyond the £450,000 ceiling through a Lifetime ISA incurs a 20% withdrawal charge instead of 25%. Effectively, your contributions and any interest are returned, while the bonus is not.

How this affects you

Anyone putting money aside for an initial property purchase will have additional choices. However, reducing the deposit does not necessarily make mortgage payments affordable, and conditions apply to these programmes. An adviser on mortgages can explain your borrowing capacity, calculate the total expense of purchasing and assess whether one of these options fits your circumstances.

2. Savings and ISAs

Savers can still put up to £20,000 a year into a Cash ISA, as last year’s proposal to lower the allowance to £12,000 for individuals under 65 has been dropped. Additionally, the Government intends to consult on introducing an incentive for anyone investing for the first time in a stocks and shares ISA.

From 6 April 2027, the tax on savings interest above your Personal Savings Allowance rises by four percentage points:

Tax band	Personal Savings Allowance	Rate now	Rate from April 2027
Basic rate	£1,000	20%	24%
Higher rate	£500	40%	44%
Additional rate	£0	45%	49%

What this means for you

For anyone holding large sums of cash outside an ISA, reviewing the interest earned and where it is deposited makes good financial sense. Making use of your ISA allowance annually provides the most straightforward method to keep your interest tax-free.

3. Pensions

Come April 2027 the full new State Pension will exceed the £12,570 Personal Allowance for the first occasion. To prevent those whose only income is the State Pension from incurring tax, a separate Pension Tax Allowance begins on 6 April 2027. It can be worth around £94 annually, is applied automatically by HMRC, and gradually reduces once income rises modestly beyond the full State Pension level.

The triple lock policy remains active for the current Parliament. Ministers intend to revise its operation once the next Parliament starts.

An earlier decision continues unchanged. Starting April 2029 any pension contributions routed through salary sacrifice that exceed £2,000 per year will incur National Insurance charges.

What this means for you

Should you receive a workplace or personal pension in addition to the State Pension, the new allowance is unlikely to deliver significant benefit. Those employing salary sacrifice should examine contribution methods ahead of the 2029 adjustment.

4. Mortgages

Home loan pricing is never directly decided by the Budget, and stamp duty was left completely unaltered. However, financial institutions adjust their products according to inflation and shifting rate expectations, ensuring broader economic conditions continue dictating available terms.

How this affects you

Should your existing fixed-rate arrangement expire between six and twelve months from now, begin exploring alternative options promptly rather than waiting until the deal concludes. A qualified mortgage adviser can evaluate products across the wider market, outline potential shifts in monthly repayments, and help determine whether remortgaging elsewhere or remaining with your current lender makes sense.

5. Household bills

Several steps addressing routine expenses were announced by the Chancellor:

Household Energy Payment of £100: from January 2027, this goes to English households whose council tax property falls within bands A–D. It should be received without action when council tax is collected through Direct Debit.
Electricity VAT: its reduced rate continues until 1 July 2027.
Duty on fuel: the 5p reduction also remains until 1 July 2027.
Standing charges for gas: these will be abolished, with the aim of doing so by the end of 2027 or as soon as possible after, and their cost transferred to usage rates.
National Living Wage: hourly pay increases to £13.21 beginning in April 2027.

By contrast, thresholds for income tax remain fixed through 2030/31. Wage growth will therefore leave a greater proportion taxable and shift certain people into higher bands.

How this affects you

Although these steps should ease some winter costs, the majority will not last. Reviewing both your domestic budget and plans over the longer term remains worthwhile.

6. Property landlords and enterprise owners

Tax on rental profits will go up from April 2027, matching the new savings tax rates of 24%, 44% or 49% according to your band.

Business owners will see the lifetime cap on Business Asset Disposal Relief cut in half, from £1 million to £500,000, from April 2027. Eligible founders will be able to claim a new Founders’ Relief, giving a Capital Gains Tax rate of 10% on lifetime gains of up to £10 million.

The impact on you

If you’re considering selling a business or rental property, when you do it could significantly affect how much tax you owe. Get professional advice before deciding.

Next steps

The Budget is a useful reminder to make sure your plans are still fit for purpose. Here are five areas to review:

Are you making full use of your ISA limit, particularly when holding savings that generate taxable interest?
When a fixed mortgage deal expires during the coming year, have you decided on your next step?
When purchasing your first residence, might the Your First Home scheme or a Lifetime ISA prove useful?
Are your pension payments and retirement goals heading the right way?
If illness or death brought your earnings to an end, could your household manage financially?

Get in touch with us

True Advice Financial Services has offered guidance to people throughout East Grinstead, Sussex, London and the South East from 1983 onwards. As an independent firm we reach every provider available, and give recommendations covering mortgages, pensions, savings, investments plus protection.

If you’d like to know how the Budget affects you, book a free, no-obligation initial consultation. Call 01342 324 171 or contact us online.

Important information: this article is for general information only and is based on announcements made in the Autumn Budget on 28 October 2026. Some measures are subject to legislation and further eligibility criteria. It does not constitute personalised financial or tax advice. Tax treatment depends on individual circumstances and may change. Investments and the income from them can fall as well as rise, and you may get back less than you invested.

Your home may be repossessed if you do not keep up repayments on your mortgage.

True Advice Financial Services is a trading style of TA and SE Hollom Ltd (FCA 461206), an Appointed Representative of New Leaf Distribution Ltd, which is authorised and regulated by the Financial Conduct Authority (FCA 460421).

Ashley Hollom

Senior Mortgage and Insurance Advisor at True Advice Financial Services

Ashley Hollom is a Senior Mortgage and Insurance Advisor at True Advice Financial Services. With a comprehensive approach to advising, Ashley specializes in providing clients with tailored solutions across the entire market, free from ties to specific lenders or insurers.
He holds a CeMAP qualification and has been advising since 2018, continually updating his expertise through ongoing training. Ashley's client-focused approach ensures personalized, effective advice, fostering long-term relationships. Outside of work, he enjoys playing football and exploring new countries. For personalized financial advice, Ashley is dedicated to helping clients achieve their goals.