What the 2026 autumn budget means for single parents

What is the autumn budget?

The autumn budget talks about the UK’s financial situation and sets out the Government’s changes to taxation and spending.

Most of the changes in the budget won’t come into effect until the new tax year in April 2027, but it’s good to be aware of what will be changing so that you can plan ahead.

The Scottish budget won’t be announced until December 2026, but the UK budget gives us an idea about what is to come later in the Scottish budget. Some of the changes will also directly affect Scotland where things aren’t devolved, for example with National Minimum Wage or Universal Credit.

We have compiled some info to let you know how the changes from the UK autumn budget might affect single parents in Scotland.

 

Minimum wage increase

In April 2027, the National Minimum Wage will increase as follows:

• For those aged 21 or over, it will increase from £12.71 to £13.21 per hour.
• For those aged 18 to 20 years, it will increase from £10.85 to £11.27 per hour.
• For apprentices and those aged 16 or 17 years old, it will increase from £8 to £8.31 per hour.

 

Energy bills

VAT scrap on electricity

The VAT on electricity has been scrapped until July next year. This means 4.8% off your electricity bills, but with the energy price cap on both gas and electricity up by 3.6% since October and set to go up more in January, the savings from the VAT scrap on electricity will be much smaller.

Gas standing charges scrap

Currently, standing charges add around £300 per year to your energy bills. Gas standing charges are to be scrapped as early as 2027, though a date has not yet been set.

£100 off energy bills this winter

If you live in England and are on council tax bands A-D, a one off payment of £100 will be paid into your bank account to help with your energy bills this winter. We are expecting something similar to happen in Scotland, but how this will apply will be revealed in the Scottish Budget in a few weeks time on 3 December.

 

Carer’s Allowance

The Government announced plans to end the strict “cliff edge” earnings rule for Carer’s Allowance. Currently, the cliff edge rule means that earning just £1 over the limit means you lose 100% of your Carer’s Allowance. This will instead be replaced by a taper system.

This change will not come into effect immediately, but we will update you with more information shortly.

 

Social security increases

In line with inflation, most working age benefits amounts will increase in April 2026.

 

Further support

If you are confused by any of this information, you can ask at your Job Centre or call our Helpline between 9:30am and 4pm Monday to Friday on 0808 801 0323.

If you would rather speak to us online, you can use our live web chat or you can email us on advice@opfs.org.uk.

What if I need more urgent help?

• Find out about crisis support
• How to reduce your living costs
• More information on the Scottish Welfare Fund, which provides help to those in urgent need of money to pay for food, fuel or essential household items
• Try our free budgeting and debt planner
• If you are unsure about what benefits you can claim, try our free benefits calculator. You can also contact our Helpline and we can run a benefit check for you