What the budget means for your money - all in one place

Savers, drivers and pensioners were among those at the centre of Wednesday's key budget announcements.

Chancellor John Healey delivered what he branded a "budget for the working people" to Parliament, while maintaining that "fiscal discipline" was his "first commitment".

He had £15bn projected headroom in 2029-30 to play with, according to the Office for Budget Responsibility. This is how it played out.

Rabbit out of the hat

Households in council tax bands A - D will receive a £100 energy payment directly in their bank accounts this winter, Healey said.

That's 20 million homes in England, costing £2.6bn. Scotland, Wales and Northern Ireland will receive funding, but devolved governments get to decide for themselves how to spend it.

It was the rabbit-out-of-the-hat moment that accompanied other energy relief, including abolishing gas bill standing charges from next year.

Similar reforms will follow for electricity, Healey pledged. For now, electricity users will have to do with a VAT cut extension to July 2027, cutting £50 off the annual price cap.

Reaction was mixed. Standing charges disproportionately affect smaller houses, single people and those trying to reduce their usage, but a higher unit cost potentially has unintended consequences for energy-hungry businesses or poorly insulated homes.

Either way, after a short time in the spotlight, this particular rabbit was soon in the headlights of a new energy price cap hike bearing down from January.

EDF said it expects the cap to rise by £466 to £2,189 in the New Year, and then again in April to £2,374.

Pensioners saved from tax cliff edge

A remedy was announced to address the state pension surpassing the tax-free personal allowance threshold of £12,570 in April.

The new Pension Tax Allowance today means pensioners with incomes at or under the value of the full new state pension, £13,037, will not be brought into paying tax because of uprating in this Parliament.

Nor will there be a cliff edge, with the tax break withdrawn in a tapered manner until full income tax is paid on income over £13,319.

The 25% tax-free lump sum pension withdrawal remains unchanged, and the triple lock remains secured until 2030, when it will be adjusted to rise each year by the highest of 2.5%, inflation, or the amount required to maintain its value relative to earnings in April 2029.

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Reeves' 'car crash' averted

Today marked the death of plans proposed by former chancellor Rachel Reeves to slash the annual tax-free ISA allowance from £20,000 to £12,000.

Scrapping the plans, which had aimed to persuade Britons to invest more in stocks and shares, was "great news" for savers, according to some experts.

"Rachel Reeves's ISA reforms were a car crash, lamented by most of the retail investment industry, who criticised the complexity they would add for little consumer benefit, and building societies, who warned they would increase mortgage costs," said Tom Selby, director of public policy at AJ Bell.

Housing

There was two-pronged support for people saving for their first home announced by Healey.

A new first-time buyer ISA will replace the Lifetime ISA, while the LISA's withdrawal penalty will be ditched.

Polly Gilbert, a mortgage and savings expert at Tembo, said their customers had reported paying penalties worth £656 on average.

Then there was the Your First Home scheme, providing a 20% government-backed equity loan to first-time buyers who have saved a 2.5% deposit, reducing the amount they need to borrow to 77.5% of the purchase price.

Healey also confirmed £430m to support rough sleepers and committed an additional £1.5bn to build more council homes.

Who else will be impacted?

Those were the big-ticket items, but the chancellor made a number of other changes that will impact people's wallets.

Workers

The minimum wage will rise by an inflation-busting 3.9% for both workers aged 18 to 20 years old and those aged 21 and over, the chancellor announced.

But the discrepancy in minimum rates offered by age will remain the same size - something Labour previously called "discriminatory".

Drivers

As expected, the 5p fuel duty cut has been extended until July 2027. The chancellor also confirmed that workers using their car to get to work can be reimbursed a greater amount by their employers tax-free.

Healey made permanent a 55p per-mile rate for the first 10,000 business miles, and increased the rate for any extra miles from 25p to 35p.

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Carers

A benefits rule that punished unpaid carers for earning too much will be abolished. Until now, if they earned any amount above the threshold set by means-testing (£204 a week), they lost the whole carer's allowance.

Parents

Self-employed dads and same-sex partners will be eligible for two weeks' support worth up to £194 a week.

Businesses

That covers much of the spending - now comes the taxing. Businesses of various types were on the hook to pay for putting money back in the pockets of consumers.

Banks will pay an extra 3% surcharge on profits to pay for energy bills relief, taking the total levy to 6% for 15 months from January.

Meanwhile, the duty on gambling machine takings will rise from 20% to 25%

This will help pay for relief to the hospitality, retail and leisure industries. The threshold for small business rate relief will increase from £12,000 to £18,000 for retail, hospitality and leisure.

"That means half of our shops, restaurants and gyms pay no business rates at all," Healey said.

Moreover, a £10m alcohol duty relief will be provided for around 2,000 small British brewers and cider makers.

Founders of successful companies would also benefit from a 10% tax rate relief on capital gains up to £10m.

Private landlords will be less pleased, facing an increase of two percentage points on rental income. From 2027 to 2028, the property basic rate will be 24%, the property higher rate will be 44%, and the property additional rate will be 49%

Heather Powell, a partner at accountancy firm Blick Rothenberg, called it "the final nail in the coffin".

"Landlords will be looking to sell up and invest their money elsewhere," said Powell.

(c) Sky News 2026: What the budget means for your money - all in one place