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The Budget
Spring Forecast
On 03 March, we heard from the Chancellor, Rachel Reeves, outlining the government's 2026 Spring Forecast. The focus was the outlook for inflation, growth and government borrowing. There were no big policy updates from the 2025 Autumn Budget, but some of the changes announced in November will come into effect from 06 April, so it’s worth a recap of what’s happening when.
The information on this page is right as of 03 March 2026. It gives an overview of what’s been said that may impact how you manage your money. It doesn’t cover all announcements made in the Spring Forecast or 2025 Budget.
Income and employment
From 06 April 2026
There are no changes to Income Tax and National Insurance thresholds. They are set to remain at current levels until April 2031.
The minimum wage will increase, rising to £12.71 an hour for over-21s. This is worth £1,040 a year for a 40-hour week. For 18 to 20-year olds it is rising to £10.85 an hour, and for under-18s and apprentices it is rising to £8.00 an hour.
Income and employment
From 06 April 2026
There are no changes to Income Tax and National Insurance thresholds. They are set to remain at current levels until April 2031.
The minimum wage will increase, rising to £12.71 an hour for over-21s. This is worth £1,040 a year for a 40-hour week. For 18 to 20-year olds it is rising to £10.85 an hour, and for under-18s and apprentices it is rising to £8.00 an hour.
Savings and investments
From 06 April 2026
There are no changes to the Individual Saving Account (ISA) system or allowances.
Rates of Income Tax applicable to dividend income are changing. The basic rate will increase by 2% to 10.75% and the higher rate will increase by 2% to 35.75%. The additional rate will remain unchanged at 39.35%.
From 06 April 2027
The ISA system is being reformed. The overall ISA allowance of £20,000 will remain the same, but the amount you can save into a Cash ISA is changing.
Rates of Income Tax applicable to savings income are increasing by 2%. The savings basic rate will increase to 22%, the savings higher rate will increase to 42% and the savings additional rate will increase to 47%.
Savings and investments
From 06 April 2026
There are no changes to the Individual Saving Account (ISA) system or allowances.
Rates of Income Tax applicable to dividend income are changing. The basic rate will increase by 2% to 10.75% and the higher rate will increase by 2% to 35.75%. The additional rate will remain unchanged at 39.35%.
From 06 April 2027
The ISA system is being reformed. The overall ISA allowance of £20,000 will remain the same, but the amount you can save into a Cash ISA is changing.
Rates of Income Tax applicable to savings income are increasing by 2%. The savings basic rate will increase to 22%, the savings higher rate will increase to 42% and the savings additional rate will increase to 47%.
Pensions
From 06 April 2026
The State Pension will rise by 4.8% in line with average wages. This takes it to £241.30 a week or £12,500 a year.
From 06 April 2029
Salary Sacrifice rules for pension contributions are changing. Pension contributions above £2,000 a year made by salary sacrifice will be subject to National Insurance Contributions (NICs) for both employers and employees.
Pensions
From 06 April 2026
The State Pension will rise by 4.8% in line with average wages. This takes it to £241.30 a week or £12,500 a year.
From 06 April 2029
Salary Sacrifice rules for pension contributions are changing. Pension contributions above £2,000 a year made by salary sacrifice will be subject to National Insurance Contributions (NICs) for both employers and employees.
Inheritance
From 06 April 2026
There is no change to Inheritance Tax thresholds. These are due to stay the same until April 2031.
From 06 April 2027
Unused pension funds and death benefits will form part of the Inheritance Tax liability.
Inheritance
From 06 April 2026
There is no change to Inheritance Tax thresholds. These are due to stay the same until April 2031.
From 06 April 2027
Unused pension funds and death benefits will form part of the Inheritance Tax liability.
Homes and property
From 06 April 2026
The government will implement measures to help reduce household energy bills, amounting to £150 on average from a typical household bill.
From 06 April 2027
Separate tax rates for property income (affecting landlords) will be created. The property basic rate will be 22%, the property higher rate will be 42%, and the property additional rate will be 47%. These rates will apply across England, Wales and Northern Ireland.
From 06 April 2028
A new High Value Council Tax Surcharge on owners of residential properties valued at over £2 million in England will be introduced. The levy will be an annual £2,500 charge, rising to £7,500 for properties worth more than £5 million.
