Budget 2026 calculator: find out if you are better or worse off
Use our interactive tool to see how you have been affected by John Healey’s tax and spending announcements Healey keeps income tax thresholds frozen. How much more will you pay?
By The Guardian
A new Budget 2026 calculator allows households to estimate whether Chancellor John Healey’s tax and spending measures will leave them better or worse off.
The calculator accompanies coverage of Mr Healey’s first Budget, delivered on 28 October 2026. It is designed to show how individual finances may be affected by changes announced in the statement.
One of the measures highlighted is the decision to keep income tax thresholds frozen. As wages rise, more income could therefore become subject to tax, depending on an individual’s earnings.
The Budget also includes support for household energy costs. Twenty million households in council tax bands A to D are due to receive a £100 Household Energy Payment this winter.
The payment is intended to help with rising energy bills and will be paid directly into eligible households’ bank accounts. The scheme is expected to cost £2.6bn.
The Government also announced plans to scrap standing charges on household gas bills from next year, with fixed costs instead included in the unit rate. The Treasury said around 60% of households could save an average of £45 a year as a result.
A reduction in VAT on electricity is also being extended until July. The measure is expected to reduce the annual price cap by £50, according to the Budget announcements.
For workers, the National Living Wage and National Minimum Wage are set to rise by 3.9%. The changes will apply to both younger and older workers covered by the rates.
The Budget includes other measures affecting savings, pensions and housing. The tax-free cash ISA limit will remain at £20,000, while a new allowance is planned to protect some pensioners from income tax if increases to their payments take them above the £12,570 threshold.
Households can use the calculator to enter their own circumstances and assess the combined effect of the measures announced by the Chancellor.