Autumn Budget 2026: What it means for older people

On 28 October the Chancellor delivered the 2026 Autumn Budget. We’ve picked out the measures that are most likely to affect older people now and in the near future.

Money and benefits

• Carer’s Allowance - the earnings threshold currently acts as a ‘cliff edge’ where earning over £204 per week ends entitlement. The planned change will reduce the Carer’s Allowance award by £1 for each £1 earned above the earnings threshold each week. This will be implemented during 2030-31 and is expected to benefit around 48,000 carers.
• Minimum wage - this is set to increase by 3.9%. It will be £13.21 per week for people aged 21 and over.
• Income tax - pensioners with a total income up to the value of the new State Pension from 6 April 2027 until 5 April 2030 won't have to pay income tax. 
• State Pension Triple Lock - the Government reiterated a previous announcement that an ‘adjusted’ Triple Lock ‘will mean the State Pension continues to rise by 2.5% or inflation - whichever is higher – and by even more if that is required to maintain its value relative to earnings’. 

Energy

• If you pay Council Tax and your property is within bands A-D, you'll get a £100 Household Energy Payment to help with energy costs. This will be paid directly into your bank account from January 2027.
• Ofgem will be removing gas standing charges - the daily cost you pay to your supplier for having access to energy - from late 2027. The costs of this change will be added to the unit price of gas. While this means customers have control over how much they spend, it also means that higher gas users will pay more than they currently do for their gas usage.
• The Government has committed to reforming electricity standing charges.
• The temporary VAT reduction on electricity bills, from 5% down to 0%, which took effect on 1 October 2026, has been extended to July 2027.
• The Warm Homes Loan Scheme will offer interest free or lower interest loans to households for green energy improvements.
• The Government will be implementing a strategy to tackle energy debt, including reforms to prevent debt building up, improve repayment and strengthen household support. A one-off targeted debt relief scheme for eligible households is due to launch in 2027.

Health and social care

• The Government will invest £100 million in robotically-assisted surgery in England, aiming to reduce elective wait times.
• £190 million is going to be given to the NHS to help manage extra winter pressures.
• The Government reiterated its commitment to introducing ‘personal care free at the point of use and a high-quality National Care Service in England to give peace of mind in later life’, as well as its announcement that the Independent Commission on Adult Social Care will report in 2027.

Housing

• The Government will spend £430 million to tackle rough sleeping.