What the Budget could mean for state pensions, private pots and lump sums

On 28 October, John Healey will deliver his first Budget as Chancellor.

So far, he has been more successful at keeping the contents under wraps than his predecessor Rachel Reeves was with her two Budgets.

However, given the UK’s straitened finances, speculation is still building about whether he and the Prime Minister will be forced into raising taxes.

Russell Brand leaves Southwark Crown Court, London, where he faces three charges of rape, indecent assault, and three counts of sexual assault, relating to six women. Picture date: Tuesday October 6, 2026. PA Photo. Photo credit should read: Jordan Pettitt/PA Wire

Comedian and actor Russell Brand has arrived at Southwark Crown Court today with his wife for the start of his trial on rape and sexual assault charges.

What are the charges against him?

Brand, 51, is accused of groping women and forcing them into sexual acts in allegations spanning 10 years from 1999 to 2009.

He denies three charges of rape, three counts of sexual assault, and one allegation of indecent assault, made by six women.

British actor and comedian Russell Brand arrives at Southwark Crown Court after further charges were added to his rape and multiple sexual assault case, in London, Britain, February 24, 2026. REUTERS/Toby Melville

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The story in pictures

LONDON, UNITED KINGDOM OCTOBER 12, 2026: British comedian Russell Brand arrives at Southwark Crown Court to stand trial on charges of three counts of rape, three counts of sexual assault and one count of indecent assault, to all of which he pleaded not guilty and denies the allegations againt him, in London, United Kingdom on October 12, 2026. (Photo credit should read Wiktor Szymanowicz/Future Publishing via Getty Images)
Russell Brand arrives at Southwark Crown Court, London, where he faces three charges of rape, indecent assault, and three counts of sexual assault, relating to six women. Picture date: Monday October 12, 2026. PA Photo. Photo credit should read: James Manning/PA Wire
LONDON, UNITED KINGDOM OCTOBER 12, 2026: British comedian Russell Brand arrives at Southwark Crown Court to stand trial on charges of three counts of rape, three counts of sexual assault and one count of indecent assault, to all of which he pleaded not guilty and denies the allegations againt him, in London, United Kingdom on October 12, 2026. (Photo credit should read Wiktor Szymanowicz/Future Publishing via Getty Images)

What happens now

  • The hearing began at 9.30am today.
  • Jury selection is expected to begin for a trial, which could last up to 10 weeks.
  • Brand pleaded not guilty to the charges during pre-trial hearings and is currently on bail.
  • The case is being overseen by High Court judge Mr Justice Bennathan.

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Closer look at accusations

  • Previous hearings have heard Brand accused of raping a woman in a hotel room at the Labour Party conference in Bournemouth.
  • He has also been accused of grabbing a TV worker’s breasts and forcing her into a sex act in a toilet, and kissing and groping a radio station worker.
  • Brand has denied all allegations and pleaded not guilty in a pre-trial hearing.

NHS rolls out new prescriptions alerts – what we know


The latest feature follows the launch of the “Amazon-style” prescription tracker on the NHS app, which officials said has been used by almost 2.9 million people.

EMBARGOED TO 0001 FRIDAY SEPTEMBER 26 File photo dated 05/01/25 of a person viewing the NHS app on a mobile phone. Parents and carers will be able to alternate between themselves and loved ones on the NHS app as easily as switching Netflix profiles, health leaders have said. A new family feature, currently being piloted, means people can apply to add another profile to their NHS app online instead of having to do it in person. Issue date: Friday September 26, 2025. PA Photo. Photo credit should read: Yui Mok/PA Wire

What you need to know

  • Millions of NHS app users in England can now get alerts on their phones and smartwatches when their prescriptions are ready. Thousands of pharmacies are already live with the service.
  • The update will help tackle unnecessary calls or premature trips to the chemist to pick up medication, NHS England said.
  • Health innovation minister James Frith urged people to enable push alert notifications on the NHS app to benefit from the new feature.

Embracing new technology

Henry Gregg, chief executive of the National Pharmacy Association, said it would free up staff time from answering phone calls and encourage more patients to use the NHS app.

