UK Budget criticised for limited low-income relief and higher taxes
The Resolution Foundation said the 2026 UK budget provided only limited relief for low-income households, with energy subsidies spread almost equally across rich and poor, according to The Guardian. Earlier, the budget introduced a 2-percentage-point rise in income tax on rental income from April 2025, raising the basic rate to 24 % and top rates to 44 % and 49 %, as reported by The Negotiator. It also lifted the minimum wage by 3.
9 %, added a £100 winter energy payment for 20 million households and allocated an extra £270 million to Northern Ireland, according to Belfast Live. Chancellor John Healey pledged to reduce the benefits bill before the next election, while the BBC noted criticism that the plan offered thin cost-of-living support and left defence under-funded. The budget, described by the BBC and The Guardian as modest and focused on regional devolution, avoided new taxes and aimed to ease household costs amid fiscal constraints.