What the Autumn Budget might mean for you

27 November 2025

The UK Government’s Budget yesterday (Wednesday 26 November 2025), laid out its economic plans, including any tax and spending changes. Some of the measures it announced are repeats of previous announcements, while others are new.

We’ve reviewed the Autumn Budget so far – here’s how the key changes might affect you:

Changes to the Motability Scheme 

Often described as a lifeline, the Motability scheme helps people who receive a qualifying benefit and mobility allowance to lease a new car, wheelchair-accessible vehicle (WAV), scooter, or powered wheelchair—allowing them to stay independent. Read more about the scheme and how it works here. 

• Starting from July 2026, the Chancellor has removed the VAT exemption for certain cars in the scheme for new leases. This means that some upfront lump sum payments for a vehicle will increase, depending on the model you choose.

• In response to these changes, the Motability Scheme will no longer cover brands such as BMW and Mercedes-Benz.

• For more information, read this update from the Motability Scheme. 

Changes to benefits 

There was a mixed bag of announcements on benefits. Further changes are expected at the end of 2026 when the Timms Review into Personal Independence Payment (PIP) concludes.

• The Government repeated its previous announcement to increase the number of Work Capability Assessments and face-to-face Universal Credit health assessments. This means that if you’re unable to work, you may need to undergo assessments more frequently to receive your out-of-work benefits.  

• The review period for PIP awards is being extended. This means you may be assessed less often if your condition hasn’t changed.  

• The two-child benefit cap will be lifted from Universal Credit starting April 2026, allowing parents to claim Universal Credit or tax credits for all of their children.

Changes to employment support 

• The Government committed to investing £725 million in funding apprenticeships for young people.  

• It also repeated announcements to provide funding for a Youth Guarantee Scheme for eligible 18-21 year olds, and increased access to specialist advisors and tailored support for disabled people  claiming out-of-work benefits.

Further changes are expected following the Keep Britain Working Review and report. We’re currently analysing the findings from this report and will share this with you soon. 

Energy costs 

• The Government announced expected savings of about £150 on household energy bills from April 2026, with additional funding to be made available through its Warm Homes Plan.

• It also repeated its previous announcement to expand the £150 Warm Home Discount to an additional three million of the poorest households on means-tested benefits.

We’ll continue to analyse the Budget announcements and let you know of any further changes.