Spending Review 2025: What it means for families and your wallet
From free school meals to higher council tax – here’s what parents need to know
It’s not a Budget, but the government’s latest Spending Review packs a punch for parents – with new funding promises and policy changes that’ll shape everything from school dinners to your commute.
Here’s what Chancellor Rachel Reeves’ plans could mean for your family life over the next few years.
Free school meals for more children
One of the biggest changes for families is the expansion of free school meals in England. From September 2026, every child whose parents receive universal credit – regardless of their earnings – will be entitled to a free lunch at school.
This change scraps the current income cap of £7,400, which many families found too restrictive. It brings England more in line with Wales and London, where all primary school children already receive free meals, and Scotland, where five years of primary pupils are eligible.
For families balancing rising food bills, this could be a major help.
Council tax is going up – but so is funding for your local library
Communities are set to get a revamp, with money promised for upgrading 350 local facilities – think libraries, parks, swimming pools and youth clubs.
But there’s a catch: the documents hint strongly at future council tax rises to help fund this. So while you might notice nicer public spaces or smoother services, you’ll likely be paying more for your garden waste collection or parking permit, too.
Scotland, Wales and Northern Ireland will also see a funding boost via the Barnett formula – £52bn, £23bn and £20bn respectively from 2026–2029 – but how they spend it is up to their devolved governments.
£3 bus fares here to stay – and better transport is coming
Good news for families relying on public transport: the £3 cap on most bus fares in England is staying until at least March 2027.
That’s not all. The government is putting billions into rail and tram networks, including the long-awaited Northern Powerhouse Rail from Liverpool to Manchester, and upgrades to services in the South West, West Yorkshire and the Midlands.
For those juggling nursery runs, school drop-offs and commutes, better (and cheaper) transport could be a lifeline.
Energy bills might shift – but not just yet
Sizewell C – a new nuclear power station in Suffolk – is getting a £17.8bn cash injection. While it won’t be up and running for a while, the investment is expected to bring long-term savings on energy bills.
In the meantime, the interest on that government borrowing is being added to household energy bills, amounting to about £1 a month.
The government has also re-committed to insulating homes, which could lower bills and keep homes warmer come winter.
Winter fuel payment returns for more pensioners
If your parents or in-laws are on a modest income, they might benefit from the revived winter fuel payment scheme. After being limited last year, it’s now back for all pensioners in England and Wales earning up to £35,000.
That’s £200–£300 per household towards heating costs – a welcome bit of relief for many older people, especially if they help with childcare or housing for the grandkids.
More affordable housing (but it’ll take time)
With £39bn pledged for affordable and social housing in England, the government aims to build 1.5 million new homes by 2030. That includes an extra £10bn for Homes England.
While this won't solve housing pressures overnight, it could improve options for families stuck in cramped rentals or trying to get on the property ladder.
Job security in the public sector might feel shaky
If you or your partner work in the public sector, you may see some changes. Sectors like defence and the NHS are set for big funding boosts, but others – like the Home Office, Transport, and Environment – face cuts of up to 6.9% annually over the next three years.
These changes could mean pay freezes or job uncertainty in some areas, although long-term infrastructure projects like Sizewell C are expected to create new opportunities too.
As always with spending plans, the devil’s in the detail. Some changes won’t kick in for years, and others might shift after the next Budget. But for families, there are clear signs of both support and squeeze – and it’s worth staying clued up.
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Ruairidh is the Digital Lead on MadeForMums. He works with a team of fantastically talented content creators and subject-matter experts on MadeForMums.