2025 Autumn Budget Breakdown: What It Means for Jobseekers, Employees & Candidates

The Autumn Budget 2025 may have been delivered with businesses in mind, but its impact will be felt just as strongly by employees, jobseekers and candidates.

From wage increases to frozen tax and student loan thresholds, the changes announced by Chancellor Rachel Reeves will influence:

• Take-home pay
• Job security
• Hiring trends
• Competition for roles

Understanding what’s changing and how to respond, is key to protecting your career and standing out in the job market.

Key Budget Changes That Affect Workers

• National Living Wage rising to £12.71/hour (April 2026)
• Income tax thresholds frozen until 2031
• National Insurance thresholds frozen
• Student loan repayment thresholds frozen (Plan 2)
• Changes to pension salary sacrifice rules from 2029
• Removal of tax relief on homeworking (April 2026)

While minimum and living wage increases are welcome, many workers will find that:

• More of their income is taxed
• Pay rises don’t stretch as far as expected
• Disposable income remains under pressure

This is due to threshold freezes, often referred to as “stealth taxes”.

From April 2027, Plan 2 student loan repayment thresholds will be frozen at £29,385.

This means:

• Graduates start repaying sooner
• A larger proportion of income goes to repayments
• Lower-paid graduates are hit hardest

For early-career professionals, this makes career progression and salary growth more important than ever.

While some employers may reduce hiring due to cost pressures, others will:

• Focus on hiring potential over experience
• Increase investment in apprenticeships and training
• Be more selective, but still actively recruiting

Demand is likely to remain strong in areas such as:

• IT & software
• Engineering & technical roles
• Finance, procurement and specialist HR

With employers becoming more cautious, candidates should focus on:

• Demonstrating Commercial Value – Show how your work saves time, reduces costs or drives growth.
• Upskilling & Training – Certifications, short courses and professional development can set you apart.
• Tailoring Applications – Generic CVs will struggle. Tailor your experience to each role.
• Working with Specialist Recruiters – Recruitment agencies often have access to roles not advertised publicly and can advise on market expectations.

The Autumn Budget doesn’t mean you shouldn’t move – but it does mean you should be strategic.

Before making a move, consider:

• Total package, not just salary
• Pension and benefits
• Job security and progression opportunities

The Autumn Budget 2025 signals a more competitive, value-driven job market.

Candidates who understand employer pressures and position themselves as solutions, not costs will be best placed to succeed.