Which? Will the Chancellor's Budget make you any better off?
Nov 26, 2025
Tom Selby, Director of Public Policy at AJ Bell, joins the discussion, bringing deep insights into pensions and tax policies. The duo delves into the implications of the income tax freeze and the new tax rates on savings and dividends. They break down the rationale behind cash ISA reforms and the changes to Lifetime ISAs. Selby warns about the upcoming £2,000 cap on salary sacrifice, while both guests highlight the complexities introduced by the latest Budget and how it affects everyday finances.
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Cash ISA Allowance Cut To £12,000
- Cash ISA allowance will be limited to £12,000 from April 2027 while overall ISA limit stays £20,000.
- Jenny Ross says the move intends to nudge savers into stocks and shares ISAs but its effectiveness is uncertain.
Max Out Cash ISAs Before 2027 Deadline
- If you hold large cash ISAs, consider using the 18 months before April 2027 to max them.
- Jenny Ross warns this is sensible if you want to preserve tax-free cash shelter under current rules.
State Pension Rise Nears Personal Allowance
- The triple lock pushes the state pension up by 4.8% next year, bringing the full new state pension to about £12,547.
- Jenny Ross notes this level nears the personal allowance so many pensioners could soon face income tax.