Issued by: HM Treasury

This Budget takes the fair choices needed to deliver on the country’s key priorities and takes decisive action to cut the cost of living, bring down inflation and deliver economic stability.

Putting more money in people’s pockets

• This Budget takes levies off energy bills to save families £150 on average next year, and up to £300 for some poorer households.

• The historic decision to remove the two-child limit in full from April 2026 will lift 450,000 children out of poverty -rising to around 550,000 alongside other measures announced this year, such as the expansion of free school meals - the biggest reduction at any Budget this century. This comes after this government has already rolled out free breakfast clubs to half a million more children.

• We are raising the National Living Wage and National Minimum Wage meaning full-time workers on the National Living Wage see a rise of £900 a year, while full-time workers on the 18-20 National Minimum Wage rate will see a £1,500 rise.

• Thanks to our commitment to the pension Triple Lock for this parliament, pensioners on the full new State Pension across the UK are set to receive an extra £575 a year, which they’ll start seeing from April 2026.

• Over three quarters of pensioners in England and Wales will benefit from a Winter Fuel Payment this winter.

• Thanks to the biggest government intervention in over 30 years, we are freezing regulated rail fares in England this year – saving commuters hundreds of pounds off season tickets and easing pressure on household budgets.

• We have extended the freeze on prescription fees for another year, keeping the cost under £10.

• The Universal Credit Standard Allowance for a single person aged 25 or over will increase by around £295 a year, over £110 more than if up-rated by inflation alone. For couples, where one partner is aged 25 or over, it will increase by around £465 a year, approximately £180 more than if up-rated by inflation alone.

Delivering economic stability and driving down inflation

• Inflation is past its peak, and measures announced in this Budget such as bringing down energy bills and freezing rail fares will bring down inflation.

• The OBR has forecast that the Budget will reduce CPI inflation by 0.4 percentage points next year.

• Under our financial stewardship of the economy, the Bank of England has cut interest rates 5 times, and our action to tackle inflation increases the likelihood of further cuts.

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