UK Budget reworks the state pension Triple Lock and puts £1.5 billion into affordable homes

28 October 2026

The Budget 2026 document on GOV.UK changes the way the United Kingdom's state pension is uprated. The Triple Lock is adjusted so that the state pension tracks earnings over time. The Government estimates this will save £15 billion a year by the late 2030s. The Budget also brings in a new Pension Tax Allowance. On housing, it adds £1.5 billion for about 10,000 social and affordable homes and confirms £4.7 billion for the Your First Home scheme. Online marketplaces will be required to collect VAT, and tariffs on more than 100 food and drink products are cut temporarily. The Bank Corporation Tax Surcharge is raised for a time from 3 per cent to 6 per cent.