Chancellor Unveils Budget for Household 'Breathing Space'

Households in council tax bands A to D will receive a £100 payment. Next year, standing charges on gas bills will cease, removing a consistent cost for consumers.

The state pension will increase to £13,036 in April. The National Living Wage for workers aged 21 and over rises by 3.9 percent, reaching £13.21 an hour.

First-time buyers gain access to the 'Your First Home' scheme, which supports new-build property purchases with a 2.5 percent deposit. A new savings product, the First-Time Buyer ISA, becomes available from April 2029.

Paternity pay extends to self-employed fathers and partners, allowing claims of £194.32 a week for up to two weeks. The tax-free earnings limit for 'side hustle' jobs triples from £1,000 to £3,000.

However, not all measures reduce costs. Landlords face a 2 percent rise in income tax on rent. Savers with funds in non-ISA accounts will see a 4 percent income tax hike on interest earned above their Personal Savings Allowance from 2027, with income tax rates on savings income increasing by two percentage points.

The Chancellor abandoned plans to cut the cash ISA allowance from £20,000 to £12,000 for under-65s. Personal tax thresholds remain frozen at their 2021 levels until April 2031.

Import tariffs on foods including baked beans, gherkins, and garlic have been cut. The temporary 5p cut in fuel duties, introduced in 2022, extends to July 2027, and VAT on household electricity remains at zero until July 2027.

Carer's Allowance will no longer be entirely removed if earnings exceed the weekly limit, a change effective from 2030. The government also pledged £100 million to reduce cost burdens for electric vehicle owners without home chargers.

The energy price cap is projected to rise, with annual bills for a typical household potentially increasing from £1,723 to £2,188. The income at which graduates must start making student loan repayments will freeze for three years.

The Budget included 31 tax cuts and 21 tax rises.