Seven Ways the Spending Review Could Affect Your Finances

All the talk of fiscal rules and departmental budgets might seem remote, but the latest Spending Review holds real implications for your household finances, from energy bills to pension payments.

This isn’t a Budget, so you won’t see immediate changes in tax policy. However, as experienced financial advisers know, shifts in government spending can have a longer-term impact on your financial plan. Here’s how.

1. Your Job and Income Could Be Affected

Public sector workers should take note. While defence, the NHS, and science sectors are receiving additional investment, other departments face cuts:

Transport: -5%

Foreign Office: -6.9%

Business and Trade: -1.8%

Environment and Rural Affairs: -2.7%

These reductions could translate into fewer jobs and tighter pay increases in affected areas. On the upside, large-scale infrastructure projects, such as the go-ahead for the Sizewell C nuclear plant, are expected to create thousands of new jobs.

This could impact your income security or career prospects. If you’re unsure how this might affect your financial future, book a meeting with a certified adviser to review your protection plans and long-term goals.

2. Expansion of Free School Meals

From September 2026, all children in England with parents receiving Universal Credit will qualify for free school meals. This is a significant support measure for working families on lower incomes.

While welcome, changes like these can shift household spending patterns. A financial advisor with expertise in budgeting and family planning can help you adjust your finances accordingly.

3. Council Tax Rises and Local Services

While investment has been pledged for community renewal projects—including libraries, swimming pools, and parks—council tax rises are likely in the coming years to help fund these initiatives.

Even small changes like increased bin collection fees or parking permits can accumulate. Now is a good time to find a financial adviser to help ensure your budget remains on track.

If you value clear, independent guidance, speak to an independent adviser today about how changes in local taxation might affect your cash flow.

4. Transport Investments and Fare Caps

The £3 bus fare cap in England will remain until at least March 2027. Major rail and tram infrastructure will also see funding, including Northern Powerhouse Rail and extensions to key networks.

While this may reduce commuting costs in the long term, the rollout will take time. If you’re factoring transport savings into a broader financial strategy, it’s wise to book a meeting with an adviser to make sure your assumptions are sound.

5. Winter Fuel Support for Pensioners

Last winter, only pensioners on pension credit received fuel support. That’s changing. Now, all pensioners in England and Wales with a taxable income of £35,000 or less will receive winter fuel payments of £200–£300.

This is welcome news for retirees or those nearing retirement. If you’re thinking about drawing your pension soon, a certified financial adviser can help structure your income efficiently, especially as energy prices remain volatile.

Not sure what benefits you’re entitled to? Find a financial adviser today to explore all your options.

6. Energy Bills and Nuclear Investment

The government will spend £17.8bn on Sizewell C, with the interest on that borrowed amount being covered through household energy bills. This adds around £1 per month for now, with the aim of reducing long-term energy costs through more domestic production.

The government also reiterated plans to improve home insulation, helping households cut energy use and bills.

A financial advisor specialising in home efficiency can advise how these improvements might increase property value and reduce long-term costs. Book a meeting with an adviser to explore your energy-related investment options.

7. Boost for Affordable Housing

A £39bn investment over the next decade is planned to improve access to affordable and social housing in England. The government aims to build 1.5 million new homes by 2030, with an additional £10bn allocated to Homes England.

Whether you’re a first-time buyer or planning to downsize, a top financial adviser can help you navigate the evolving property landscape. Housing is a major financial decision—ensure you’re making the best choices by booking a meeting with an independent adviser.

Final Thoughts

While these policy shifts may not grab headlines like a Budget, they hold meaningful implications for your finances—from pensions and protection to housing and council tax. The best financial decisions come from being informed and proactive.

If you’re wondering how these changes affect your personal situation, don’t wait. Book a meeting with a certified adviser today to ensure your financial plan remains aligned with your life goals.

Founded in 2017, Fintuity has fast become one of the only digital Independent Financial Advisers (IFA) in the United Kingdom.  Fintuity offers a wide range of financial advisory services including pensions, protection, investments and mortgage advice. The key difference is that as an exclusively digital service, we can offer significant savings and a service that is direct to you and on demand.