Autus Newsletter » Autumn Budget 2025
Welfare and labour markets
National living wage (NLW) and national minimum wage (NMW)
Significant increases to the NLW and NMW were announced the day before the Budget on 25 November 2025.
Universal credit (UC) and other benefits
The two-child limit for UC and child tax credit will be removed. The £2,500 surplus earnings threshold will be extended for one year from 6 April 2026.The standard allowance, the basic amount of UC all eligible households receive, will increase by over 6% in April 2026. The maximum amount that can be reimbursed for childcare costs for eligible UC claimants will increase by £736.06 for each additional child above the current maximum cap for two children.
Other working age benefits will be uprated in line with the September CPI inflation rate of 3.8% from April 2026.
State pension
The basic and new state pension will be uprated by 4.8%, amounting to up to an additional £575 a year in 2026/27 depending on the pensioner’s entitlement. The pension credit standard minimum guarantee will also be uprated by 4.8% from April 2026.Administration of pension credit and housing benefit will be brought together.
Youth jobs guarantee scheme
The government will guarantee a six-month paid work placement for every eligible 18-21 year old who has been on UC and looking for work for 18 months. This will cover 100% of employment costs for 25 hours a week at the relevant minimum wage, and additional wraparound support.This newsletter is for general information only and is not intended to be advice to any specific person. You are recommended to seek competent professional advice before taking or refraining from taking any action based on the contents of this publication. The Financial Conduct Authority does not regulate tax advice, so it is outside the investment protection rules of the Financial Services and Markets Act and the Financial Services Compensation Scheme. The newsletter represents our understanding of the law and HM Revenue & Customs practice as of November 2025. Past performance is not a reliable indicator of future performance. The value of investments and the income from them can go down as well as up, and you may get back less than you invested. The value of tax relief depends upon your individual circumstances. Tax laws may change. The Financial Conduct Authority does not regulate Accountancy Services, Legal Services, Taxation Advice, Business Consultancy Services, Estate Agency Services and some forms of private banking and debt consolidation.