BUDGET 2025: The biggest winners and losers

This has been a highly-speculated and much-anticipated Budget, with rumours raising concerns that there will be more losers than winners from the policy changes.

However, some of the biggest speculated changes have been watered down, while some positive measures have been announced that may have been missed.

We’ve rounded up the biggest winners and losers from this Budget below.

🏆 Winners

• Those on minimum wage: The wage will increase by 4.1% to £12.71 per hour for eligible workers aged 21 and over, increasing the total annual earnings of a full-time worker on the Living Wage by £900.

• Low-income earners: The government’s Help to Save scheme has been made permanent from 2028, delivering a 50% boost on savings for 4.5 million low earners.

• Pensioners claiming state pension: 13 million pensioners will receive an extra £550 per year in state pension next year.

• Rail travellers and commuters: Rail fares have been frozen for the first time in 30 years, for one year.

• Those who pay for prescriptions: Prescription charges have been frozen for the second year in a row at £9.90.

• The 1.5 million children affected by the 2-child limit on Universal Credit: The cap will be lifted in 2026, benefitting 560,000 families with an average boost of £5,310.

• People paying back student loans: Interest has been frozen.

👎Losers

• Those wanting to pass on inheritance: The IHT tax-free allowance freeze has been extended, meaning the thresholds are not rising with inflation.

• Workers: Income tax thresholds are to be frozen for 3 additional years, meaning no rise in thresholds until at least 2031.

  • This brings 780,000 more people into basic rate tax by 2029-30 and 920,000 more people paying higher rate by 2029-30.

  • By 2030-31, 5.2 million additional individuals will have been brought into paying income tax, 4.8 million more will have moved to the higher rate, and 600,000 more will be on the additional rate.

• Workers saving into a pension using salary sacrifice: They will be charged NI on contributions over £2,000, raising £4.7 billion.

• Savers: Those who usually max out their Cash ISA can now add just £12,000 (previously £20,000) into their tax-free accounts each year. Note: People can still add £20,000 per year over all their ISAs, but if they want to max out, £8,000 must go into a Stocks & Shares ISA – unless you’re over 65, in which case you’ll be allowed to keep your full £20,000 annual allowance into a Cash ISA.

• High-value homeowners: Those with houses valued at more than £2 million will be penalised through the introduction of a High Value Council Tax charge.

• Those who rely on dividend income: Tax rates on dividends to be increased by 2%.

• Savers with money outside ISAs: Tax on savings income is to be increased by 2%.

• Landlords and those earning property income: Their tax on income will be increased by 2%.

• Electric vehicle users: There will be a new mileage-based charge on electric and plug-in hybrid cars from April 2028. It’ll be around half the fuel duty rate paid by drivers of petrol cars and will raise £1.4 billion.

• Gamblers: Reforms to taxation on gambling which will raise £1.1 billion.