Spring Statement 2025 – at a glance

id

On 26 March, Chancellor Rachel Reeves delivered her Spring Statement. If you’re wondering whether it contained big changes to tax and pensions, the answer is no. Here’s a quick rundown of some of the key takeaways.

1. Not much update on pensions

No big pension changes were announced in 2025’s Spring Statement. 

In her Autumn Budget last year, the Chancellor said that pensions could be subject to Inheritance Tax from 2027. The government is still looking at the detail of how this will work, and there was no further update on this (or Inheritance Tax in general) in the Spring Statement.

No new changes were announced to the State Pension, either. 

Although it wasn't mentioned in the Spring Statement, we do know that the government is due to announce the next phase of their plans to improve pensions for people in the UK in the coming months.

2. No changes to the tax you pay

Income tax bands, National Insurance rates, and VAT haven’t changed.

The Chancellor also didn’t announce any change to the ‘personal allowance’ (the amount of income most people can have in a given tax year before they need to pay income tax). That’s still £12,570 and is due to stay frozen at this level until 2028. It’s worth noting that if wages continue to rise, more people could start paying income tax as a result. 

3. ISAs reform could be on the horizon

The Chancellor indicated that the government will look at making changes to Individual Savings Accounts (ISAs). But she hasn’t yet said what potential changes could be.

Other things to keep in mind

Rachel Reeves has committed to having only one ‘fiscal event’ per year. She used her Spring Statement to give an update on how the economy has changed since the Autumn Budget, what the economy could look like in future, and the government’s plans to bring down inflation. If there are going to be major changes, these will probably be announced in a Budget later in the year.

And do remember, it’s normal for financial markets to move up and down. So if you’re wondering how things like current events could impact your pensions or other investments, you can read our article about market fluctuations.

 

The information here is based on our understanding in March 2025 and should not be taken as financial advice. 

A pension is an investment. Its value can go down as well as up and could be worth less than was paid in.

Your own personal circumstances, including where you live in the UK, will have an impact on the tax you pay. Laws and tax rules may change in the future.