Rachel Reeves’ 2025 Budget: £550 Pension Boost, £15bn Welfare Shake‑Up and New Tax Rises Explained
Chancellor Rachel Reeves will announce a £550 above-inflation state pension rise for 13 million pensioners and scrap the two-child benefit cap in Wednesday’s Budget. The £15bn welfare expansion will be funded by new tax increases on higher earners and workers. The moves come as the UK faces downgraded growth forecasts and a £20bn fiscal shortfall.