1. Help to Save scheme made permanent
In a major boost for low-income savers, the government has confirmed that the Help to Save scheme will be made permanent.
The scheme was previously set to end in April 2027, but the Chancellor announced it will now continue indefinitely. In addition to securing the scheme's future, eligibility will be expanded from April 2028 to include all Universal Credit claimants who receive the child element or the carer element.
The Help to Save scheme allows eligible individuals to save up to £50 a month and receive a generous 50% government bonus. This means for every £1 you save, the government adds 50p. If you save the maximum amount over four years, you could earn a tax-free bonus of up to £1,200. This announcement gives thousands more people the certainty they need to start building a rainy-day fund. For more details on how the scheme works and the eligibility requirements, check out our article Help to Save scheme explained.
2. Changes to the Lifetime ISA (LISA)
There is finally a glimmer of hope for first-time buyers who feel trapped by the Lifetime ISA property price cap. The government has announced it will launch a consultation in early 2026 on the future of the Lifetime ISA.
Currently, LISA savers can only use their funds penalty-free once they turn 60, or to buy their first home if it costs £450,000 or less. With house prices having risen significantly since that limit was set, many savers, particularly in London and the South East, face a 25% withdrawal penalty if they buy a home above this limit, effectively losing not just their government bonus but some of their own savings too.
The consultation will consider a "new, simpler product" to replace the LISA or potentially reform the existing rules to better support aspiring homeowners.
3. Student loan thresholds frozen
Graduates face a 'stealth tax' as the government confirmed plans to freeze student loan thresholds, dragging more people into making repayments as their wages rise.
From 6th April 2026, the Plan 2 repayment threshold will rise from its current level of £28,470 to £29,385. However, the government has announced that the threshold will then be frozen at this level for three years, until April 2030. It is worth noting that the threshold in England was reduced to £25,000 for students who started a degree from 2023 onwards.
Crucially, the interest rate thresholds are also being frozen for the same period. Currently, Plan 2 borrowers pay interest between RPI (Retail Price Index) and RPI + 3%, depending on income. Additionally, the higher interest threshold (where you start paying the maximum interest rate) will be set at £52,885 from April. This upper threshold will also be frozen until 2030.
All this means that as graduates' earnings rise with inflation over the next few years, more of them will not only be making student loan repayments but will also be dragged into paying higher rates of interest on their debt.
4. Customs duty 'loophole' to close
If you regularly buy small items from international online retailers, your shopping could soon get more expensive, as the Chancellor has announced plans to scrap the 'Low Value Consignment Relief' on customs duty.
Currently, goods imported into the UK with a value of £135 or less are exempt from customs duty. This relief has allowed overseas retailers to ship small packages to UK customers without the extra fees that apply to larger orders.
By removing this relief (scheduled for 2029), the government aims to level the playing field for UK high street retailers, but it means consumers may face higher costs at the checkout for small international orders in the future.
5. Working from home tax relief to disappear
The era of claiming tax relief for working from home is coming to an end for many. The government confirmed that the tax relief for non-reimbursed homeworking expenses will be abolished from 6th April 2026.
During the pandemic, millions of employees claimed a flat rate of £6 per week tax relief if they were required to work from home. While eligibility had already been tightened - restricting claims to those who live far from their office or have no appropriate workspace provided - the relief will now be removed entirely for expenses not reimbursed by an employer.
Employees who are contractually required to work from home will need to ensure their employer reimburses them directly for any additional costs, rather than relying on claiming money back from HMRC.
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