Prime Minister Policy Announcements: What They Could Mean for Your Money, Home and Future

Andy Burnham has set out his priorities after becoming Prime Minister, with plans covering housing, taxes, pensions, employment and public services. Here’s what has been announced so far, what it could mean for everyday households and what is still yet to be confirmed.

Andy Burnham’s priorities at a glance

Following his appointment as Prime Minister, Andy Burnham has outlined several key pledges aimed at tackling the cost of living, housing shortages, regional inequality and employment. While some proposals will require legislation and further funding details, they provide an early indication of the government’s direction.

More affordable homes could improve access to the property market

One of Burnham’s biggest commitments is to deliver the largest council house building programme since before the war. He has also called for England’s £39 billion affordable housing budget to focus more heavily on social housing.

What this means for you

For first-time buyers, increasing the housing supply could help improve affordability over time, although these changes won’t happen overnight. Renters could also benefit if more affordable and social housing becomes available, easing pressure across the wider housing market.

According to the Office for National Statistics, the average UK house price remains more than 7 times average annual earnings, highlighting why housing affordability continues to be one of the country’s biggest financial challenges.

No increases planned to the main tax rates

Burnham has said he intends to honour Labour’s commitment not to increase the main rates of:

• Income Tax
• VAT
• National Insurance

He has also suggested he would like to increase the income tax personal allowance (currently £12,570), although no timeline has been confirmed.

What this means for you

For now, most employees shouldn’t expect changes to the amount of Income Tax they pay. If the personal allowance is increased in the future, more of your earnings could become tax-free, meaning slightly more money in your pocket each month.

However, these proposals have not yet been confirmed.

Could a wealth tax be introduced?

Burnham has not ruled out introducing a wealth tax in the future, saying the country may need “to ask for a little more” from those with greater wealth. If one were introduced, it would likely affect people with significant assets rather than the average household. Until more details are published, it remains a policy possibility rather than a confirmed change.

More support to help people into work

The government wants to reduce the number of people claiming benefits by improving employment support instead of making large cuts.

Plans include:

• Better mental health support
• More help finding work
• Guaranteed work placements for 16 to 18-year-olds

What this means for you

If implemented, these measures could make it easier for young people to gain work experience and help more people return to employment with additional support.

Employment continues to be closely linked to financial wellbeing, with secure work providing greater financial resilience and long-term stability.

State pensions remain protected

Burnham has confirmed he intends to keep the State Pension Triple Lock. The Triple Lock means pensions increase each year by whichever is highest:

• Inflation
• Average earnings growth
• 2.5%

What this means for you

If you’re already receiving the State Pension, or planning for retirement, this provides reassurance that pensions should continue to rise each year, helping retirees keep pace with rising living costs.

Tackling rough sleeping

The government has pledged an additional £340 million over five years to help end rough sleeping in England through housing and support services. While this won’t directly affect most households financially, it represents a wider investment in housing and local communities that could reduce pressure on public services over the longer term.

What should you do now?

Many of these announcements represent the government’s long-term ambitions rather than immediate changes. Before any major policy affects your finances, it will need to pass through Parliament and be implemented.

For now, the best approach is to stay informed as policies develop, review your financial plans regularly or seek advice before making significant financial decisions based on political announcements.

Need help understanding how these changes could affect you?

Political announcements can create uncertainty, but good financial planning shouldn’t rely on headlines alone. Whether you’re saving for a home, planning for retirement or simply looking to make the most of your money, our team is here to help you make informed decisions based on your personal circumstances.

Get in touch with us today to speak to one of our experts.

Please note: This article is intended to provide general information only and does not constitute financial advice. The policies discussed are based on announcements made at the time of writing (7th August 2026) and may change as legislation develops. If you’re unsure how any future changes could affect your own finances, it’s worth speaking to a qualified financial adviser.

Written by Ione Morton, Marketing Executive