Money saving expert Martin Lewis has identified what he calls 'three wins' for consumers in Chancellor Rachel Reeves' second Budget, delivered on Wednesday, November 26, 2025.
While the financial journalist stressed that these positives come alongside many financial challenges for households, he highlighted specific benefits relating to savings, energy costs, and consumer protection in the telecoms sector. Lewis also revealed he had secured a significant concession after private discussions with the Government.
Savings and the ISA Shake-Up
One of the most significant changes announced concerns Individual Savings Accounts (ISAs). From April 2027, the annual allowance for cash ISAs will be reduced from £20,000 to £12,000 for people under the age of 65.
Martin Lewis explained that the Government's stated aim is to encourage younger people to invest rather than rely solely on cash savings. However, he successfully argued for a crucial exemption. Individuals aged 65 and over will not see their cash ISA allowance cut, protecting older savers who typically hold more in these accounts.
Lewis stated this carve-out was a direct result of his intervention, where he pointed out the 'perverse policy' of penalising older savers whom the Government wasn't trying to influence. He described this protection for pensioners as a clear 'win', even amidst the broader reduction.
A Major Shift on Energy Bills
The Budget also addressed a long-standing concern of Martin Lewis regarding energy policy costs. From October 1, the Ofgem price cap rose by 2%, bringing the typical annual dual-fuel bill to £1,755, with a further 0.2% increase expected in early 2026.
Lewis, who has been highly critical of what he calls the 'pants cap', celebrated a major policy shift. The Chancellor announced that 75% of the levies on electricity bills will be moved to general taxation.
Lewis called this 'exactly what I've been calling for', explaining that general taxation is a more progressive system than energy bills, which are regressive and hit lower-income households harder.
Following a conversation with a senior Government member, Lewis revealed that this change is expected to reduce the electricity unit rate by roughly 3.4 pence per kilowatt hour and the gas unit rate by 0.3p per kilowatt hour from April 2026. He added that the Government intends to work with suppliers to ensure these savings are passed directly to consumers.
Government Action on Telecoms Pricing
The third 'win' involves heightened Government scrutiny on consumer protection, specifically within the telecoms industry. This follows what Lewis labelled an 'outrageous' move by O2, which increased bills for some customers by significantly more than their original contract terms.
Lewis confirmed that the Chancellor has sent a formal letter to the telecoms regulator, Ofcom, expressing concerns about such pricing practices. The letter, which was published on GOV.UK, signals the Government's intention to protect consumers from unexpected and substantial price hikes.
While O2 defended its actions, stating it had been 'fully transparent' and offered customers a right to exit without penalty, the Government's intervention marks a significant step. Lewis framed this as a win for consumer rights, potentially curbing similar practices across the sector.
Despite these positives, Martin Lewis cautioned that the overall Budget landscape remains tough for many, but these three areas offer some welcome relief and protection for UK households.
