{"id":285789,"date":"2025-11-27T08:28:08","date_gmt":"2025-11-27T08:28:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/285789\/"},"modified":"2025-11-27T08:28:08","modified_gmt":"2025-11-27T08:28:08","slug":"what-to-do-with-your-money-after-the-budget","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/285789\/","title":{"rendered":"What to do with your money after the Budget"},"content":{"rendered":"

Chancellor Rachel Reeves<\/a> unveiled the autumn Budget <\/a>yesterday with a further freeze to income tax thresholds confirmed along with a reduction to the cash ISA limit.<\/p>\n

Many will be dragged into paying more tax over the next few years, including millions of retirees who will face paying a levy on the state pension for the first time.<\/p>\n

Several of the changes do not come into effect for several years, giving people time to organise their finances.<\/p>\n

Below, we speak to experts to find out what you can do to protect your money after the Budget.<\/p>\n

New FeatureIn ShortQuick Stories. Same trusted journalism.<\/p>\n

How to protect your savings<\/p>\n

Reeves announced a cut to the cash ISA, from \u00a320,000 to \u00a312,000 for most people, apart from those over the age of 65 who will see the limit stay the same.<\/p>\n

The Government hopes this will encourage younger savers to pour more money into stocks and shares, a move to boost the economy.<\/p>\n

However, many do not wish to invest their funds, instead preferring the safety of an easy access or fixed savings account.<\/p>\n

Experts have suggested using up the allowance while you can, as the change will not come into effect until April 2027.<\/p>\n

Anna Bowes, savings expert at The Private Office, said: \u201cMake sure you have fully used up the allowance over the next couple of years, as the change won\u2019t take place until 6 April 2027.<\/p>\n

\u201cNext, check the rates on existing ISAs too \u2013 and switch it if they are no longer competitive. We\u2019ve seen a bit of a price war occurring at the moment which is good news for savers.<\/p>\n

\u201cMany people assume that their bank will be paying them a fair interest rate, but this might not be the case, so ask the ditch and switch if you are not getting a fair deal.\u201d<\/p>\n

Locking into a fixed rate could be beneficial now in case savings deals are less generous in the future.<\/p>\n

Camilla Esmund, senior manager at interactive investor, added: \u201cA great way to protect our wealth is to maximise tax-saving opportunities, helping you keep more of your growth and income.<\/p>\n

\u201cIn a nutshell, this means using tax wrappers such as ISAs and pensions. ISAs and SIPPs (self-invested personal pensions) each have their own set of benefits, depending on investor\u2019s individual needs and circumstances, but investments held in these accounts will be shielded from tax, and this helps grow your money over the long term.\u201d<\/p>\n

How to protect your pension<\/p>\n

Millions of state pensioners will be dragged into paying income tax on their state pension for the first time by 2027.<\/p>\n

The earnings threshold at which workers and pensioners begin paying income tax \u2013 at a rate of 20 per cent \u2013 has been frozen at \u00a312,570 since 2022, and so more people are dragged into paying the tax as wages and pensions increase.<\/p>\n

Labour has also clamped down on the use of salary sacrifice schemes, which allow workers to give up part of their gross pay in return for a non-cash benefit such as pension contributions, childcare, or an electric car.<\/p>\n

Pension contributions above \u00a32,000 a year using salary sacrifice will face NI from April 2029, under changes announced by Reeves.<\/p>\n

Antonia Medlicott, founder and managing director of Investing Insiders: \u201cA risk with this new salary sacrifice limit is that you won\u2019t meet your pension goals, which could delay retirement. So consider a self-invested personal pension (SIPP), which allows you to have greater control over your pension by choosing how it\u2019s invested.<\/p>\n

\u201cNot only this, but for basic taxpayers, for every \u00a3100 you put in, the Government will contribute \u00a325. Meaning if you put \u00a3100 into a SIPP a month, you will end up with an extra \u00a3300 each year.<\/p>\n

