Five ways the Spending Review could affect you
Last updated:
21 August 2025
In the same way that households set a monthly or weekly budget, the government regularly looks at how it can use its money in the best way and set departmental budgets. The latest Spending review was in June, and while most of the announcements will have longer-term effects, here are the five key areas where your everyday budget might be affected.
What is a ‘Spending Review’?
A Spending Review is the process the government uses to set all departments’ budgets for future years. For example the Department for Education looks after schools and early years provision. In June’s Spending Review, the day-to-day departmental spending is now set until 2028-29.
1. More children to get free school meals
If you live in England, get Universal Credit and have school-age children, they could soon be entitled to Free School Meals.
It was announced that there would be an extra £410 million per year by 2028-29 to expand Free School Meals eligibility to all pupils in England with a parent receiving Universal Credit. The change means that no matter what your household income, if you claim Universal Credit and have school-age children would be be entitled to Free School Meals. Currently, you need to both claim Universal Credit AND have a household income of £7,400 a year or under (after tax and not including any benefits you receive). If you think you could be entitled to Universal Credit but are not sure – see our guide Universal Credit Explained.
In Scotland all state school children up to primary five already automatically get Free School Meals and all primary school children in Welsh state schools get Free School Meals. In Northern Ireland parents claiming certain benefits can applyOpens in a new window on Education Authority Northern Ireland.
2. £3 bus fare cap is protected
Bus fare caps were introduced in 2022, limiting the cost of a single journey on eligible routes in England. The cap rose from £2 to £3 in January 2025 and the £3 cap was initially set to end 31 December 2025 but has now been extended by over a year to March 2027.
No matter where you live in the UK - whether you prefer to travel by car or use public transport check our guide on discounted travel to make sure you are getting all the discounts you’re entitled to.
3. Your child’s school might offer a free breakfast club
From the start of the summer term, 750 primary schools have started to receive funding to deliver a free breakfast club. This is the first phase of rollout which will eventually see free breakfast clubs in every primary school in England. The government estimates that this could reach more than 180,000 children - including 70,000 pupils from schools in some of the most deprived parts of the country.
Breakfast clubs are supervised places children can go before the school day begins. They give children a nutritious breakfast and allow parents to drop their kids off earlier and go to work. Some schools run their own paid for breakfast clubs. There is currently also a National School Breakfast Club Programme. This provides subsidised breakfast clubs to schools in disadvantaged areas.
4. Your energy bill could fall by up to £600
he Warm Homes Plan will help to cut bills by up to £600 for families in England by upgrading homes through energy efficiency measures, alongside installing heat pumps and other low-carbon technologies, such as solar panels and batteries.
If you have a household income of £36,000 a year or less or are a pensioner and live in an energy performance certificate (EPC)-rated D-G home, you could receive fully funded energy-saving and heating upgrades. If you think you might be eligible for the free home upgrade but aren’t sure, you can use the free eligibility checkerOpens in a new window on GOV.UK. Check our guide on How to reduce your energy bills to see the full range of help for all parts of the UK.
5. Help with winter fuel bills – if you are a pensioner
The winter fuel payment is a tax-free grant to help towards higher energy costs during the colder months.
Last year the payment - only went to low-income pensioners (those born before 22 September 1959) who were getting the mean’s tested benefit Pension Credit.
This year the tax-free payment worth up to £300 per household (£305.10 in Scotland), will go to all pensioners in England, Scotland, Wales and Northern Ireland who have an annual taxable income of £35,000 or less. While details of this change came ahead of the formal Spending Review announcement, it is part of the full Spending Review. See our blog on Winter Fuel Payment for more information.
