The UK Government revealed the 2026 Autumn Budget on Wednesday 28th October, which was expected to include policies that would help with the cost of living, welfare reform and other support measures tailored for people with disabilities and health conditions.
In summary, the key announcements include giving £100 to eligible households to help with the cost of energy bills, extending the electricity VAT cut, introducing measures to help young people access jobs and training, providing tax-free mileage rates and wider business measures for self-employed workers and entrepreneurs, investing additional funds into the NHS to help with winter pressures, expanding social and affordable housing, and changes to Carer’s Allowance.
Although many of these policies can still benefit people with disabilities and health conditions in some ways, the Chancellor, John Healey MP, did not provide any tailored support or further announcements on welfare, disability employment, Access to Work, special educational needs or accessible housing.
However, the government did mention it will respond to the Timms Review of PIP before the end of 2026, with a White Paper expected in early 2027 and potential changes to disability support and welfare assessments.
Read on to see more details on the 2026 UK Autumn Budget and how it may impact people with disabilities and health conditions:
1. Energy bills and the cost of living
Household Energy Payment: £100 from January 2027
The government is launching a £2.6 billion Household Energy Payment scheme, providing a £100 payment directly into bank accounts from January 2027. In England, eligibility is based on living in a property in council tax band A, B, C or D. The government estimates that up to 20 million households will benefit. Devolved governments will receive their share of the funding through the Barnett formula.
The Budget also extends the VAT cut on electricity until July 2027. This is expected to reduce the annual Ofgem energy price cap by around £50 in April 2027.
Other energy measures include:
- Abolishing gas standing charges, alongside targeted measures intended to ensure fair implementation.
- Introducing an Energy Debt Circuit Breaker to address energy debt.
- Reforming electricity standing charges, with further details to follow.
Many disabled people rely on electricity to power essential medical equipment, charge powered wheelchairs, refrigerate medicines and maintain temperatures necessary for their health.
However, learning disability charity Mencap has warned that the government’s £100 energy payment “will barely scratch the surface of today’s energy costs” for many people with a learning disability. The charity highlights how unavoidable disability-related expenses, including heating, specialist equipment and additional washing, can push families into financial hardship.
One family featured by Mencap faces annual energy and water bills of £6,000–£7,000, demonstrating why campaigners are calling for targeted energy support and a social tariff.
2. Disability benefits and welfare reform
The government has acknowledged the need for changes to disability benefits, but the 2026 Budget delivers no significant new measures to support disabled people and those with long-term health conditions.
The Budget recognises the findings of the interim Timms Review of Personal Independence Payment (PIP), which concluded that the current system is no longer fit for purpose and has failed to keep pace with changes in disability, health and employment.
The government plans to publish its response to the review, alongside its review of young people and work, before the end of 2026. A White Paper is expected in early 2027, with legislation anticipated later that year.
However, no immediate changes to PIP eligibility, assessment criteria or payment rates have been announced. Nor does the Budget introduce general increases to PIP, Disability Living Allowance or Attendance Allowance.
Other welfare measures include restrictions on Motability tax breaks, increased face-to-face health and disability assessments, and changes intended to help claimants in supported housing move into employment without losing financial support abruptly.
While the government has recognised that disability support needs reform, disabled people will have to wait for further announcements to discover what meaningful changes will be made.
Read: UK Welfare Reforms: How Changes Will Impact Disabled People
3. Employment, Access to Work and workplace support
Helping young people into employment
The Budget highlights the government’s intention to help young people who are not in employment, education or training (NEET).
The relevant measures include:
- Jobs Guarantee: opportunities for eligible 18–24-year-olds receiving Universal Credit.
- Youth Jobs Grant: £3,000 for businesses hiring eligible young unemployed people.
- Apprenticeship hiring payment: £2,000 for eligible employers taking on new young apprentices in England.
- Local apprenticeship services: £100 million over two years to expand support for young people seeking apprenticeships and employers creating
The government’s investment in employment opportunities and apprenticeships could benefit some disabled people, particularly young people seeking to enter the workforce. However, the Budget does not provide tailored employment support schemes for disabled people or outline any government-led initiatives to encourage employers to recruit disabled staff.
There is also no additional funding or specific support announced for the Access to Work scheme, which helps disabled people overcome workplace barriers through specialist equipment, adjustments and travel assistance. Without these targeted measures, disabled people may continue to face significant challenges entering employment, remaining in work and progressing in their careers, despite the government’s wider ambitions to increase employment.
