UK Autumn Budget 2025: Rachel Reeves enters Budget week with the weight of a strained public purse and rising household anxiety. Expectations are high, even though the room for giveaways is small.
Much of the conversation has focused on tax rises and frozen thresholds, but there are a few areas where families and consumers could see genuine relief. While such reductions may not offset the broader pressures, they signal an effort to ease costs in targeted sectors.
What Could Get Cheaper After the Budget?
- Lower energy bills if the government cuts the 5% VAT on gas and electricity.
- Cheaper electric cars through an extended plug-in grant and more funding support.
- Reduced public charging costs if VAT on EV charging is reviewed and lowered.
- Slight relief for larger families if the two-child benefit cap is eased or scrapped.
- Potential savings on household expenses if regulatory charges on suppliers are reduced.
- The Resolution Foundation think tank suggested that all landlords should Pay NI at a basic rate of 20% with an additional rate of 8% for property earnings above £50,270 a year.
Energy Bills May See a Softer Edge
The prospect of price relief is perhaps clearest in household energy. The Treasury is considering cutting the current 5 per cent VAT rate on gas and electricity or trimming regulatory charges passed on by suppliers.
Either could cause bills to fall almost immediately. Inflation remains stubborn, while demand will increase with the onset of winter and a modest fall in the cost of energy would create welcome breathing space for millions of households.
Electric Cars May Get Cheaper to Buy
Despite plans by the government to impose future pay-per-mile charges on EV drivers, the upfront cost of electric cars could drop. The Budget is likely to extend the plug-in car grant for another year, backed by an additional £1.3 billion.
ALSO READ: UK Autumn Budget 2025: How the Budget Will Affect the Average Family’s Cost of Living in 2026
Support of up to £3,750 may be available on eligible models, further closing the gap between EVs and comparable petrol cars. For many first-time buyers, this shift could make entry into the electric market far easier.
Charging Infrastructure to Expand
A further £200 million of new EV charging points is likely to push down long-term running costs. The general rule is that more chargers mean more competitive pricing and fewer reliance spikes at more expensive public stations.
A broader network means improved access for drivers without home chargers, gradually reducing their cost disadvantage.
Potential child-related benefits changes
Reeves has hinted she may revise the two-child limit on benefits. If adjusted or removed, larger families could receive improved support. While this does not directly make items cheaper, increased relief would reduce effective household costs.
For families stretched by rising food and housing prices, even partial reform could bring meaningful savings.
How is the Limited but Real Pockets of Relief
This Budget will not reshape the entire cost landscape, but it may ease pressure in targeted areas. Energy bills, EV prices and family support stand out as the clearest candidates for reduction. While most fiscal tools are pointed toward repair rather than expansion, small drops in cost will matter even more.
ALSO READ: Indian Constitution Day 2025: History, Significance & What is the Story Behind November 26
Disclaimer: This article is an analysis based on expected Budget measures and should not be taken as financial advice or confirmation of government policy.
