November Budget 2025
UK Budget - A Few Key Highlights 💼
The Autumn 2025 Budget outlines a range of policy changes affecting earnings, taxation, pensions, savings, and benefits. The following summary highlights some of the key measures announced and when they are scheduled to take effect.
National Minimum Wage Increases 💵
Increases to the National Minimum Wage from April 2026 onward:
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21 and over: £12.71
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18 to 20: £10.85
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16 to 17 and apprentices: £8.00
Tax and Thresholds 📊
The Budget confirms that Income Tax rates and bands, National Insurance rates, VAT, workplace pension relief, and associated thresholds will remain unchanged.
However, Tax-Free Allowances will continue to be frozen, remaining at their current levels for a further 3 years from April 2028 onward.
State Pension Changes
The State Pension is set for an uplift from April 2026, with:
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The basic State Pension increasing by £440 per year
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The new State Pension increasing by £575 per year
Private Pension Changes 💰
Salary sacrifice pension contributions will continue to benefit from income tax relief.
From April 2029, however, contributions above £2,000 per year will incur National Insurance. Employees therefore have several years before the revised cap takes effect, allowing time to plan or adjust contributions as needed.
Setting up a private pension with Nasa remains an option for those looking to review or optimise their arrangements.
✅Setting up a private pension with Nasa
More detailed guidance on these specific changes are expected closer to April 2029.
Savings – Cash ISAs
From April 2027, the annual Cash ISA allowance will reduce from £20,000 to £12,000. Individuals aged 65 and over will not be affected by this change.
This adjustment may encourage savers to consider alternative tax-efficient savings options, including pension contributions, ahead of the 2029 updates.
As part of these changes, the remaining £8,000 of the £20,000 annual ISA limit will continue to be available for Stocks & Shares ISAs or other ISA types.
Greater Support for Families 👨👩👧👦
The Child Benefit cap will be removed from April 2026, allowing parents to claim for a third or subsequent child born after 6 April 2017. This change offers additional financial support to growing families.
Support for Students 👩🎓
The repayment threshold for Student Loan Plan 2 borrowers will be frozen for an additional 3 years from April 2027 onward. The planned threshold for this period is £29,385.
Repayments will continue to be calculated at 9% of income earned above this threshold.
New Mileage Tax on Electric and Hybrid Cars 🚗
From April 2028 onward:
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Electric vehicles will incur a 3p per mile charge
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Hybrid vehicles will incur a 1.5p per mile charge
These payments are expected to be integrated into the existing Vehicle Excise Duty system administered by the DVLA.