“Pharmacies want to do all they can to embrace new technology and make the vital services they offer as easy and convenient as possible for patients to access,” he said.

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Welcome progress

It’s something many people have been asking for, and alongside other non-digital ways of accessing information and support, can help make it easier for patients to get the information they need in a way that works for them.

Rachel Power, chief executive of the Patients Association
Pharmacist giving recommendations to a senior customer at a pharmacy counter

The likely benefits cuts after PM hints at shake-up

Two reviews due this autumn will shape what comes next for universal credit and personal independence payments (PIP).

Andy Burnham said his Government will show “the same boldness as we did on the triple lock” in responding to youth unemployment.

What could Milburn recommend?


  • Alan Milburn, a former health secretary, is examining why nearly one million 16- to 24-year-olds are not in education, employment or training .

  • The group’s out-of-work and disability benefits reportedly cost the government around £8.1bn a year.

  • His review is expected to recommend wholesale changes to get young people into work and bring down the benefits bill.

  • But Burnham told the Labour conference that savings would come not from “crude cuts” but from “investing in people in their success”.

Universal credit health element

Ministers are considering removing the universal credit health element for under-25s and replacing it with an intensive back-to-work scheme.

Young people who fail to take up intensive support to help them into work will face benefit sanctions, The i Paper understands

Former health secretary Alan Milburn speaks to the media on the publication of the interim Milburn Report into Young People and Work, at West Library Youth Employment Hub, north London. Picture date: Thursday May 28, 2026. PA Photo. Photo credit should read: Jeff Moore/PA Wire

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Personal independence payments

PIP helps with the extra living costs of a long-term condition or disability, whether or not you work.

It is now claimed by four million people, with spending forecast to rise from £28.5bn this year to £41.5bn by 2030-31.

The Timms Review is looking at ways to improve PIP and reduce costs.

has reported that the Government is considering new eligibility criteria, though people with the most severe conditions would not be affected.

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What happens next?

  • Parliament is expected to debate the Timms proposals before the end of the year, with the Government responding soon after.
  • Milburn’s review is likely to be published shortly after the Budget, with savings not expected until 2027.
Screen grab of Prime Minister Andy Burnham speaking to Speaker of the House of Commons, Sir Lindsay Hoyle, as he arrives in the chamber ahead of his first Prime Minister's Questions in the House of Commons, London. Picture date: Wednesday September 2, 2026. PA Photo. Photo credit should read: House of Commons/UK Parliament/PA Wire

It is likely to require primary legislation, which provides scope for a Labour rebellion.

Watch more from The i Paper

Sacha Baron Cohen to star in Tarantino’s West End play

HOLLYWOOD, CA - FEBRUARY 28: Actor Sacha Baron Cohen attends the 88th Annual Academy Awards at Hollywood & Highland Center on February 28, 2016 in Hollywood, California. (Photo by Kevork Djansezian/Getty Images)

star Sacha Baron Cohen will headline when it premieres in London next year.

Quentin Tarantino said he was “keen with anticipation to give the West End a great night out”.

What we know so far

The production marks Tarantino’s first play written for the stage – which he will also direct.

Set in 1830s Europe, has been billed as a “rambunctious comedy of deception and disguise inspired by the grand swashbuckling epics of stage and screen”.

Sacha Baron Cohen as Borat during World Premiere of "Borat: Cultural Learnings of America For Make Benefit Glorious Nation of Kazakhstan" - Red Carpet at Mann's Chinese Theater in Hollywood, California, United States. (Photo by J.Sciulli/WireImage)
CANNES, FRANCE - MAY 17: Quentin Tarantino attends the "Nouvelle Vague" (New Wave) red carpet at the 78th annual Cannes Film Festival at Palais des Festivals on May 17, 2025 in Cannes, France. (Photo by Lionel Hahn/Getty Images)

What did Baron Cohen say?


Baron Cohen, best known for comedy characters including Borat and Ali G said: “Quentin called, I said yes before he even got to say his first ‘motherf**ker.”