In addition, the Budget makes no specific new funding commitments for SEND provision, Education, Health and Care Plans, school transport, specialist equipment or support helping disabled students transition into employment.
4. Self-employment and small businesses
Several announcements may be relevant to disabled people who run their own businesses or work on a self-employed basis.
Tax-free mileage rates
The government is making the following tax-free mileage rates permanent for employees and self-employed people using their own cars or vans for business journeys:
- First 10,000 business miles: 55p per mile.
- Business miles above 10,000: 35p per mile, increased from 25p.
The government estimates that someone driving 6,000 business miles annually could receive £120 in additional tax savings. Someone driving 15,000 business miles could receive up to £300 in additional tax savings from the changes.
Support for entrepreneurs
The Budget also includes wider business measures, such as:
- A new Capital Gains Tax Founders’ Relief from April 2027, offering a reduced 10% rate on up to £10 million of lifetime gains for eligible founders.
- Additional financial capacity for the British Business Bank to support innovative start-ups and growing businesses.
- A proposed Young Entrepreneurs Allowance to help successful applicants with living costs during their first year of business.
These measures are not specifically aimed at disabled entrepreneurs. Eligibility and the precise details of individual schemes will matter.
There is no specific new package in the Budget for disabled entrepreneurs who need additional financial support to establish or sustain a business because of disability-related costs.
5. Healthcare and access to treatment
The government has announced several healthcare measures in its 2026 Budget, including an additional £190 million for the NHS in England during 2026–27 to help manage winter pressures and other demands.
The government will invest a further £100 million to expand robotic-assisted surgery across England, aiming to increase procedures from 70,000 annually to 500,000 by 2035. The government says this investment will enable more patients to benefit from less invasive surgical treatments.
The Budget also removes VAT on medicines donated free of charge, supporting early access programmes that provide innovative treatments to patients with serious illnesses. This is intended to help maintain and expand access to potentially life-changing medicines.
These investments could benefit many disabled people and those living with long-term health conditions who rely on NHS services, surgical treatment and access to innovative medicines.
However, the Budget does not introduce specific new healthcare entitlements for disabled patients or announce additional funding for wheelchairs, powered mobility equipment, prosthetics or other disability-related aids. While the measures represent investment in healthcare provision, questions remain about whether disabled people will experience improvements in accessing the treatments, equipment and specialist services they need.
6. Housing and independent living
The government has announced an additional £1.5 billion to deliver around 10,000 social and affordable homes in England, alongside more than £40 billion in total investment in the Social and Affordable Homes Programme over the next decade. The funding will focus on Social Rent, particularly council housing, while further measures will address homelessness and temporary accommodation.
The investment could benefit disabled people seeking secure, affordable housing, particularly those who struggle to find suitable accommodation. However, the Budget does not specify how many new homes will be wheelchair-accessible, introduce dedicated grants for wheelchair users and other disabled residents requiring adaptations, or establish accessibility criteria for the new housing.
There is also no specific commitment to prioritise disabled applicants or provide additional funding for adaptations to existing properties. While the government is investing in expanding social and affordable housing, it remains unclear whether this will adequately address the shortage of accessible homes and the additional housing challenges faced by disabled people.
Read: Saving Money As A Disabled Person In The UK: A Comprehensive Guide
7. Changes to Carer’s Allowance
The government has announced plans to reform Carer’s Allowance, potentially benefiting thousands of unpaid carers who support disabled people and those with long-term health conditions.
Under the proposed changes, carers will no longer lose their entire benefit simply because their earnings exceed the weekly limit by a small amount.
Instead, a taper will gradually reduce their allowance as their earnings increase, allowing them to take on additional work or increase their hours without facing an immediate loss of financial support.
The government expects around 48,000 carers in England and Wales to benefit from the reform. This could provide greater financial flexibility for family members and friends who provide unpaid care, helping them balance their caring responsibilities with employment and other commitments.
The changes could also indirectly benefit disabled people who rely on support from family members and friends, by helping carers maintain their financial stability while continuing to provide essential assistance.
However, the reform will not take effect immediately. Implementation is planned for 2030–31, as the government needs to develop a new IT system to administer the changes. Consequently, unpaid carers will have to wait several years before they can benefit from the revised arrangements.
While the announcement represents a positive step towards addressing the financial challenges faced by working carers, it does not include a general increase in the Carer’s Allowance payment rate.
How do you feel Chancellor John Healey MP’s budget will impact you? Let us know in the comments box, on social media or contact us to share your personal story.