Autumn Budget 2025
Chancellor Rachel Reeves has delivered the Autumn Budget for 2025. Here we summarise the key areas that impact the NHS and its workforce.
Tax
- Tax and National Insurance thresholds frozen until 2030-31.
National Living Wage
- From April 2026, the minimum wage for over 21s, known officially as the National Living Wage, will rise 4.1 per cent from £12.21 to £12.71 per hour. Workers aged between 18 and 20 will see an 8.5 per cent rise from £10 to £10.85 an hour
Implications for the NHS
The current rate of pay for entry level Band 2 is £12.51 per hour and the entry point to Band 3 is £12.75.
While there is a commitment from the government to return to a cycle that confirms pay awards in time to be effective from April, this may not be possible for April 2026.
If no pay award is announced in time for implementation on 1 April 2026, NHS Employers will seek an interim measure from government to ensure that the entry level pay points are compliant with legislation.
NHS spending
- £300 million investment in technology to improve patient services.
- 250 new neighbourhood health centres, with over 100 to be delivered by 2030.
Fuel duty
- Fuel duty remains frozen for a further five months until September 2026. After this point, the five pence cut first brought in back in 2022 will be reversed in a staggered approach.
- From April 2027, fuel duty will be increased in line with the Retail Prices Index (RPI).
Further information
A member briefing with summary and analysis of the areas that impact health and care is available on the NHS Confederation website.
You can read the Autumn Budget 2025 report in full on the gov.uk website.
