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Autumn Budget 2026: What you need to know

Key takeaways from John Healey’s 2026 Autumn Budget.

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MoneyPlus Features Team

October 28, 2026

3 minutes

On 28 October, Chancellor John Healey delivered his first Autumn Budget.

While there were no major pension-related changes, here are some of our key takeaways.

State Pension increase

The full new State Pension will increase by 3.9% in April 2027 from £241.30 to around £250.70 a week, or just over £13,000 a year.

For pensioners aged 75 and over who are on the older basic State Pension, they’ll see a weekly increase from £184.90 up to £192.10, or just under £10,000 a year.

New Pension Tax Allowance

If the State Pension is your only income, the government is introducing a new Pension Tax Allowance. This means you won’t have to pay Income Tax on it between 6 April 2027 and 5 April 2030.

If you have other income that takes you slightly above the value of the full new State Pension, the amount of allowance you receive will gradually reduce.

Triple Lock to change from 2030

The Government also re-confirmed its planned changes to the triple lock from April 2030. The triple lock determines how much the State Pension increases each year.

From April 2030, the basic State Pension and the full rate of the new State Pension will increase by the highest of:

  • Inflation, as measured by the consumer price index
  • 2.5%
  • The amount needed to make sure the State Pension keeps pace with earnings

The change is designed to keep the State Pension broadly in line with average earnings over time, rather than allowing it to grow faster than wages.

Cash ISA allowance to stay at £20,000

An Individual Savings Account (ISA) is an account that people can use to save and/or invest.

In last year’s Budget, the government announced plans to reduce the annual Cash ISA allowance (that’s how much you can pay in across a tax year) from £20,000 to £12,000 for under-65s from April 2027.

That change will no longer go ahead, so people of all ages will continue to be able to save up to £20,000 a year into a Cash ISA.

Final thoughts

While it’s always worth understanding what these changes could mean for you, keeping your longer-term goals in mind can help you stay focused on the retirement you want.

The information here is based on our understanding in October 2026 and shouldn’t be taken as financial advice.

Your own personal circumstances, including where you live in the UK, will have an impact on the tax you pay. Laws and tax rules may change in the future.