The government has announced the Budget for 2025. There’s a lot of information, so we’ve simplified it to show what really matters for your household budget - and how IE Hub can help you stay in control.
1. Taxes on wages are staying the same - but more people may pay more
- Income tax and National Insurance rates are not going up.
- But the government is freezing the tax bands for three more years.
- This means as wages rise over time, people might move into a higher tax band and pay more.
What this means for you:
You may notice less money in your take-home pay in future years, even if your tax rate hasn’t changed.
You may notice less money in your take-home pay in future years, even if your tax rate hasn’t changed.
How IE Hub can help:
If your pay feels tighter, you can use IE Hub to update your income, see how much money you have left each month, and share an accurate budget with all your creditors in one go.
If your pay feels tighter, you can use IE Hub to update your income, see how much money you have left each month, and share an accurate budget with all your creditors in one go.
2. Council tax for most homes stays the same
Only very expensive homes (worth over £2 million) will pay more council tax.
What this means for you:
If you live in a typical home, your council tax will not change.
If you live in a typical home, your council tax will not change.
3. Pension changes for higher earners
From 2029, there will be a £2,000 limit on tax-free pension salary-sacrifice.
Most lower-income and middle-income households will not be affected.
4. ISA savings limit is changing
From April 2027, the cash ISA limit will drop from £20,000 to £12,000.
Stocks and shares ISA limits will stay the same.
What this means for you:
If you don’t save large amounts already, this won’t affect you.
If you don’t save large amounts already, this won’t affect you.
5. Energy bills: bills may drop by £150 next year
The government is scrapping the ECO scheme.
They say this will remove £150 from household energy bills next year.
What this means for you:
You may see a small reduction in your bills in 2026.
You may see a small reduction in your bills in 2026.
How IE Hub can help:
Use IE Hub to update your bills, so your budget reflects any savings - or any other changes to your energy costs.
Use IE Hub to update your bills, so your budget reflects any savings - or any other changes to your energy costs.
6. Minimum wage is rising
Minimum wage for 18–20-year-olds will rise from £10 to £10.85.
The living wage (for adults) will rise from £12.21 to £12.71.
What this means for you:
If you are on minimum wage, you should see slightly more in your pay packet.
If you are on minimum wage, you should see slightly more in your pay packet.
7. Price rises on cigarettes, alcohol and sugary drinks
Taxes on tobacco and alcohol continue to rise with inflation.
Sugary drinks like milkshakes and canned coffees will now have a sugar tax.
What this means for you:
Some drinks and smoking products may cost more.
Some drinks and smoking products may cost more.
8. Fuel duty stays frozen (for now)
Fuel duty won’t rise until at least September 2026.
After that, it may increase.
What this means for you:
Fuel prices might stay steady for a while, but could rise later.
Fuel prices might stay steady for a while, but could rise later.
9. Electric vehicle owners will pay a new road duty
New charges will be 3p per mile for electric cars and 1.5p per mile for hybrids.
10. Changes to benefits
The government says 15,000 more people will get back into work through changes to Universal Credit.
Some tax breaks for people on the Motability scheme will end.
The two-child benefit cap is being removed.
What this means for you:
If you have more than two children, you may now receive more child benefit.
If you use Motability, some costs may go up.
If you have more than two children, you may now receive more child benefit.
If you use Motability, some costs may go up.
How IE Hub can help:
If your benefits change, update your income and spending on IE Hub.
Your budget will stay accurate, and you can share it easily with creditors if you need support.
If your benefits change, update your income and spending on IE Hub.
Your budget will stay accurate, and you can share it easily with creditors if you need support.
11. Energy, schools and the NHS: more investment
More money is being put into nurses, GP appointments, and some school services.
12. Gambling duty is rising
Online betting will be taxed more.
This may mean worse odds, fewer bonuses, or higher prices for gamblers.
What this means for you:
If you gamble, it may cost more and some sites may close.
If you gamble, it may cost more and some sites may close.
How IE Hub can help:
If gambling affects your finances, IE Hub can help you get a clear picture of your money and share a budget with creditors. We also work with organisations who support people struggling with gambling.
If gambling affects your finances, IE Hub can help you get a clear picture of your money and share a budget with creditors. We also work with organisations who support people struggling with gambling.
What to do if these changes affect your household budget
Budget changes can feel worrying. But you don’t need to manage the impact alone.
With IE Hub, you can:
- Build a clear budget in minutes
- See exactly what money you have left each month
- Update your bills, benefits, pay or debts at any time
- Share your budget with all your lenders in one click
- Get faster, fairer support - without repeating yourself
If this Budget means your income changes, your bills rise, or you feel under pressure, IE Hub can help you stay in control and get the support you need.
