Martin Lewis has shared his immediate assessment of the Budget and its impact on taxes and energy bills affecting personal finances. The Money Saving Expert founder responded to Chancellor Reeves’ second Budget, praising the removal of the two-child benefit cap, reduction in energy bills, and introduction of a new tax on luxury homes exceeding £2 million.
Lewis expressed satisfaction with the changes in gas and electricity bill charges. He highlighted the shift of certain levies into general taxation and elimination of the ‘eco scheme’. These adjustments are expected to lower the unit rates for electricity and gas usage, potentially saving around £150 annually on typical energy bills.
Regarding concerns about fixed-rate tariffs, Lewis indicated that the government intends for energy companies to pass on the savings directly to consumers. He emphasized that the reductions should reflect on everyone’s bills starting from the following April.
Discussing the high-income surcharge on council tax for expensive homes, Lewis detailed the tiered charges based on property values. He also mentioned a future 3p-per-mile surcharge for electric vehicle owners from April 2028, highlighting uncertainties about its implementation.
Reeves’ plan includes freezing bus fares, rail fares, and NHS prescription charges next year. However, duties on alcohol and cigarettes will increase in line with inflation. Lewis also addressed the changes to Cash ISAs, noting the reduction in the annual allowance to £12,000, with exemptions for over 65s maintaining a £20,000 limit for cash ISAs and £20,000 for shares ISAs.
Lewis criticized the Office for Budget Responsibility for an inadvertent leak of key budget decisions before the official announcement, causing significant market confusion. The OBR chairman apologized for the error and initiated an investigation into the premature release of the Budget forecast document.
Despite calls for resignation, Rachel Reeves and the Chancellor expressed confidence in Richard Hughes, the OBR chairman. The leak’s impact on financial and currency markets was acknowledged, emphasizing the seriousness of the situation and the need for a thorough investigation.