Budget 2026: Martin Lewis' instant reaction and analysis – tax thresholds still frozen, cash ISA cut reversed, £100 energy bill help and more
Martin Lewis has warned that frozen income tax thresholds remain one of the biggest changes announced in the 2026 Budget.
By MoneySavingExpert
Martin Lewis has warned that frozen income tax thresholds remain one of the biggest changes announced in the 2026 Budget.
The MoneySavingExpert.com founder said the continued freeze would lead to “fiscal drag”, as rising wages push more income into tax without the thresholds increasing. He described it as the biggest revenue raiser in the Budget.
Chancellor John Healey announced the measures in his first Budget on Wednesday 28 October 2026. The personal allowance and income tax thresholds will remain frozen for a further period.
A planned reduction in the Cash ISA allowance has also been reversed. The limit for under-65s had been due to fall from £20,000 to £12,000 a year.
The reversal means the cut will not go ahead. Related anti-avoidance measures, including restrictions on transferring money from a Stocks and Shares ISA to a Cash ISA, have also been dropped.
Energy support was another key announcement. From January, households in Council Tax bands A to D will receive £100 towards their energy bills, paid by direct debit.
The Budget also confirmed that the freeze to the Plan 2 student loan repayment threshold will proceed.
Further measures announced for 2027 include a tax cut for low-income state pensioners, while millions of households in Council Tax bands A to D are expected to receive the £100 energy support.