Spring Statement 2026: Key Points for Your Finances

The Chancellor is due to deliver the Spring Statement to Parliament on 26 March 2026. While Spring Statements are traditionally shorter fiscal events than Autumn Budgets, the Chancellor has signalled that this statement will include updated OBR forecasts and a number of policy announcements. Here are the key areas to watch.

Income Tax Thresholds

The personal allowance (£12,570) and higher-rate threshold (£50,270) have been frozen since April 2021 and are currently set to remain frozen until April 2028. This freeze — sometimes called "fiscal drag" — means that as wages rise with inflation, more people are pulled into higher tax bands.

There has been speculation that the Chancellor could announce an early end to the freeze or an uprating of thresholds. Any change here would have a direct impact on take-home pay for millions of workers. Even a small increase in the personal allowance would benefit basic-rate taxpayers. For those earning between £100,000 and £125,140, the effective 60% marginal rate created by the tapering of the personal allowance remains a key planning issue — see our guide to the 60% tax trap.

Pension Allowances

The annual allowance for pension contributions was increased to £60,000 in April 2023 (up from £40,000), and the lifetime allowance was abolished from April 2024. The government is not expected to reverse these changes, but there are areas to watch:

• Whether the tax-free lump sum (currently capped at £268,275) will be increased or indexed to inflation
• Any changes to the tapered annual allowance for high earners (currently reduced for those with adjusted income above £260,000)
• Progress on the DWP review of auto-enrolment contribution levels (see our article on the proposed increase to 12%)

Stamp Duty and Housing

First-time buyer stamp duty relief has been a key policy area. The temporary increase in the nil-rate threshold for first-time buyers (from £300,000 to £425,000) was introduced in September 2022 and was due to revert in April 2025. Watch for any extension or changes to this relief.

The government has also indicated plans to boost housing supply. Potential announcements could include changes to planning rules, new funding for affordable housing, or modifications to the Help to Buy successor schemes. For a full overview of the buying process, see our first-time buyer mortgage guide.

Benefits Uprating

Most working-age benefits are uprated annually in April, typically by the September CPI figure. For April 2026, this would be based on the September 2025 CPI rate. The government is expected to confirm the uprating in the Spring Statement, along with any additional measures for cost-of-living support.

The State Pension is protected by the triple lock, which guarantees it rises by the highest of average earnings growth, CPI inflation, or 2.5%. The new State Pension for 2025/26 is £230.25 per week (£11,973 per year), and the April 2026 rate will be confirmed as part of the statement.

OBR Forecasts

The Office for Budget Responsibility (OBR) will publish updated economic and fiscal forecasts alongside the Spring Statement. Key figures to watch include the GDP growth forecast for 2026 and 2027, the projected path of government borrowing, and the OBR's inflation outlook. These forecasts provide the fiscal context for any policy changes.

For live UK economic data, visit the UK Economy Dashboard. You can also use our mortgage calculator or pension calculator to model how potential changes could affect you.