The Martin Lewis Podcast Budget 2025: Instant reaction special!
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Nov 26, 2025 In a rapid-fire breakdown of the latest budget, Martin Lewis reveals impactful changes like the state pension increase and freezing of student loan thresholds. He discusses a significant shift in energy levies away from bills and the introduction of new surcharges for electric vehicles. A surprising end to the two-child benefit limit is on the horizon, while potential ISA reforms are also highlighted. With tips on switching tariffs and navigating fiscal changes, it's a must-listen for anyone interested in personal finance!
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Frozen Thresholds Create A Stealth Tax
- Freezing tax thresholds causes fiscal drag that raises the effective tax take without changing rates.
- Martin Lewis warns this stealth tax reduces real spending power as earnings and inflation rise.
Big ISA Allowance Changes Coming In 2027
- Cash ISA annual allowance will fall from £20,000 to £12,000 from April 2027 while stocks and shares ISA stays at £20,000.
- Martin Lewis notes a carve-out keeps the cash ISA limit for those aged 65+, reducing harm to older savers.
Shield Savings From Higher Tax Rates
- Prepare for a 2% rise in tax on savings, property and dividends from April 2027, raising marginal rates to 22/42/47p.
- Move eligible savings into ISAs where possible to shield interest from the higher rates.