28/11/2025
UK Budget Breakdown — simple, fast, no politics. Here’s what actually affects your pocket. 💷👇
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🟩 Minimum Wage (from April 2026)
• Over 21s → £12.71
• Age 18–20 → £10.85
• 16–17 & Apprentices → £8.00
More money for lower-paid workers, but employers will be adjusting budgets around this.
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1️⃣ Tax thresholds frozen until 2031 — fiscal drag
This is the stealth tax no one sees.
Your income rises… tax bands don’t… so more of your wage slides into tax.
You pay more tax even though the tax rate hasn’t changed.
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2️⃣ Cash ISA limit cut to £12k (from 2027)
You can still put £20k into ISAs each year but:
• Only £12k can be cash
• The remaining £8k must be investments
Over-65s keep the full cash allowance.
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3️⃣ Energy bills expected to fall ~£150 (from 2026)
Some green levies are being moved into general taxation.
This reduces the unit price — meaning typical households save around £150 a year.
Actual savings depend on usage.
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4️⃣ State Pension rising to £12,547 (2026)
Great news — but here comes fiscal drag again.
The pension sits just £23 below the tax threshold, which is frozen.
By around 2027, the full State Pension is likely to become taxable.
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5️⃣ Two-child limit scrapped (from 2026)
Families on Universal Credit with 3 or more children will finally receive support for each child again.
This does not affect Child Benefit or the overall benefit cap.
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6️⃣ Student Loan threshold frozen (Plan 2)
From 2027 the repayment threshold freezes.
Your salary rises… threshold doesn’t…
Meaning fiscal drag increases your repayments over time.
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7️⃣ New surcharge on £2m+ properties (from 2028)
Extra yearly charges on top of council tax:
• £2m–£2.5m → £2,500
• £2.5m–£3.5m → £3,500
• £3.5m–£5m → £5,000
• £5m+ → £7,500
Based on current value, not purchase price.
Paid by the owner, not the tenant.
Increases with inflation from 2029.
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8️⃣ EV pay-per-mile charge (from 2028)
• Electric cars → ~3p per mile
• Plug-in hybrids → ~1.5p per mile
EVs stay cheaper than petrol but the gap tightens.
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