Ten years of Budgets have introduced over 130 changes to personal finance rules

Government Budgets over the past decade have introduced more than 130 ‘notable’ changes to personal finance rules, although many are unaware of the reforms that have been implemented or coming into force, according to RBC Brewin Dolphin.

Only 51 per cent of people in the UK follow Budget news, with those aged 55 and over twice as likely to follow the Budget closely than those aged 18 to 29.

The study highlighted that people found it difficult to keep up with changes, as just 22 per cent of respondents said it was easy to keep track of financial planning changes from previous Budgets and 2 per cent saying it was very easy.

Even among people who were aware of reforms, confidence in their own financial plans remained low.

Only around a third (35 per cent) were confident their current financial decisions and plans reflected the recent Budget changes relevant to them.

RBC Brewin Dolphin said the gap between awareness and confidence suggested that even those who were paying attention were still unsure how to translate the headlines into practical decisions about their own money.

"We've seen 10 years of Budgets steadily redraw the financial planning landscape, and even clients who follow announcements closely can lose sight of the finer points,” commented RBC Brewin Dolphin head of intermediaries, Ian Kloss.

“Where advisers really make a difference is in joining the dots between each rule change, considering their cumulative impact.

“Read on their own, most changes seem contained, but stack them up over time and the picture for a client's long-term plan can shift considerably, which is exactly why staying in regular dialogue is so important."

Just 30 per cent of respondents were aware that unused pensions were coming into the scope of inheritance tax (IHT) from April, including only 43 per cent of those aged 55 and over.

Of the three in 10 people that were aware of the change, just 56 per cent could correctly answer what was changing.

Under a quarter (23 per cent) of people were both aware of and able to correctly identify the incoming ISA changes, and only 17 per cent were both aware of and able to correctly identify the change to the IHT treatment of pensions.

“The upcoming changes to ISAs and to the IHT treatment of pensions, both taking effect from April 2027, are a good opportunity to be proactive and help clients act early,” said Kloss.

“For advisers, it is worth reviewing clients' ISA and pension arrangements, stress-testing estate planning assumptions, and making sure clients understand how the new rules may apply to their specific circumstances.

“Engaging clients now is one of the most valuable ways to demonstrate the worth of ongoing advice."

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