Homes and property
From 06 April 2026
The government will implement measures to help reduce household energy bills, amounting to £150 on average from a typical household bill.
From 06 April 2027
Separate tax rates for property income (affecting landlords) will be created. The property basic rate will be 22%, the property higher rate will be 42%, and the property additional rate will be 47%. These rates will apply across England, Wales and Northern Ireland.
From 06 April 2028
A new High Value Council Tax Surcharge on owners of residential properties valued at over £2 million in England will be introduced. The levy will be an annual £2,500 charge, rising to £7,500 for properties worth more than £5 million.
Travel
From 06 April 2026
Fuel duty will be frozen at its current discounted rate until September 2026. From then, the current discount of 5p will be gradually reversed in stages up until March 2027.
Regulated rail fares will remain unchanged until March 2027 in England.
Motability scheme tax reliefs are being reformed from July 2026.
From 06 April 2027
All rates of Air Passenger Duty will increase in line with the Retail Prices Index (RPI).
From 06 April 2028
A new Electric Vehicle Excise Duty will be introduced at 3p a mile for battery electric cars and 1.5p a mile for plug-in hybrids.
Travel
From 06 April 2026
Fuel duty will be frozen at its current discounted rate until September 2026. From then, the current discount of 5p will be gradually reversed in stages up until March 2027.
Regulated rail fares will remain unchanged until March 2027 in England.
Motability scheme tax reliefs are being reformed from July 2026.
From 06 April 2027
All rates of Air Passenger Duty will increase in line with the Retail Prices Index (RPI).
From 06 April 2028
A new Electric Vehicle Excise Duty will be introduced at 3p a mile for battery electric cars and 1.5p a mile for plug-in hybrids.
Health and childcare
From 06 April 2026
NHS prescriptions in England will remain at the same level of £9.90.
The 30 hours of childcare introduced in September 2025 will continue for some working parents whose children are at least 9 months old.
Health and childcare
From 06 April 2026
NHS prescriptions in England will remain at the same level of £9.90.
The 30 hours of childcare introduced in September 2025 will continue for some working parents whose children are at least 9 months old.
Benefits
From 06 April 2026
The 2-child benefit cap, which applies to those receiving means-tested benefits, will be lifted.
Young people aged 18 to 21 claiming universal credit who have been out of work or education for 18 months will be offered a guaranteed paid work placement.
Benefits
From 06 April 2026
The 2-child benefit cap, which applies to those receiving means-tested benefits, will be lifted.
Young people aged 18 to 21 claiming universal credit who have been out of work or education for 18 months will be offered a guaranteed paid work placement.
Student loans
From 06 April 2026
The income thresholds for repayment and interest rates for Plan 2 student loans are changing. The lower interest rate threshold will rise from £28,470 to £29,385. The higher interest rate threshold will rise from £51,245 to £52,885.
The interest rate on Plan 2 loans is linked to the RPI rate of inflation and is between 3.2% and 6.2%, dependent on income. Find out more about how much you will repay on the government website.
From 06 April 2027
The Plan 2 student loan income thresholds for repayment and interest rates will remain frozen for 3 years.
Student loans
From 06 April 2026
The income thresholds for repayment and interest rates for Plan 2 student loans are changing. The lower interest rate threshold will rise from £28,470 to £29,385. The higher interest rate threshold will rise from £51,245 to £52,885.
The interest rate on Plan 2 loans is linked to the RPI rate of inflation and is between 3.2% and 6.2%, dependent on income. Find out more about how much you will repay on the government website.
From 06 April 2027
The Plan 2 student loan income thresholds for repayment and interest rates will remain frozen for 3 years.
Find full details of the 2026 Spring Forecast on the government website.
Find full details of the 2025 Budget on the government website.
Important legal information
Important information - this page isn't personal advice and does not cover all announcements made in the Spring Forecast 2026 or Budget 2025. If you would like to discuss any of the topics covered here, including what is the best course of action for your individual circumstances, contact your financial adviser. If you don’t have an adviser you can find one at www.unbiased.co.uk An adviser will normally charge for advice.
Tax treatment depends on individual circumstances and may change in the future.
The value of investments, and the income from them, can fall as well as rise and you may get back less than you invest. Investing for 5 or more years helps reduce the impact of market changes over time.