What changes for older people from April 2027?

The Autumn Budget was announced on 28 October 2026. It brings several changes for older people, and most of them start in April 2027.

One of the main changes is a new Pension Tax Allowance, which means some pensioners won't pay income tax at all. There's also help with energy bills, and a change to how health benefits like Personal Independence Payment (PIP) are assessed.

Here's what's changing and when.

A new Pension Tax Allowance

From April 2027, you won't pay income tax if you're over State Pension age and your total income is no more than the full new State Pension. The government calls this the Pension Tax Allowance.

Around 500,000 pensioners will benefit in 2027-28, according to the government. About 290,000 of them won't pay any income tax. The rest will get a reduced allowance.

This matters because the State Pension is about to rise above the standard £12,570 tax-free allowance. City AM reports that the full new State Pension will go up by £489 to £13,036 a year (£250.70 a week) from April 2027. Without the new allowance, people living only on the State Pension would have started paying income tax.

Chancellor John Healey said these pensioners "will not pay income tax in this Parliament", City AM reports.

The allowance only applies once you reach State Pension age. That age is rising from 66 to 67, depending on when you were born. You can check your State Pension age on GOV.UK.

Help with energy bills

In 2027, up to 20 million households in England will get a £100 Household Energy Payment. It's for homes in council tax bands A to D. Similar support will be available in the rest of the UK.

The temporary VAT cut on electricity bills will also run until 1 July 2027. The government says this will take around £50 off the Ofgem price cap from April 2027.

The government hasn't yet said how or when the £100 payment will be made.

PIP and health benefits

Personal Independence Payment (PIP) helps with extra living costs if you have a long-term health condition or disability. It's for people who find everyday tasks or getting around difficult. You can get it even if you work or have savings.

You usually need to be under State Pension age to make a new PIP claim. People over State Pension age can usually apply for Attendance Allowance instead.

If you or someone you care for claims PIP or another health benefit, here's what the Budget says.

• More face-to-face assessments. The government says it will increase face-to-face assessments for health benefits. It has already more than doubled the rate of these assessments since July 2024.
• The PIP review. The government will look at the recommendations from Sir Stephen Timms' review of PIP. No changes from the review were announced in the Budget.

The Budget also brings in new measures to tackle benefit fraud and error. The government expects these to save £1.4 billion between 2027 and 2032.

Savings and fuel

• Tax on savings income goes up. From April 2027, income tax on savings and property income will rise by two percentage points in every band. For example, a 20% rate would become 22%. The government says 84% of all taxpayers won’t see their tax bill go up. The £20,000 cash ISA limit isn’t changing.
• Fuel duty stays lower for longer. The 5p cut in fuel duty has been extended for another six months. The planned inflation-linked rise in fuel duty is delayed until 1 July 2027.

What about social care?

The government's Budget announcement doesn't include any new measures on adult social care, unpaid carers or Carer's Allowance. The full Budget documents may say more. We'll update this article if they do.

On 8 October, the government announced new funding for dementia research. Read more in our article on £48m for dementia research: where the money goes.