As the UK grapples with a persistent cost of living crisis, Chancellor Rachel Reeves's 2025 budget has elicited a wave of reactions from households feeling the financial strain. From young families in London to recent graduates in Yorkshire, the measures—or lack thereof—are being weighed against the harsh realities of rising bills, frozen tax bands, and a challenging job market.
London Family's Childcare Dilemma
For Brett and Maria McDonald, raising two young sons in London without nearby family support is a constant financial juggling act. Brett, who runs the recently opened Cult Hairdressing salon, takes a minimal salary of just £12,000 a year to keep the business afloat amidst soaring service charges and business rates. Maria, a sales director in the tech sector, earns £70,000 with potential bonuses up to £50,000.
This bonus structure creates a precarious situation. A recent £5,000 bonus triggered an HMRC alert that the family was nearing the £100,000 tax threshold, at which point they would lose their entitlement to free childcare hours for their eldest son. "You start questioning whether working more actually means losing more," Maria states, describing the 40% tax on bonuses as "super punishing."
To manage costs, they employ a nanny for their younger son for only three short days a week and have chosen a nursery in Epping Forest for their eldest because it is cheaper than local options. While relieved that childcare policies were untouched in the budget, Maria expressed frustration at the frozen tax bands, which intensify the financial pressure. Brett adds that the family is "struggling to pay the bills and put food on the table," yet they remain committed to building their life in the UK.
Graduate's Frustration with Job Market Hurdles
In Calderdale, Yorkshire, 24-year-old Alex feels let down by a budget that failed to "speak" to him as a young person. A recent University of Manchester graduate with a first-class degree in Politics and Chinese, he has found the graduate job market impenetrable. He criticises the civil service fast stream and public sector recruitment for relying on automated questionnaires that prevent candidates from showcasing their skills.
"You never get in front of a person," Alex laments. "The only people doing well were those who graduated years ago and did master’s degrees." Living with his parents in Hebden Bridge because he cannot afford to rent, he describes property ownership as "impossible." He argues the budget lacked long-term vision and failed to address key issues like public transport funding, the NHS, and the financial barriers to postgraduate education.
Alex suggests the government should look to other countries that offer tax breaks for younger people and subsidised transport to spread opportunities beyond London and the South East, breaking down entrenched class barriers.
Pension Saver Discouraged by New Rules
Dean Harwood, an accountant from Accrington, is another citizen feeling the pinch from new budgetary measures. Approaching 50, he has been diligently saving for an early retirement by sacrificing 25% of his salary into his pension. This scheme currently offers tax and National Insurance (NI) savings for both him and his employer.
However, a change announced in the budget will introduce a £2,000 threshold on salary-sacrificed pension contributions from April 2029, after which NI will still be due. Harwood finds this move frustrating, coming at a time when people are being encouraged to save more for retirement.
"We’re meant to be encouraging people to get more informed about pensions and save more. There should be incentives to do that, not discouraging it," he argues. He worries that pensions are increasingly seen as a source for government revenue raids, undermining long-term financial security for workers and investment for the UK economy.
Mixed Reactions from Savers and Drivers
The budget brought a reprieve for some, like 68-year-old Trevor Adams from Manchester. A self-employed classic car restorer, he was concerned about potential cuts to the Cash ISA allowance. While the allowance was reduced to £12,000 for most from 2027, the Chancellor made an exception for those over 65, who can continue to save up to £20,000 tax-free. For Adams, who prefers the security of cash savings, this was "a good move."
Conversely, for Kate Coyle, an electric vehicle (EV) driver living in a Cotswolds village, the budget was a tipping point. The new 3p per mile charge for EVs, combined with the continued 20% VAT on public charging, could cost her an extra £300-£600 annually. Unable to charge at home, she relies on expensive public networks. "At the end of the month I don’t have an extra £50 to be taken," she says, adding that the new costs may force her to consider moving house.
Across these diverse stories, a common theme emerges: Britons are working hard but feel the system offers little relief, with mounting pressures and a sense of diminishing returns for their contributions.
