Targeted Support for Households

Higher minimum wages and greater support for families

The Chancellor of the Exchequer, Mr Healey, presented a package of targeted measures in the Autumn Budget Statement 2026 to ease cost-of-living pressures, support working people and provide greater financial certainty for households. The measures focus on reducing the cost of everyday essentials, protecting pensioners from unexpected income tax liabilities and improving financial support for workers and families.

Rather than relying on a single intervention, the package combines temporary cost reductions with changes to wages, parental pay entitlements and tax-free mileage allowances. Mr Healey announced that the proposals reflect the Government’s stated intention to help households manage ongoing financial pressures while ensuring support reaches different groups across society.

Key Measures Include:

•    Reducing the cost of everyday essentials by temporarily lowering tariffs on more than 100 food and drink products.

•    Protecting pensioners from unexpected tax bills through the new Pension Tax Allowance, fulfilling the Government’s commitment that pensioners with incomes at or below the full new State Pension will not be brought into paying income tax as a result of State Pension uprating during this Parliament.

•    Supporting working people and families by increasing the National Living Wage and National Minimum Wage by 3.9%, expanding parental pay entitlements to include self-employed fathers and partners for the first time and permanently increasing tax-free mileage rates for those who rely on their own vehicles for work.

Together, the Chancellor said, these measures are intended to provide practical support for households, help pensioners manage their incomes and ensure that working people and families receive targeted assistance.

This summary of the Autumn Budget Statement 2026 was produced on Wednesday, 28 October 2026 and is for your general information and use only. It is not intended to address your specific needs. You should not rely solely on this content, nor should it be considered or used as advice. Although efforts have been made to provide accurate and timely information, there can be no guarantee that it remains accurate as of the date received or will remain accurate in the future. Individuals or companies should seek appropriate professional advice after carefully examining their particular circumstances before acting on this information. We accept no responsibility for any loss resulting from acts or omissions related to this content. Thresholds, percentage rates and tax legislation may change in subsequent Finance Acts. Tax levels, bases and reliefs are subject to change and their value depends on an individual's personal circumstances.