With the Autumn Budget just days away, Britons are being urged to take stock of their financial health. Chancellor Rachel Reeves is set to unveil a new suite of fiscal policies in the House of Commons on Wednesday, November 26, prompting experts to advise a proactive review of household spending.
The Prime Time for a Financial Health Check
Rajan Lakhani, a leading personal finance expert and head of money at the smart money app Plum, emphasises that a regular spend review is crucial. He advises households to scrutinise their outgoings to identify essential costs and ensure they are securing the best possible value on recurring expenses like insurance, mobile contracts, and streaming services.
For those struggling to find the time, Mr Lakhani offers a simple solution: integrate it into your monthly routine. He specifically recommends setting aside time on a weekday evening when interruptions are less likely and you can dedicate your full attention to managing bills and creating a budget.
Conducting Your Annual Financial Overview
Beyond monthly check-ins, the finance expert also advocates for a more comprehensive, yearly overview of your savings and investments. Modern banking apps and online statements make it easier than ever to access a full year's worth of financial data, providing a clear picture of your spending habits.
This annual deep dive helps you identify patterns, such as periods of higher expenditure like Christmas or times of increased income, perhaps from a tax rebate. Understanding these cash flow fluctuations is key to effective financial planning.
Autumn Budget and the State Pension Triple Lock
One of the most watched announcements in the upcoming Autumn Budget is the confirmation of the state pension triple lock. This government commitment ensures that pension payments increase by the highest of three measures: 2.5%, the rise in average earnings, or inflation.
If the triple lock is maintained for next April, as is widely anticipated, payments are set to rise by 4.8%. This would boost the full new state pension from its current rate of £230.25 per week to £241.30 per week.
Individuals can check their own state pension forecast to see how much they are on track to receive by using the official tool on the UK Government website.
