Spring Statement 2025: What does it mean for you?

Here are some of the key announcements that could affect you: 

The Chancellor said there were no tax increases in her Spring Statement, but she announced there would be a government crackdown on tax evasion. 

She said the number of tax fraudsters charged each year would go up by 20%, taking the total revenue raised from reducing tax evasion to £7.5 billion.

The government is extending its Making Tax Digital programme, which aims to make the UK tax system fully digital. The Chancellor confirmed that sole traders and landlords with income over £20,000 would join Making Tax Digital from April 2028. 

There will also be an increase in late payment penalties for VAT and income tax self-assessment taxpayers as they join Making Tax Digital. From April 2025, penalties will be charged at 3% of the tax outstanding at 15 days, an additional 3% at 30 days, and a further 10% per annum from day 31.

The Universal Credit standard weekly allowance for a single person aged 25 will increase from £92 a week in 2025/2026 to £106 a week by 2029/2030. But the Chancellor also announced that the Universal Credit health element would be reduced to £50 a week in 2026/2027 and then frozen until 2029/2030.

These changes are part of reforms to incapacity and disability benefits which aim to save £4.8 billion from welfare spending in 2029/2030. The government says it aims to make the welfare system more pro‑work.

There was no announcement about changes to ISA allowances for the 2025/2026 tax year. However, the government is looking at options for reforms to ISAs. The Spring Statement said its aim was to help savers get better returns, while boosting retail investment and supporting growth.

The Chancellor said the government would work closely with the Bank of England to make sure the inflation target of 2% would be reached by 2027.

Inflation fell in February 2025 to 2.8%, down from 3% in January, according to the Office for National Statistics (ONS). It reached a peak of 11.1% in October 2022.

Many people are eligible for government support but don’t realise it. You may think you need to be out of work to claim anything – but that’s not the case. 

Check what government support you’re entitled to 

_{The information in this article was last updated on Wednesday 26 March 2025.}