The nastiest money surprises hidden in the Budget's small print - 'this one will sting'

John Healey gave his first Budget as Chancellor last week, and what a damp squib it was. It was a relief in one sense, after what seemed like successive fiscal calamities delivered by Rachel Reeves over the years, which have largely hammered the nation's finances. But I wouldn’t say Healey really offered much in the way of tangible help as the country braces for a renewed cost-of-living squeeze this winter. Now the dust has settled, here is an honest look at a few of the headline announcements – including a few nasty surprises hidden in the small print.

A £100 energy bill payment for households in council tax bands A-D, set to land in bank accounts in January. This will include most households exempt from council tax, and more information on eligibility will be published in due course. Every little helps, but £100 isn’t really going to put a dent in the monstrous rise in energy bills millions of households on variable tariffs face in January. Latest forecasts expect the price cap to rise anywhere between 16% and 28% , adding hundreds of pounds extra to annual bills.

Get on a cheaper fixed rate while you still can. Pensioners scored a win with a new £13,037 tax-free allowance. The new Pension Tax Allowance will protect next year’s triple lock increase from the Chancellor’s frozen £12,570 personal allowance threshold. The relief applies to pensioners of all ages across all income streams, including savings, Additional Pension, work and property, though earnings over £13,037 will be subject to a taper of £1 lost for every £3 earned.

Workers get no such luck. The frozen £12,570 threshold will cost average earners (£40,911) £88 this year by failing to track 3.5% inflation. Also slipped into the small print was another raid on savings. Tax rates on savings interest and property income will jump 2% next April to 24%, 44%, and 49% across the basic, higher and additional-rate tax bands. That'll sting. Healey also extended the electricity VAT cut to July, knocking an estimated £50 off Ofgem’s price cap from April 2027.

Meanwhile, daily gas standing charges – paid even if you burn nothing – will be scrapped and rolled into unit rates, hopefully sometime in 2027. While low-usage households stand to save an average of £45 a year, heavier gas users will actually see their bills rise. One move I truly commend the Chancellor for is the removal of the scandalous Carer’s Allowance earnings cliff edge. Unpaid carers who exceeded the weekly earnings limit of £204 – even by 1p – would lose their entire allowance.

From 2030/31, the abrupt loss of income will be replaced by a taper, in which the benefit will be reduced by £1 for every additional pound earned. What a long-overdue justice. Unpaid carers save the Treasury billions every year, often at the expense of their own health and finances. They should never have been penalised for earning an extra honest pound in the first place. If you have any questions about the Budget, please email onthemoney@express.co.uk .

Deal of the Week IKEA is offering two small cooked breakfasts for £3 to people signed up for its free Family Membership. It’s available every day from 9.30am to 11am until Thursday, December 31; just scan your membership at the checkout. Avoid 49% tax on savings If you’re someone facing the staggering 44% and 49% tax on savings interest, or even 24% for that matter, experts at AJ Bell have shared a few tips to help shield more of your wealth.

Firstly, do not ignore the power of an ISA (Individual Savings Account), which lets you save up to £20,000 per year tax-free. This annual limit will now remain in place for all ages, rather than drop to £12,000 for under-65s as announced in a previous Budget. You might also want to consider transferring assets to a lower tax-paying spouse. Basic-rate taxpayers can earn up to £1,000 per year in interest tax-free (outside of a tax wrapper, like an ISA), whereas higher-rate taxpayers can only earn £500.

Additional-rate taxpayers do not have an allowance and must pay tax on all of their interest earnings. Finally, consider putting money in NS&I's Premium Bonds , which let you save up to £50,000 tax-free with monthly chances to win up to £1 million. The downside is that with no guaranteed returns, you risk losing out on interest you could earn elsewhere.