I know £150 doesn’t sound life-changing, but when it comes to financial pressure, it’s cumulative. Every bill that goes up, every cost that increases, it all adds up. So yes, £150 matters. Combined with frozen rail fares and continued fuel duty freezes, these are tangible cost-of-living reliefs.
A lifeline for young women starting out
There’s over £1.5bn going into employment and skills support, and this actually matters if you’re a young woman trying to get your foot in the door. The Youth Guarantee means if you’re 18-21, on Universal Credit and have been job-hunting for 18 months, you’ll get a guaranteed six-month paid work placement. Not an unpaid internship that only wealthy kids can afford: paid work.
And there’s £725m for apprenticeships, with full funding for under-25s at small businesses. For young women who’ve been told university is the only route, or who can’t afford three years without earning, this opens doors. Trades, tech, finance – all suddenly more accessible. It’s not everything, but it’s something real.
Income tax thresholds are frozen
Income tax thresholds are frozen until 2031. Let me explain why this matters, because it’s sneaky.
When tax thresholds are frozen, but wages (hopefully) rise with inflation, more of your income gets taxed. You might get a pay rise, but a bigger chunk goes to tax. It’s called fiscal drag, and it means you feel poorer even when you’re technically earning more.
For women, who already earn less than men on average and are more likely to work part-time, this stealth tax can be painful. You’re working hard, maybe finally getting somewhere, and the tax system quietly takes more of your money.
Reforms for cash ISAs
From April 2027, there’s a significant change to ISAs. You’ll still have a £20,000 annual limit, but £8,000 of it must go into investments rather than cash. If you’re over 65, you’re exempt. I think this is great! Women hold far too much cash and need to put more money to work in investments.
But here’s my concern: for women who’ve been told investing is risky, complicated, or “not for people like me,” it might feel like being pushed into something they don’t understand.
So the intention is good – cash loses value to inflation, investments typically grow over time. But the execution matters. We need education, support, and accessible platforms like Propelle to help women feel confident about this shift. Otherwise, it’s just another financial hurdle.
Pension changes
From April 2029, salary sacrifice pension contributions above £2,000 annually will no longer be exempt from National Insurance. This particularly affects higher earners who’ve been using salary sacrifice as a tax-efficient way to boost their pensions.
For women climbing the career ladder, this is a blow. We already face the motherhood penalty – earning 42% less five years after having a first child. We’re already playing catch-up with our pensions. Now, one of the tools to accelerate pension saving has become less attractive.
What the Budget really tells us…
The budget gives with one hand and takes with the other.