Alan Bartlett, our Income Maximisation lead, has provided a summary of the potential changes that will result from the Autumn Budget.
Minimum Wage Increases – April 2026
- For 16 – 17 year olds: increases to £8 hour – up 6%
- For 18 – 20 year olds: increases to £10.85 hour – up 8.5%
- 21 years and over: increases to £12.71 hour – up 4.1%
- Apprenticeships: increases to £8 hour – up 6%
Income Tax Thresholds frozen to 2031
- Lower Threshold – £12,570.
- Level of earnings you start to pay Income Tax is FROZEN for 5 years.
- Scotland has devolved tax powers, but likely to keep this lower threshold the same.
2-Child benefit cap scrapped
- Cap on Universal Credit Payments ended from April 2026, to lift 20,000 children out of poverty in Scotland.
- There was already a plan to do this in Scotland via a sperate payment, now not needed.
- This UK wide change will free up some devolved welfare spending for 2026, estimated to be £150m a year.
- This will allow additional child elements added to Universal Credit for ALL children – an Extra £292 per child per month.
Energy/Fuel Bills
- Electricity Green Levies shifted from bills to general taxation, saving £150 a year.
- Fuel Duty frozen (again), but only until September 2026.
- A 3p per mile charge for electric cars and 1.5p for hybrids introduced 2028.
Other Changes for Scotland
- Motability Scheme – people can swop Mobility payment (ADP or PIP) for a new car. Cannot now pay an upfront fee and additional charge to get a premium brand car.
- Universal Credit Standard Allowances increasing by 6.1% £295 of single claimants and £465 couples, well above inflation uplifts.
- An extra £820m for Scotland spending over next 3 years announced.
- Yearly tax-free savings limit (ISA) cut from £20,000 to £12,000
- All benefits to increase by 3.8% in April 26. State pension to increase by 4.8%
- 2029 – Employee pension contributions above £2,000 per year no longer exempt from National Insurance deductions.
