Budget 2025: What it Means for Penny Post Group Members
Posted on Nov 27, 202526th November saw the long-awaited Budget 2025 delivered by Rachel Reeves, Chancellor of the Exchequer. There’s sure to be much analysis of the full impact of this over the coming days, and weeks, so we’ve picked out some of the points we think are most relevant to Penny Post Group members.
- Income tax and national insurance: The thresholds for both these have been frozen for 3 more years, from 2028. This may mean you pay more tax, if you salary increases and takes you into a new tax band. However, basic rates of income tax, VAT and national insurance will not increase
- Pensions: From 2029, there will be a £2,000 cap on salary sacrifice into a pension, with any contributions above that taxed in the same way as other employee pension contributions
- Isa reform: From 6 April 2027, the annual Isa cash limit will be decreased to £12,000, down from £20,000
- Two-child benefit cap: This will be abolished in full from April 2026
- National minimum wage: This will increase for 18-20 year olds from £10 to £10.85, and the living wage from £12.21 to £12.71
We’ve also found a useful calculator to see how the Budget impacts your finances, which you can see here.