\u201cAll investment growth inside a SIPP is also tax-free, and from the age of 55 (57 from 2028) you can take 25 per cent of your pension pot also tax-free. Meaning it won\u2019t just help you reach your pension goals, but could accelerate the speed to your retirement.\u201d<\/p>\n

The delay in implementation means people should maximise the schemes now, experts say.<\/p>\n

Lisa Picardo, UK chief business officer at PensionBee, said: \u201cEmployees that are enrolled in a scheme that facilitates salary sacrifice should look to take advantage of the opportunity to maximise pension contributions before the April 2029 deadline.\u201d<\/p>\n

Craig Rickman, personal finance expert at interactive investor, adds: \u201cThe message for workers is simple: review your contributions and check whether changes affect you.\u201d<\/p>\n

How to protect your mortgage<\/p>\n

The Government has announced a high-value council tax surcharge of \u00a32,500 on properties worth over \u00a32m, which will raise about \u00a3400m.<\/p>\n

Properties worth more than \u00a35m will face a \u00a37,500 charge. Dubbed a \u201cmansion tax\u201d, the charge will be levied on top of the existing council tax charge.<\/p>\n

There was also a two percentage point property income tax increase. This will affect landlords who pay income tax on the money they earn from renting out properties.<\/p>\n

The basic, higher and additional rates of property income tax have now increased to 22, 42 and 47 per cent respectively.<\/p>\n

This could lead to more landlords exiting the market \u2013 with many already leaving due to the Renters\u2019 Reform Bill. This is likely to push up demand from renters and add to already rising monthly payments.<\/p>\n

A more widely felt impact could also come from the cut to cash ISAs. This is because they are a key source of funding for banks and building societies, which use the deposits to fund loans to households and businesses.<\/p>\n

The cut means that there is likely to be less availability of mortgages for first-time buyers.<\/p>\n

David Hollingworth, associate director at L&C Mortgages, said: \u201cOn the face of it, savers will be more heavily impacted by the changes to ISAs. However, lenders, especially building societies, have pointed to the impact that a reduction in cash savings could have on mortgage rates.<\/p>\n

\u201cCash savings are a key funding source, so if that becomes more constrained and more competitive, it could push up the rates they can offer on mortgages.\u201d<\/p>\n

Experts encouraged homeowners and first-time buyers to see if they can find a competitive rate now and lock it in.<\/p>\n

Most lenders will allow you to do so six months in advance so you can switch to a better deal if one arises.<\/p>\n

Many rates are still available below 4 per cent \u2013 although most are reserved for those with the highest deposits and equity.<\/p>\n

Jack Tutton, director at Fareham-based SJ Mortgages, said: \u201cWe have seen rates coming down for a sustained period more recently, with markets wanting stability. This trend should continue in the near future, given the lack of shocks in today\u2019s budget.<\/p>\n

\u201cLenders are likely already factoring in a base rate cut in December; this will be welcome to mortgage holders ahead of what is for many the most expensive time of the year.\u201d<\/p>\n

A change to Lifetime ISAs in future \u2013 a key scheme for helping first-time buyers get on the property ladder \u2013 could also scare potential buyers.
However, it remains a tool for now.<\/p>\n","protected":false},"excerpt":{"rendered":"Chancellor Rachel Reeves unveiled the autumn Budget yesterday with a further freeze to income tax thresholds confirmed along…\n","protected":false},"author":2,"featured_media":285790,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[458,84,4176,25949,4178,4174,4175,3668,56,54,55],"class_list":{"0":"post-285789","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-budget","9":"tag-business","10":"tag-finance","11":"tag-mortgages","12":"tag-pensions","13":"tag-personal-finance","14":"tag-personalfinance","15":"tag-savings","16":"tag-uk","17":"tag-united-kingdom","18":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/285789","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=285789"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/285789\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/285790"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=285789"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=285789"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=285789"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}