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Budget 2025: What is it and how could it impact me?

How will the budget impact me?

The Chancellor of the Exchequer, Rachel Reeves, has made the yearly autumn budget announcement.

The budget explains how the government will spend the UK's cash over the next year and how it will raise the money.

So how might these changes affect you? Read on to find out.

1. Pay rise or benefit boost

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One announcement the Chancellor made yesterday, is that your parents or guardians might get a pay rise or a benefit boost.

The government is making employers pay people a bit more and they're giving out more in benefits for people on lower incomes.

The downside is that over the next few years, your parents might have to pay more in tax because of that higher wage.

2. Cuts to gas and electricity bills

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You might have heard adults talking about how expensive gas and electricity is.

Well, the government is promising to cut energy bills by about £150 from April 2026.

It might still be an expensive winter, but there's a bit of relief coming in the spring.

3. Spending more money

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The Government has said they are going to spend more money.

They want to spend on health services in England, on improving things like libraries for secondary schools and improving playgrounds across England too.

What do other people think?

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The budget is made by the Government, which at the moment is the Labour Party.

The Conservative Party, who are in opposition, says that the budget breaks Labour's manifesto promise. They say Labour promised not to raise taxes on "working people", but believe that this budget does precisely that.

The Liberal Democrats seem to agree. They think the budget taxes "ordinary people to record levels". Which means people might end up with less money, because they are paying more tax to the government.

The Green Party agrees with some of the Chancellors announcements, but they've said there are no "transformational changes" that would improve the lives of ordinary people.

Reform UK strongly criticised the budget, and says it will make wealthy people leave the country.