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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Frozen Tax Thresholds Create Fiscal Drag
- Freezing income tax thresholds causes fiscal drag where pay rises become taxable without rate changes.
- Jenny Ross warns millions will move into higher tax bands as thresholds stay frozen until 2031.
Savings And Dividend Taxes Have Increased
- Dividend and savings tax rates rise, adding an extra 2% on certain savings income above allowances.
- Tom Selby says the changes aim to protect working people while raising revenue from wealthier savers and investors.
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.