Autumn Budget Martin Lewis

The Chancellor Rachel Reeves has today announced a host of changes to benefits, transport, and more in her Autumn Budget. MoneySavingExpert.com founder Martin Lewis has shared his instant reaction and explained what the changes mean for you, and we’ve added more detail on them below.

Pensions will be subject to Inheritance Tax (IHT) from April 2027 – though the vast majority of estates will still not pay it despite the changes. The measures mean that an estimated 10,000 estates will be liable for IHT in the 2027-28 tax year, while an estimated 40,000 estates will be liable for more IHT as a result. See our IHT news story for full details.

Currently, employers pay National Insurance (NI) at 13.8% on a worker’s earnings above £9,100 a year. Employers do not pay NI on pension contributions. Under the Chancellor’s new plans announced today, the rate at which employers pay NI will increase by 1.2 percentage points to 15%, and the threshold at which they’ll start paying that rate will drop by £4,100 to £5,000 a year. NI contributions are the UK’s second-largest source of revenue behind Income Tax, according to the Government. It says this increase will therefore boost funding for services, such as the NHS.

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