Three Budget changes women can’t afford to ignore – and what to do next
The Budget always comes with a lot of fanfare and a lot of shouting. Meanwhile, you’re just trying to work out why your pay rise hasn’t helped, whether your savings are safe, and what on earth you’re supposed to do next. That’s what we care about here – what these changes mean for your life.
So we asked our Women’s Wealth Money Mentors to pick the changes they felt women needed to hear about most, not the ones that make the best soundbite, but the ones that will actually change your day-to-day or long-term wealth.
Three came up again and again:
- Your pay might be rising, but your take-home isn’t (and it’s not your fault).
- Cash ISA limits are being cut for under-65s from April 2027, nudging savers into investing.
- Landlord taxes are rising from April 2027, with further high-value property charges from April 2028.
The Government is quietly steering behaviour away from cash, towards investing, and tightening the screws on income from assets.
Let’s get into what it means for you.
1) Why your salary’s growing but your take-home isn’t
Money Mentor: Lorraine McFall
If your pay has gone up but your bank balance doesn’t feel any better, you’re not imagining it. The biggest reason is simple: income tax thresholds are still frozen.
What’s actually happening?
We all earn a certain amount before we start paying income tax, that’s your Personal Allowance. Normally, the Personal Allowance and tax bands rise over time to keep pace with inflation and wage growth.
But since the 2021/22 tax year, those thresholds have been frozen, and the Autumn Budget extended that freeze to April 2031.
So even a small pay rise can push more of your income into a higher-taxed chunk.
This is fiscal drag.
Why it hits your take-home pay
Because the thresholds aren’t moving:
- as your salary grows, more of it is taxed at 20%, and for some people 40% or 45%.
- your tax bill rises faster than your pay packet.
- the extra gross pay gets quietly swallowed by deductions.
In short: wages are moving, but tax thresholds aren’t. Until that changes, pay rises will keep feeling oddly… underwhelming.
What you can do about it
You can’t change the thresholds, but you can make sure your pay rise works harder:
- Check your payslip after a rise. How much are you actually keeping?
- Use tax-efficient options where they suit you, like pension contributions or salary sacrifice.
- If you’re near a tax-band edge, an extra nudge into your pension can stop a chunk tipping into the next rate.
It’s not about being clever. It’s about not letting a raise vanish without you noticing.
Fiscal drag is already happening, but it also sets the tone for what’s coming next: the Budget isn’t raising headline rates much, it’s tightening where and how your money gets taxed.
Which brings us to saving.
2) Cash ISA limit cut: is the Government basically telling us to invest?
Money Mentor: Verity Brown
The latest UK Budget reduces the annual Cash ISA limit from £20,000 to £12,000 for under-65s, starting in 2027. You’ll still be able to use the full £20,000 allowance across all ISAs, but less of it can now sit in cash.
Why has this happened?
There are two main drivers behind the change:
Encouraging direct investment. Most of us already invest indirectly through our pensions, but this move nudges people to take a more active role.
Boosting the UK economy. Shifting more savings into investments supports growth and productivity.
What does this mean for savers?
The restriction is designed to push people towards greater diversification. That can help reduce risk:
Inflation risk is the biggest threat to cash savings.
Market risk is the challenge with stocks and shares.
Balancing the two is key. But if you’re a woman who regularly maxes out your Cash ISA, you’ll now be compelled to invest directly and being forced into financial decisions rarely feels empowering. Our concern is that many women may have to start directly investing without feeling fully informed or confident.
Where cash still makes sense
Cash remains essential for:
Emergency funds – we recommend six months of committed spending in an easy-access account.
Planned spending within five years – where certainty matters more than growth.
Beyond that, investing is usually the smarter choice to beat inflation and harness the power of compound interest, the “secret sauce” behind pension growth.
Our advice
See this as an opportunity, not just a restriction. Learn how Stocks & Shares ISAs work and build confidence before 2027. Our free How to Invest course is a great starting point, helping you choose the right fund for your goals and circumstances.
3) Landlord tax rise: should you hold, sell, or rethink?
Money Mentor: Yuliya Osipova
With landlord taxation rising again, many investors are asking: “Is being a landlord still worth it?” Whether you own one buy-to-let or a larger portfolio, these changes could materially hit your rental income, cashflow, and long-term strategy.
What’s changing (from April 2027 onwards)
- Property income tax rates rise by 2% for unincorporated landlords, taking effective rates to 22%, 42% and 47%.
- Mortgage interest tax credit increases to 22% for mortgaged properties.
- New income ordering rules apply, which stop landlords choosing to have property income taxed first.
- From April 2028, England introduces the High Value Council Tax Surcharge (HVCTS) on properties worth £2m+ (based on 2026 values), paid by owners so landlords, not tenants.
- If you hold property in a limited company, dividend tax rises from April 2026 affect how you extract profit.
Bottom line: being a landlord is getting more expensive, and it demands a more professional strategy.
Your options
Hold
Holding may still be right if:
- mortgage debt is low
- rental demand is strong
- long-term capital growth is part of your plan
- you can ride out short-term cashflow pressure
But holding doesn’t mean doing nothing. You might:
- review your mortgage for cashflow improvements
- check whether your structure or income split reduces tax
Sell and release capital
Selling may be pragmatic if:
- rates have crushed your profit
- yields no longer stack up
- you want to simplify near retirement
- you’d rather diversify elsewhere
Just don’t sell blind. Model:
- capital gains tax
- timing and exit fees
- your after-tax position, not just the headline numbers
Rethink and future-proof
A middle path could include:
- selling an underperformer to strengthen what’s working
- shifting property type (HMOs, holiday lets, commercial, each with different rules)
- aligning property with pensions, ISAs, and inheritance planning
So… what’s right for you?
There’s no one-size-fits-all answer. The tax landscape has changed, but opportunity hasn’t disappeared. The key is:
- know how the rules affect your numbers
- model holding vs selling properly
- align property with your wider plan
A tax rise isn’t a sign to panic. It’s a sign to plan.
The bigger picture (and why this matters for women)
Put these three changes side by side and the direction is clear:
- More people pulled into paying more tax via frozen thresholds.
- Less room to shelter big cash savings so savers are nudged into investing.
- Higher tax on property income and high-value homes.
Same story, different wallets: earned income is squeezed, cash becomes less attractive, and asset income is taxed harder.
Women feel this sharply because we’re more likely to have:
- patchier earnings paths
- bigger need for cash buffers
- less time to “ride out” delayed financial learning
That’s why acting early matters so much.
Your next-step action menu
Pick the one that fits you best:
If you’re employed and your take-home feels stuck
- Check your payslip after any rise – what’s the real increase?
- If you’re near a tax band edge, consider whether pension/salary sacrifice helps.
- Don’t assume a raise = more breathing room. Run the numbers.
If you’re a committed saver using Cash ISAs
- Keep cash for emergencies and near-term plans.
- Start learning Stocks & Shares ISAs now, before 2027.
- Use the time to build confidence so you’re not forced into decisions later.
If property is part of your wealth plan
- Model your post-2027 rental cashflow with the new rates.
- Review your structure and mortgage strategy.
- If selling is on the table, decide based on after-tax outcomes, not fear.
You can’t control what the Budget does next, but you can control your next step. Plan early, and we’re here if you want a hand.