This image released by Sony Pictures shows Brad Pitt, left, and Leonardo DiCaprio in Quentin Tarantino's "Once Upon a Time in Hollywood." (Andrew Cooper/Sony-Columbia Pictures via AP)
This image released by Amazon Studios shows Sacha Baron Cohen in a scene from "Borat Subsequent Moviefilm." (Amazon Studios via AP)

He added: “When the best director in the world calls, you don’t ask questions. I am beyond delighted that we will be losing our West End virginity together. I have made him [a] promise not to be gentle.”

How can you see it?

London, UK - November 18 2025: A bustling night scene on Shaftesbury Avenue in the West End, with pedestrians strolling past the brightly illuminated Lyric Theatre showing the musical Hadestown
  • It will premiere at the Phoenix Theatre in London’s West End on 18 March, 2027.
  • Tickets go on sale on Monday 12 October.

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Healey inherited about £24bn of “fiscal headroom” – the buffer to stay within the Government’s self-imposed rules on borrowing – from Reeves.

However, experts think this headroom has been squeezed to £14bn or less because of an increase in the UK’s borrowing costs in the wake of the US-Iran war.

It is possible that pensioners – as well as those saving towards their retirement – could be in the firing line when it comes to tax increases.

Here’s what you need to know about the Chancellor’s options:

The lump sum

Currently, most people can take up to 25 per cent of their private pension savings as a tax-free lump sum from age 55, rising to 57 in 2028.

Since April 2024, the limit for the lump sum allowance (LSA) has been set at £268,275.

It is possible that Healey could carry out a tax raid at the Budget by lowering this limit.

Speculation about Reeves making a similar move led to a surge in pension withdrawals last year, although she ultimately did not touch the cap.

Tax relief on contributions

When you pay into a private pension, you currently get relief at whatever income tax rate you pay.

Basic-rate taxpayers receive relief at 20 per cent, higher-rate taxpayers get it at 40 per cent and those in the additional-rate band enjoy 45 per cent relief.

In the past, various governments have toyed with the idea of setting a flat rate of relief.

Applying the basic rate across the board would raise as much as £15bn, according to the Institute for Fiscal Studies.

Alternatively, the Government could set a flat rate of say 25 per cent, which would boost the pension savings of lower-earning workers who pay basic-rate income tax, while cutting the savings of the highest earners.  

Polls suggest there could be public support for such a change. Last month, The i Paper reported a survey by Survation commissioned by the Fabian Society which found that 72 per cent backed reducing higher tax relief on pension contributions for higher earners.

Exempting the state pension from income tax

Whatever decision Healey ends up taking on the lump sum and contributions, the Budget will contain good news for some pensioners.

This summer, The i Paper was the first to report that Andy Burnham’s Government would stick to a pledge made by Reeves to exempt retirees who are wholly reliant on the state pension from income tax.

Because of the triple lock policy, the state pension is set to climb to more than £13,000 a year in April, putting it above the income tax personal allowance of £12,570 for the first time.

In his speech to Labour’s annual conference last month, Burnham reiterated this promise, confirming “our commitment to ensure that the low-income pensioners won’t be dragged into paying income tax in this Parliament”.

The Treasury will set out the detail of how the exemption will work in the Budget.

The triple lock

There will be no immediate change to the triple lock – under which the state pension increases each year in line with the highest of earnings growth, inflation or 2.5 per cent – in this Budget.

However, change is coming to reduce the cost of the policy.

In his conference speech, the Prime Minister announced that from April 2030 the lock will be adjusted, so that each year the state pension will increase every year by the highest of inflation or 2.5 per cent, while also holding its value relative to earnings over time.

The Government has said the change could save £15bn a year by 2040.

While the new policy will not come into force until April 2030, the Government has said it plans to legislate in advance for the change.

Other pension changes already on the way

Some changes to the taxation of pensions are already on the way.

From 6 April, 2027, most unused pension funds and death benefits will be included in a deceased person’s estate for inheritance tax purposes.

And from April 2029, the amount of national insurance relief workers can get by salary-sacrificing into their pensions will be capped at £2,000 a year.

The change means that middle and higher earners, or those who contribute a larger proportion of their earnings via salary sacrifice, will probably see a small reduction in their take-home pay.

Original source What the Budget could mean for state pensions, private pots and lump sums

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