Today, Chancellor Rachel Reeves delivered her second Budget, and if you're a woman trying to make sense of what it means for your money, I've got you.
Let me be clear from the start: Budgets are rarely exciting. They're full of jargon, percentages, and policies that sound designed to confuse rather than inform. But buried in today's announcement are decisions that will directly impact your finances, whether you're a working mum, a young professional, or someone just trying to build a secure future.
So let's cut through the noise and talk about what actually matters.
The controversial two-child benefit cap will be lifted
This is huge. From April 2026, the two-child benefit cap – which has kept hundreds of thousands of children in poverty – will be scrapped. If you're unfamiliar with it, this cap meant that families couldn't claim child tax credit or Universal Credit for more than two children, regardless of how many kids they had.
The impact has been devastating, particularly for women. Single mothers, women who've left abusive relationships, women who've had children from different partnerships – they've all been penalised by this policy.
Lifting this cap will lift 450,000 children out of poverty. That's not just a statistic – that's 450,000 futures changed. For the women raising these children, it means breathing room. It means being able to afford school uniforms, food, and heating. It means dignity.
And the so-called "rape clause"? It forced women to prove if their third child was conceived through rape or in a coercive relationship just to access an exemption. They had to disclose deeply personal trauma to approved professionals – social workers, healthcare providers – and have it verified to receive support. It was invasive, dehumanising, and cruel.
By scrapping the entire two-child cap, this budget makes the rape clause obsolete.
Why won't the PM scrap this inhumane policy?
The minimum wage is rising
The national living wage is increasing by 4.1% to £12.71 per hour. On paper, this is good news – women make up the majority of minimum wage workers, so more money coming in should help.
But what is given with one hand may be taken by the other because employers are also facing higher National Insurance contributions from April 2025. Some businesses absorb the costs, others pass them to customers through higher prices, and many cut hours or jobs where they can. So yes, your hourly rate goes up, but you might find yourself working fewer hours. And everything you buy? That's likely getting more expensive, too.
Energy bills are coming down
Energy costs have been crushing households, and women – particularly single mothers and older women living alone – have felt this hardest. The budget announces an average £150 cut to energy bills next year by removing green levies.
I know £150 doesn't sound life-changing, but when it comes to financial pressure, it's cumulative. Every bill that goes up, every cost that increases, it all adds up. So yes, £150 matters. Combined with frozen rail fares and continued fuel duty freezes, these are tangible cost-of-living reliefs.
It's been 50 years since women in the UK were legally allowed to apply for a mortgage without a male guarantor. But the home ownership gap is still very much a thing.
A lifeline for young women starting out
There's over £1.5bn going into employment and skills support, and this actually matters if you're a young woman trying to get your foot in the door. The Youth Guarantee means if you're 18-21, on Universal Credit and have been job-hunting for 18 months, you'll get a guaranteed six-month paid work placement. Not an unpaid internship that only wealthy kids can afford: paid work.
And there's £725m for apprenticeships, with full funding for under-25s at small businesses. For young women who've been told university is the only route, or who can't afford three years without earning, this opens doors. Trades, tech, finance – all suddenly more accessible. It's not everything, but it's something real.
Income tax thresholds are frozen
Income tax thresholds are frozen until 2031. Let me explain why this matters, because it's sneaky.
When tax thresholds are frozen, but wages (hopefully) rise with inflation, more of your income gets taxed. You might get a pay rise, but a bigger chunk goes to tax. It's called fiscal drag, and it means you feel poorer even when you're technically earning more.
For women, who already earn less than men on average and are more likely to work part-time, this stealth tax can be painful. You're working hard, maybe finally getting somewhere, and the tax system quietly takes more of your money.
Reforms for cash ISAs
From April 2027, there's a significant change to ISAs. You'll still have a £20,000 annual limit, but £8,000 of it must go into investments rather than cash. If you're over 65, you're exempt. I think this is great! Women hold far too much cash and need to put more money to work in investments.
But here's my concern: for women who've been told investing is risky, complicated, or "not for people like me," it might feel like being pushed into something they don't understand.
So the intention is good – cash loses value to inflation, investments typically grow over time. But the execution matters. We need education, support, and accessible platforms like Propelle to help women feel confident about this shift. Otherwise, it's just another financial hurdle.
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Pension changes
From April 2029, salary sacrifice pension contributions above £2,000 annually will no longer be exempt from National Insurance. This particularly affects higher earners who've been using salary sacrifice as a tax-efficient way to boost their pensions.
For women climbing the career ladder, this is a blow. We already face the motherhood penalty - earning 42% less five years after having a first child. We're already playing catch-up with our pensions. Now, one of the tools to accelerate pension saving has become less attractive.
What the Budget really tells us...
The budget gives with one hand and takes with the other.
Lifting the two-child benefit cap? Genuinely transformative for women at the sharp end of poverty. Cutting energy bills? Real, tangible help. Funding apprenticeships for young women? Genuinely helpful. But frozen tax thresholds and pension changes? They disproportionately affect women trying to build financial security.
The state pension will rise under the triple lock, which helps older women who are more likely to have inadequate pensions. But younger women watching these changes need to understand: you can't rely on the state to secure your financial future.
This is why building wealth matters. This is why investing matters. This is why understanding your money matters. Because when policies shift – and they always do – you need your own financial foundation to weather them.
Your financial future isn't just about what the government does or doesn't do. It's about the choices you make with what you have. Start now, start small, but start.
Ayesha Ofori is a financial and property expert and the Founder & CEO of Propelle, the UK's first investment platform for women.
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