Confused by the Autumn Budget? Our experts tell you what you need to know

Alex Sitaras, Head of Savings & Partnership Products
Gareth Smith, Senior Retirement Planning Lead
Jen Lloyd, Head of Mortgage Products and Proposition
28 November 2025

Well, that was some build-up. We’ve had months of rumours, predictions and worries about the Autumn Budget. But at least that’s over and chancellor Rachel Reeves has told us her plans.

Let’s walk through the key Autumn Budget money points together.

1) The ISA allowance is changing for adults under 65

• Right now, every UK adult has a £20,000 ISA allowance. You can use it to save into a Cash ISA, invest in a Stocks and Shares ISA, or a bit of both.
• From April 2027, the Cash ISA allowance is going down to £12,000 for adults under 65.
• It’s the lowest amount you can save tax-free since 2014 – and it’s all part of a Government push to get more people to invest instead.

If you’re 65 or over by April 2027, you can still put £20,000 a year into a Cash ISA. So that’s good news for older savers. Welcome too – our pre-Budget survey of UK adults found 74% of over-65s were worried about changes to Cash ISAs*.

But what if you’re under 65?

Our savings expert Alex Sitaras, Head of Savings and Partnership Products explains, “It’s important not to let the tax tail wag the investment dog - people need to be comfortable with risks involved and shouldn’t feel pushed into investing simply because the Cash ISA cap is falling.

“What matters most is choosing the right approach for your circumstances, whether that’s cash, investments, or a blend of both.”

The good news? You still have this tax year and the next one to make the most of having a £20,000 Cash ISA allowance.

* November 2025 research of 187 UK adults over 65-years-old.

2) Income tax thresholds are staying the same for an extra three years

• Tax bands in England and Northern Ireland will stay the same until 2031.
• They were supposed to start rising from 2028.
• Scotland and Wales has its own rates on income and property tax.

Why does extending the freeze matter? Well, if your pay goes up in the next few years, there’s a good chance the taxman will take a bigger slice. That’s because you could end up in a higher tax band. And all this when the cost of living is still such a headache…

If you ultimately want to keep more of your overall money, tax-efficient planning suddenly matters a lot more.

Alex continues, “There are still plenty of smart, tax-efficient options available – the key is understanding which ones genuinely fit your goals.”

3) Your work pension might feel the impact of salary sacrifice changes

• Some, but not all, organisations offer pension salary sacrifice schemes to their workers.
• You give up part of your salary and your employer pays the same amount into your pension. It means you (and your employer) don’t pay national insurance on this part of your income.
• It’s a great way to pay less tax and boost your pension.

From April 2029, the Government is adding a £2,000 a year salary sacrifice cap. You can still put more than £2,000 in your pension, but you and your employer will pay national insurance contributions on anything above this cap.

There’s a lot of finer details to sort here. But as our Senior Retirement Planning Lead Gareth Smith says, this is something to keep an eye on in the future, “This will in effect increase the cost burden on employers. And it may impact companies’ considerations on pay increases to their employees due to the increased costs.”

4) Lifetime ISA changes are coming

• The Government will run a consultation on Lifetime ISAs (LISAs) in early 2026.
• It’s likely we’ll see the LISA replaced with something new.
• A LISA is a way of saving towards a first home or retirement.

Our Head of Mortgage Products and Proposition, Jen Lloyd, is taking a keen interest on what this means for our members. “Skipton Building Society was the first UK provider to offer a Cash LISA and today remains one of the largest, with over 160,000 LISA savers.

“We hope that the Government’s consultation on a new ISA for first-time buyers builds on this success and works with providers to design a product that goes further, helping even more people take their first step onto the housing ladder.

“We look forward to sharing Skipton’s unique insights on how the LISA has been used and the successes it has delivered as we help shape its future replacement.”

If you have a LISA, it’s best to keep calm and carry on! Rest assured: we’ll let you know as and when things change.

5) Little change for homeowners, but lower rates could be on the horizon

It was a pretty quiet Budget for changes that might impact owning a home. But there are some changes coming into effect from 2028.

• If your home is worth more than £2 million and you live in England, you will have to pay an extra council tax of at least £2,500 a year.
• The income tax you pay on any income from property you own will go up by 2% in the England and Northern Ireland.
• Scotland and Wales are able to decide different rates if they wish to - we are waiting for further detail on what they do.

For most homeowners, it’s pretty much business as usual. The Office for Budget Responsibility is forecasting the Autumn Budget will encourage lower interest rates . So there might be good news in the near future when it comes to arranging your next mortgage deal.

The Autumn Budget also forecasts our energy bills will fall by an average of £150 a year from April 2027 – a prospect that can warm hearts on these chilly Autumn nights.

6) A helping hand towards building a stronger financial future – and it’s completely free!

Budgets can stir up lots of emotions. But now we know what’s changing and what isn’t, this is a great moment to review your financial plans.

At Skipton, you can get free money advice. It’s called a My Money Review. And it’s a friendly chat where you can discuss your finances, ask questions – and get personal recommendations.

And did we mention it’s free?