The 2026 Spring Budget has landed. Delivered against a backdrop of slowing growth, persistent inflation pressures, and a public still reeling from the cost of living crisis, the Chancellor faced the impossible task of satisfying everyone while pleasing no one.
n
The Key Changes at a Glance
n
Income tax thresholds remain frozen until 2028 — meaning millions of workers will continue to be dragged into higher tax bands as wages rise. The personal allowance stays at £12,570 and the higher rate threshold at £50,270.
n
National Insurance contributions for employees were cut by half a percentage point, from 8% to 7.5%, offering modest relief worth around £150 per year for the average worker. For a household with two working adults both earning around the median wage, that's roughly £300 back annually.
n
Benefits and Welfare
n
The benefit cap was uprated by 3.2%, roughly in line with inflation. Universal Credit standard allowances received the same uplift. Disability benefits — the subject of considerable pre-Budget speculation — were protected in cash terms, though critics argue inflation-linked increases fall short of genuine protection.
n
Child Benefit has been extended to cover 16-19 year olds in approved education or training for the first time, reversing a decade-long policy that left hundreds of thousands of families worse off when children remained in full-time education.
n
Housing
n
The stamp duty threshold for first-time buyers was raised from £425,000 to £450,000, reflecting house price growth since the threshold was last reviewed. In practice this means limited benefit outside major cities where entry-level properties already exceed that figure in many areas.
n
What It Means For You
n
For a single earner on £30,000, the NI cut saves around £113 per year. For a household earning £60,000 combined, the saving approaches £260. These are welcome amounts but modest against the backdrop of bills that remain significantly higher than three years ago.
n
> "The Budget does more for higher earners than lower ones. That's a political choice as much as an economic one." — Institute for Fiscal Studies
n
The Bigger Picture
n
The Office for Budget Responsibility revised growth forecasts upward slightly to 1.4% for 2026, from 1.1% previously. Borrowing remains higher than the government's own targets but within range of its fiscal rules, which have themselves been loosened in the past year.
n
Britain's public debt continues its slow upward march. The decisions being deferred today will require harder choices in future Budgets.
n
