Easy News: Budget

Some people who receive Personal Independence Payment (PIP) will have their payments reviewed less often from April 2026.

The Department of Work and Pensions will do more Work Capability Assessments. This means disabled people on Universal Credit will have their award assessed more often.

The Government will offer more employment support to disabled people who are not in work and receive unemployment benefits.

Some makes of cars will no longer be available through the Motability Scheme. This includes makes like BMW and Mercedes.

The Motability Scheme rents cars to disabled people at a cheaper rate than normal. Many disabled people say this change will make it harder for them to find vehicles that will meet their accessibility needs.

Other changes to the Motability Scheme made in the Budget will make the price some people pay go up.

The minimum wage for people over 21 is rising from £12.21 to £12.71 per hour. For people aged 18 to 20, it is rising from £10 to £10.85.

Training for apprentices aged 24 or less will be free for small and medium-sized companies.

People who are between 18 and 21 years old who are on Universal Credit may be made to take 6-month paid work placements.

After 18 months, if they are not in job or school, they will be offered a placement. If they do not take it, their Universal Credit will be stopped.

The 2-child benefit cap will be removed in April. This was a limit that meant families could only receive Universal Credit or Child Tax Credits for up to 2 children.

The National Insurance and Income tax thresholds will stay the same until 2031.

National Insurance is Government tax on the money people are paid for the work they do and is paid by both workers and employers.

It pays for state benefits, including pensions, the NHS and unemployment benefits.

Income tax is a tax on the money people are paid for the work they do, as well as the money they make from savings or dividends.

Dividends are payments made by companies to people who own parts of the company through things called shares.

People who get paid more for the work they do will pay more tax than people who are paid less.

Keeping the tax thresholds the same for 3 years means that people in 2028 will be taxed based on what their money was worth in 2025.

But because inflation means the prices people pay for things goes up over time, this change could actually mean people will have less money to spend.

In England, people whose house is worth £2million or more will have to pay extra in Council Tax.

This is a tax charged on homes by local councils to fund local services, such as schools, police, outside areas and rubbish collections.

From April 2028, there will be a new tax for electric cars based on how far they drive, at around 3 pence per mile.

The amount of money people under 65 can put into a cash ISA will be limited to £12,000 a year from April 2027.

An ISA is a type of bank account where the bank can invest the money and pays you interest on it. ISA stands for Individual Saving Account.

State pension payments will go up by 4.8% on April, more than the rate of inflation. A state pension is money paid by the Government every 4 weeks to people over 66 years old.

The Help to Save scheme, which helps people on Universal Credit to save money, will be offered to more people after 2027.

Train ticket prices will stay at the same price. With inflation, this means they will become cheaper.

Green Levies will be taken off energy bills. This means people will be taxed less on the energy they use to heat their home, by around £88. Green Levies are taxes put on products that are bad for the environment.