Spring Statement highlights: will Chancellor Reeves' 2025 statement leave UK residents better or worse off?

• Rachel Reeves' Spring Statement outlined key changes to Universal Credit and household income
• The Universal Credit standard allowance will increase, but the health element will be cut and frozen
• Household incomes are projected to rise by £500 on average, but inflation remains a concern
• A £1 billion investment in employment support aims to help people return to work
• Public services will see long-term investment, but personal benefits may not be immediate

Chancellor Rachel Reeves delivered her first Spring Statement today (March 26), at a crucial moment for the economy as the Government navigates economic uncertainty.

We’ve already rounded up the eight biggest announcements from the Statement here, but for many, the big question remains: Will these announcements put more money in my wallet, or will it be less?

So here’s a breakdown of the key announcements most likely to make a difference to your daily income, and what they mean for ordinary people - both in the short and long term.

Read more: Rachel Reeves' Spring Statement 2025 - 8 of the biggest budget highlights and news

Universal Credit changes: will you get more or less?

One of the most talked-about changes is in Universal Credit. For those who rely on this benefit, there’s some good news - but also some mixed messages.

Reeves confirmed that the Universal Credit standard allowance will rise from £92 per week in 2025-26 to £106 per week by 2029-30.

This increase will benefit those who claim Universal Credit, offering them more financial support to cover their everyday costs. So, if you're already on Universal Credit, expect to see an extra £14 per week from 2025 onwards.

But the increase comes with a controversial reduction - the Universal Credit health element, an additional amount for those with health conditions or disabilities, will be cut by 50%.

What's more, it will be frozen for new claimants, meaning that people applying for Universal Credit with health-related issues will receive less financial support, and that amount won’t increase with inflation or changes in the cost of living.

Read more: Spring Statement 2025: relieved but unconvinced - I’m still reeling from Labour's welfare cuts

Household incomes: a small boost for most people

In terms of household income, there’s some positive news. The Office for Budget Responsibility (OBR) projects that real household disposable income will grow at nearly twice the rate previously expected.

This means that, on average, households could be £500 better off per year compared to earlier projections from the last Tory budget.

For many households, this could mean a small but noticeable improvement in financial wellbeing - though it’s not a windfall. With inflation still a concern, it may take time before this increase feels like a real cash boost.

The OBR forecasts that inflation will eventually fall to 2% by 2027, but it may still take a few years for people to feel the full effects of this change in their daily lives.

Investment in employment support: what it means for you

The Chancellor announced a £1 billion investment in personalised employment support, with £400 million allocated to help the Department for Work and Pensions (DWP) implement reforms more effectively.

This is aimed at getting people back into work and offering tailored support to help people overcome barriers to employment.

For those who are unemployed or struggling to find stable work, this could mean more accessible and targeted help in securing a job.

The £1 billion investment is designed to create opportunities and provide more tailored support, but how quickly it will lead to meaningful change in people’s job prospects remains to be seen.

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Public services investment: how will it affect you?

The Government has also committed to increasing investment in public services, with an average £2 billion in capital spending each year to drive economic growth.

This includes the creation of 10 new technical excellence colleges and investment to train 60,000 construction workers.

While these measures focus on long-term economic growth, they could have a gradual impact on communities and local economies.

The development of skills in areas like construction might create new job opportunities in some regions, leading to more employment and improved public services in the future.

But most of these benefits are not expected to be immediately visible to the general public.

Will there be more or less in my wallet?

Elsewhere, many of the measures in the Spring Statement focus on long-term economic growth, meaning their immediate impact on your day-to-day life may be limited.

For instance, announced housing reforms, including plans to build 1.3 million homes over five years, could eventually help alleviate housing pressures, but these changes will take years to fully materialise.

So, after Rachel Reeves' Spring Statement, will you be better or worse off? The answer depends on your individual circumstances, but for most people, the impact will be mixed.

Some will see a small increase in income, while others - particularly those with health conditions - may find themselves receiving less support from Universal Credit.

Public services will benefit from increased investment, but it will take time for the effects of these announcements to be felt on the ground.

In the short term, there’s no big cash injection for the public. But in the longer term, these measures could help stabilise the economy.

But how soon the benefits materialise and who exactly will benefit the most remains to be seen.

What do you think of the measures announced in Rachel Reeves' Spring Statement? Do you think these changes will have a positive impact on your finances, or are you concerned about the cuts to Universal Credit? Share your thoughts in the comments.