UK Money: ISAs, Pensions, Stamp Duty and Bills — 2026-09-20

Top developments

State pension to hit £13,000 amid triple lock debate

New wage growth figures published on September 15 indicate the state pension will increase by 3.9% under the triple lock mechanism, pushing the full New State Pension to approximately £13,000 annually. This rise places the pension above the £12,570 personal tax-free allowance, meaning millions of retirees may face tax liabilities on their income. Business Secretary Jonathan Reynolds refused to rule out changes to how this is taxed, keeping pressure on the government ahead of the Autumn Budget.

Property sales plunge 20% after stamp duty changes

Data released on September 18 shows residential property sales in England and Wales dropped nearly 20% in the year to March 2026. Mortgage brokers attribute this sharp decline to the increased tax burden following the stamp duty threshold changes introduced earlier in the year, suggesting higher costs are acting as a significant barrier for buyers.

Bank of England holds rates at 3.75%

The Bank of England maintained the base rate at 3.75% on September 17, marking the sixth consecutive meeting where rates have remained unchanged since December 2025. While this provides stability for variable-rate mortgage holders, it offers no immediate relief for savers seeking higher returns, with average mortgage rates hovering around 7%.

First-time buyers stretching deposits

ONS figures released on September 18 highlight that first-time buyers accounted for the majority of mortgage sales but are increasingly relying on smaller deposits and borrowing a larger proportion of property values. This trend indicates heightened financial risk for new homeowners as affordability constraints tighten.

Local view

Local Polish-language media serving UK residents are focusing heavily on the tax implications of the rising state pension. Outlet bham.pl reports that the full New State Pension could reach £13,036 GBP annually, exceeding the frozen personal allowance of £12,570 GBP. This shift is causing concern among migrant households who may now face unexpected tax bills on their retirement income. Additionally, bham.pl highlights that energy bills are projected to rise significantly, potentially reaching £2,150 annually per household, adding further strain to household budgets.

Context & numbers

• State Pension: Expected to rise 3.9% to ~£13,000/year starting April 2027.
• Property Sales: Down nearly 20% year-on-year to March 2026.
• Interest Rates: Held at 3.75% since December 2025.
• Energy Costs: Current Q3 cap is £1,663/year; projected to rise to ~£2,150/year by January 2027 due to anticipated increases.
• Personal Allowance: Frozen at £12,570 until 2028.

On the radar

• Autumn Budget (October 28): Speculation continues regarding potential changes to Capital Gains Tax (CGT), inheritance tax, and ISA rules. Chancellor Rachel Reeves has not ruled out tax rises.
• ISA Reforms: The government has confirmed a 22% charge on interest earned on cash held within Stocks & Shares ISAs from April 2027, aimed at preventing workaround usage of the lower Cash ISA limit.
• Triple Lock Review: Political pressure is mounting to reform or scrap the triple lock, with critics arguing it is unaffordable given the rising cost of living and demographic shifts.