Feeling nervy about the autumn 2026 budget? Here’s how to protect your money – according to a financial expert

If you’ve glanced at the headlines this month and felt your stomach drop, you’re not alone. Budget season always arrives with a wall of alarming predictions, and this year, with John Healey delivering his first budget as chancellor on Wednesday 28 October, there are more than usual. So let me do what I do for my clients: cut through the noise and tell you what actually matters for your money.

Here’s the single most useful thing I can teach you about a budget. Everything you read falls into one of three piles. Pile one is already law and is happening whatever gets announced. Pile two is genuinely being decided on the day. And pile three is rumour, leaks and kite-flying to fill the papers beforehand, a lot of which never happens. Once you can sort a headline into the right pile, most of the fear disappears. So let’s go through them together.

What’s already happening (regardless of what the chancellor says)?

Some of the biggest changes to your money next year were decided last year – they’re already law, and they’re coming regardless of next week.

Frozen tax thresholds: the amount you can earn before paying income tax (£12,570) and the point where the 40% rate kicks in (£50,270) are both frozen until April 2031. Nobody has to raise your tax rate: if you get a pay rise, more of your income quietly drifts into tax, and some people edge into the higher rate without their job changing at all. As I say to my clients, nobody raised your tax rate; your pay rise did it for them.

The cash ISA change: from April 2027, if you’re under 65, the most you can put into a cash ISA each year drops from £20,000 to £12,000. Your overall £20,000 ISA allowance isn’t shrinking, but the rest would need to go into a stocks and shares ISA. In plain terms, this tax year and next are the last ones where you can shelter the full £20,000 in cash, so it’s worth making the most of that if you have savings sitting outside an ISA.

A little more tax on savings and rental income: from April 2027, the tax on savings interest and on rental profit goes up by two percentage points. Most people won’t pay tax on their savings thanks to the savings allowance, but if you’ve a decent pot outside an ISA or you rent out a property, it’s one to be aware of.

The full new state pension: this is expected to rise by about 3.9% next April, to roughly £250 a week. We’ll know for certain once this week’s inflation figures land.

Build your plan around what’s law – keep a cool head about the rest

What’s up for grabs on the day? 

These are real decisions coming on the 28th, where we simply don’t yet know which way the chancellor will go.

Petrol and diesel: the 5p-a-litre fuel duty cut is due to unwind, which, as the law stands, means a rise of around 3.6p a litre at the pump in January, or roughly £2 more to fill a typical tank. But with petrol prices already high, The Times and others report a freeze is being considered, and the prime minister has said “every possible measure” is on the table. So this is a genuine live one.

Help with energy bills: the chancellor has promised help, but remember his own words: “targeted and temporary”. The Guardian reports the most likely route is expanding the warm home discount for people on certain benefits. So if you’re on something like universal credit or pension credit, watch this closely. If you’re not, I wouldn’t bank on a cheque.

First-time buyers: the government has sketched out a new scheme, Your First Home, which would let you buy a new build with a 2.5% deposit and a government loan covering 20% of the price. The crucial details, the income limits and price caps will come on the day.

The minimum wage: a new rate for next April is expected around the budget, and another above-inflation rise looks likely (it’s currently £12.71 an hour for over-21s).

The rumours (take these with a big pinch of salt)

Now to the pile that I most want you to handle with care. Everything here is reported, not confirmed, and budgets always come with leaks, some of which is the Treasury quietly testing how we’ll react. So please, don’t make a single big decision off the back of a headline.

The ‘mansion tax’: homes worth over £2 million already face a new annual charge from 2028. The Times reported the chancellor might lower that threshold to £1.5 million, but The Standard has since reported it’s been ruled out. Two papers, two opposite stories, which is exactly why you wait for the 28th rather than panic.

The frozen personal allowance: the prime minister said over the summer it would be “reviewed”, but that’s difficult when money is this tight. Unfreezing it is hugely expensive, so I’d gently manage your expectations there.

Capital gains tax: if you’re selling a second property or shares held outside an ISA, this is worth keeping half an eye on: the Financial Times reports a big rise has been rejected, though the The Telegraph says a smaller one is still possible.

So, the 3 things actually worth doing before 28 October…

If you’re employed, check your tax code. With thresholds frozen until 2031, a pay rise can quietly nudge you into a higher band, and the wrong tax code is far more common than you’d think. Log into your personal tax account or the HMRC app and check it matches your circumstances. It’s a five-minute job that can save, or reclaim, real money.

If you’re a saver, use this year’s ISA allowance. The cash ISA limit for under-65s drops next April, and that’s law, not a rumour. So while you can still shelter the full £20,000 in cash, it’s a good year to make the most of your allowance.

If anything big is in motion, get advice now, not after. If you’re part-way through selling a property or shares, or handing over a business, speak to an adviser before the 28th. Some changes can take effect the moment they’re announced, so the planning you do beforehand is often worth far more than anything you can do afterwards.