Does the budget actually impact your life? Yes. Every decision that the chancellor makes directly impacts our finances. We round up exactly how you might be impacted in this newsletter.

Happy Halloween. Welcome back to Survival Guide, the Big Issue’s cost of living newsletter. It's Isabella McRae here, dropping into your inbox today with a breakdown of the most important parts of the chancellor’s budget – which will directly impact you and your bank account. 

A year and a half ago, I sent out the first edition of this newsletter the day after Jeremy Hunt had delivered his first ever budget. The context looked very different. We were still deep in the cost of living crisis and it followed a long line of Conservative budgets.

Specifically, it followed Liz Truss’ disastrous mini-budget.

Yesterday, when Rachel Reeves took to the stand, it was the first Labour budget in more than 14 years, and we’re at a point where inflation is actually at lower than normal levels.

It could have been a huge moment of change. Reeves promised it would match some of the greatest moments in her party’s history… but whether it actually achieved that is up for debate.

Reeves is all about stability and making “tough decisions” now in the hope that the economy will grow in the future, and the theory is that we will all benefit from it in the long run.

From (ever so slightly) cheaper pints, to a boost to minimum wage and school breakfast clubs, there was some positive news for ordinary people. But this was combined with a pledge to slash the welfare bill, which could impact the poorest and most vulnerable.

Here’s everything you need to know… 

If you have a story to share, we want to listen. Get in touch at isabella.mcrae@bigissue.com or share your story here.

A penny off pints and higher wages: What Rachel Reeves' budget means for you and your bank account

A boost for wages: The big news from Reeves’s budget is an increase in the minimum wage, which will be a boost for low-income workers. For over-21s, the national living wage is increasing from £11.44 to £12.21 an hour from April.

And 18-20-year-olds are getting a rise from £8.60 to £10, while apprentices are going from £6.40 to £7.55. That’s because Labour wants to get the minimum wage to the same level for all adults – by bigger increases for 18-20-year-olds.

Across the board, are set to rise faster than previously thought, but disposable income will stagnate. 

A penny off pints. Promising “a penny off the pint in the pub”, Reeves announced a 1.7% cut to draft duty. With the average pint in the UK costing £4.79, it’ll take a few pints to feel the benefit.

Increase to bus fares: The increase in capped bus fares from £2 to £3 has been slammed, coming alongside the freeze in fuel duty for drivers. The cap doesn’t apply to all routes, and was due to expire in December. Now it’ll be extended to December 2025, but made 50% higher.

What you pay will depend on where you live. Greater Manchester mayor Andy Burnham has committed to keeping the £2 cap.

Taxes for employers but not workers: Reeves stuck to her promise and didn’t raise taxes for working people, but one of her biggest budget money-makers was an increase in national insurance contributions paid by employers. 

But a “substantial amount” of this will be passed on through wages, the OBR found. Paul Johnson, director of the Institute for Fiscal Studies, estimated “probably three quarters or so of the increase will flow through to lower pay”.

Read our full analysis of how the budget will impact you.

Benefit changes, universal credit boost and crackdown on fraud: How Labour's budget impacts benefit claimants

Charities have raised concerns that the chancellor’s plans will come at a cost for benefit claimants.

The autumn budget announcement included a confirmation that the government will continue with the reforms to the work capability assessment set out by the Conservatives, restricting eligibility so hundreds of thousands people with health conditions will miss out on support in coming years.

Reeves also pledged to crackdown on welfare fraud, including through “access to bank accounts”, which will likely prompt fear among campaigners who have warned of the dangers of such a policy.

Benefits are only set to be uprated by 1.7% in April 2025, which will be the difference of just a few pounds for most claimants who are still struggling with the impact of the cost of living crisis.

And as expected, there was no mention of the two-child limit on benefits being scrapped, nor a U-turn on the winter fuel payment cuts.

But there was positive news too. Reeves has announced greater protections for universal credit claimants impacted by deductions due to debt. And there was a boost for unpaid carers which means tens of thousands more people can earn more while still being eligible for carer’s allowance.

Read all about it here.

In case you missed it

Stop stigmatising benefits claimants or thousands will stay trapped in poverty, Rachel Reeves told. Ministers must stop using cynical narratives around benefits to justify 'punitive' policy decisions, 63 organisations warned. Read more.

Universal credit top up of just £25 per week would 'benefit whole of society', study finds. Almost 95,000 fewer people would need mental health treatment if universal credit increased, a Mental Health Foundation report said. Get the story.

What Labour's autumn budget means for the housing crisis and homelessness. Reeves announced new cash to build more homes, changes to the Right to Buy scheme and long-term certainty for social housing providers. Find out more.

Labour's failure to raise housing benefit to keep up with rents is 'deeply worrying'. Labour has been under pressure to ensure housing benefit keeps pace with rising rents. Get the story.

'Where will it stop?': DWP to get 'direct access to bank accounts' in benefit fraud crackdown. A disability campaigner said this is a 'nightmare scenario' considering 'people's experiences at the hands of the DWP'. Here’s the latest.

'It could have been from Gordon Brown': Experts weigh in on how radical Labour's budget really is. The first Labour budget in 14 years was billed as a 'once in a generation' event. Does it put the UK on the path to real change? Read about it.

Like what you're reading? Let people know by going to our sign-up article and sharing it on your social networks!