Budget winners and losers: pensioners and households gain as banks and betting shops hit
The Budget, John Healey’s first as chancellor in the Burnham government, offers some help with living costs while raising taxes for banks, betting shops and people with savings or rental income. Its measures also leave some groups, including students with plan 2 loans, without the relief they had hoped for.
Households in council tax bands A to D are due a £100 energy payment this winter, while the state pension will rise to £13,036 next April and pensioners will receive a matching personal allowance. The Budget also supports small alcohol producers, first-time buyers and some electric vehicle drivers. Banks face a temporary surcharge increase from 3% to 6%, betting machine tax will rise from 20% to 25% in 2027, and tax on savings interest and property income will increase; the OBR says higher landlord costs could put pressure on rents.
In short
- A £100 energy payment is planned for households in council tax bands A to D.
- Pensioners’ state pension will rise to £13,036 next April.
- Banks, betting shops and some savers face higher taxes.
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The case for
Supporters could argue that targeted help with energy bills and a higher state pension offer practical relief to households facing living costs, while the pensioners’ matching personal allowance helps protect their income. Higher taxes on banks, betting machines, savings interest and property income can be defended as a way to raise revenue from those seen as better able to contribute, alongside support for small producers, first-time buyers and some electric vehicle drivers.
The case against
Critics could argue that temporary or targeted payments may not keep pace with household costs, and that raising taxes on savings and property income risks discouraging saving or investment and could feed through to higher rents. They may also see the bank and betting tax rises as burdens that could affect lending, jobs or customers, while the lack of relief for Plan 2 student-loan borrowers leaves a group facing financial pressure without the help they had expected.
Explained simply
A Budget sets out the government’s plans for taxes and public spending, affecting how much people and businesses pay and what support they receive. Its impact varies: a payment or tax rise can help one group while increasing costs for another.
The chancellor presents the Budget, and the Office for Budget Responsibility (OBR) assesses its likely economic effects. Households, pensioners, landlords, banks and other businesses may all be affected through changes to bills, benefits or taxes.
These decisions matter because they influence household finances, business costs and the government’s public funds. Changes to landlords’ costs, for example, may also affect rents, while people with student loans or other financial arrangements can be affected differently from those receiving direct support.