Budget news can be super confusing. It’s like someone just dumped a mountain of papers on your desk and said, “Good luck figuring this out!” But don’t worry, I’ve sifted through it all to find the bits that really matter for regular folks—things that affect your bills, pay, savings, and daily life. Let’s break it down together in a laid-back way!

1. Tax Thresholds Aren’t Changing (Which Could Mean You Pay More Over Time)

So here’s the scoop: the tax thresholds are frozen until 2031—no increases, which sounds okay at first. But as your income goes up and those thresholds stay put, you might end up shelling out more in taxes. It’s sneaky and gradual, so keep it in mind—no need to panic!

2. Cash ISA Limit is Getting a Trim

If you’re a fan of saving in a cash ISA, listen up! Starting April 2027, the amount you can throw in each year will drop from £20,000 to £12,000. Stocks & shares ISAs are still safe at £20,000 for now. If you’re over 65, don’t worry; you get to keep the full £20,000. Not the end of the world, but if you love a good safe savings spot, it’s smart to max out the current limits while they’re still around. Also, a small tax on savings interest will rise a smidge in 2027, but most people won’t feel it too much.

3. Good News: Energy Bills Are Expected to Dip

Finally, some good vibes! From April 2026, electricity and gas rates are set to drop, which means your energy costs will shrink a bit. The average household could save about £150 a year. Not a fortune, but definitely a nice little break!

4. Pension Tweaks

If you use salary sacrifice for your pension, there’s a tiny chance coming. From 2029, only the first £2,000 of your salary sacrifice will give you that National Insurance benefit. You can still sacrifice more, but you won’t get the NI savings on the extra. Also, while the state pension will keep growing, some retirees might start seeing a bit of tax due to those frozen tax thresholds—just something to keep on your radar.

5. Universal Credit’s Two-Child Limit is Going Bye-Bye

Good news for families on Universal Credit: starting April 2026, you’ll get support for all your kids again, not just the first two. This only applies to Universal Credit, so just a heads-up!

6. Student Loan Repayment Updates

If you’ve got a Plan 2 student loan (that’s most folks who started after 2012), get ready for a slight increase in your repayment threshold next year, which will stick around until 2030-31. As your wages might rise but the threshold stays the same, you might end up paying a little more back over time.

7. First-Time Buyers: Status Quo for Now

The Lifetime ISA property limit of £450,000 isn’t changing just yet. The government’s looking to review things next year, so for now, everything stays the same.

8. A New Charge for Fancy Homes

There’s going to be a new yearly surcharge starting in 2028 for homes valued over £2 million in England. Most people won’t be affected at all, so no worries there!

9. Maybe Fairer Mobile Bills

If you’ve ever opened your mobile bill and thought, “Ugh, not again!”—this might make you smile. There’s a push for mobile companies, especially O2, to tighten up how they hike prices during contracts. Fingers crossed for fewer surprise charges!

10. New Costs for Electric Vehicles

From April 2028, if you roll with an electric car, you’ll start paying 3p per mile. For plug-in hybrids, it’ll be 1.5p per mile. Details on how they’ll track that mileage are still to come.

11. Everyday Essentials

Some freezes are on the way for bus fares (in England), rail fares, prescription charges, and fuel duty. But watch out for rises in alcohol and cigarette duties.

Final Thoughts — Stay Informed!

Budgets can feel like a total maze, but once you break down the key points, it’s easier to see what’s really worth paying attention to. Here’s the quick recap:

- You might end up paying a bit more tax over time.

- Cash ISA limits are dropping.

- Energy bills should be going down.

- Some pension and student loan rules are shifting.

- Everyday travel and prescription costs are stable for now.

If you ever want to chat about how these changes could impact your personal finances or bookkeeping, contact Balanced Books by Bernie. I'm here to help!