Rachel Reeves delivered the Budget today – and while the headlines will focus on tax, spending and the political drama, what really matters is how these changes will practically affect your financial health.
We’ve broken down the key updates that impact women, especially those of us juggling careers, caring responsibilities, homes, pensions and long-term plans.
As expected, the government has introduced new limits on pension salary sacrifice, capping the tax-efficient amount at £2,000 per year.
Until now, salary sacrifice has been one of the few remaining ‘big wins’ in the UK pension system:
Under the new rules, any sacrificed contributions above £2,000 will be treated as ordinary pension contributions, making larger contributions less rewarding.
This impacts everyone – but it affects women more.
And if you’re a higher earner who currently sacrifices a significant portion of your salary, the change could mean paying noticeably more in NI each year and receiving a smaller uplift from your employer too.
With career breaks, part-time work and the gender pay gap already leaving women’s pension pots 20–24% smaller than men’s by mid-life, this shift makes it even more important to know your contribution rate and make every pound count.
Your next step: Review your current pension contribution % and check how the new rules affect you. The change won’t take effect until April 2029, so there’s still time to make the most of the current system.
The government has scrapped the long-standing two-child benefit cap – the rule that stopped many working-age families from receiving support for a third (or later) child.
Removing the cap could lift hundreds of thousands of children out of poverty, and it offers real, practical relief for families. It also helps level the playing field for larger households – making saving, investing and pension planning more viable, without the ‘third child penalty’.
For women juggling childcare costs, mortgages or rent, and rising living expenses, this change could ease monthly financial pressure. It comes into effect from April 2026.
Your next step: Take another look at your household budget, and see where extra support could improve your cashflow.
The budget has also reshaped the ISA system. The total £20,000 allowance stays, but:
Cash ISAs have long been the go-to for many women – offering flexibility, certainty and low risk. But today’s change makes investing a more essential part of long-term financial planning.
If you’ve been cautious or unsure where to start, you’re not alone. This shift is a nudge toward investing – even small, regular amounts.
Your next step: Review how much of your ISA allowance you’ve used this year – and consider whether it’s time to begin (or build on) investing for the long term.
These aren’t all directly linked to personal finances – but they matter for women, families and communities:
Budgets come and go. Policy shifts. Markets move. It can feel hard to care about it all, especially when you’re already carrying the mental load of work, home and family.
But your financial wellbeing is built on simple fundamentals: knowing your numbers, making confident decisions, and taking care of future you. Understanding how rules and regulations change is part of that.
If you’re not sure where to begin, try our simple Financial Health Check (that takes less than 5 minutes). It can give you a great starting point for understanding how things are now, and what you need to do next…
Welleness is a women-led business on a mission to close the gender finance gap for good. We offer women a clear, confident and caring pathway to financial health – zero jargon, no pressure.