Personal Money · Wednesday, 28 October 2026

01 Briefing what happened

UK minimum pay set to rise 3.9% to about 13.20 pounds an hour in Wednesday's Budget, with the catch-up for 18 to 20-year-olds paused

The UK's adult minimum wage is expected to rise 3.9% in John Healey's first Budget, and the rate for 18 to 20-year-olds by the same 3.9%, slowing Labour's promise of one rate for all adults. Elsewhere, Britain opened interest-free loans for heat pumps, poorer families said they cannot afford the call to stock up, and Pakistan moved to end its 200-unit electricity trap.

13.20 pounds

an hour, the expected new minimum for workers aged 21 and over

up 3.9% from 12.71 pounds, the Times reported [1]

11.27 pounds

an hour, the expected rate for workers aged 18 to 20

the same 3.9% rise, slower than the catch-up of the last two years [1][4]

981,000

people aged 16 to 24 not in work, education or training

the official count for April to June, cited by the Liberal Democrats [1]

2.7 million

workers who got a pay rise when the rates last went up, in April

the adult rate then rose 50p to 12.71 pounds [5]

The lead story — what happened

The UK chancellor, John Healey, is set to raise the National Living Wage, the legal minimum pay for workers aged 21 and over, from 12.71 pounds to about 13.20 pounds an hour. [1][2]
That is a rise of 3.9%, the Times reported. Healey gives his first Budget at about 12:30 UK time on Wednesday, and the new rates will be announced then. [1][4]
The minimum wage for 18 to 20-year-olds is expected to rise by the same 3.9%, from 10.85 pounds to about 11.27 pounds. [1][3]
In the last two Budgets the younger rate rose faster, to close the gap with adults. In April it went up 85p, against 50p for the adult rate. [4][5]
Labour promised in its election manifesto that all adults would one day get the same minimum wage. [1]
Business secretary Jonathan Reynolds did not deny the report on BBC radio. He said the promise still stands, but it will be met over time and with an eye on jobs. [1]
The slower rise comes after warnings that young people are being priced out of jobs. [2]
About 981,000 people aged 16 to 24 were not in work, education or training from April to June, official figures cited by the Liberal Democrats show. [1][8]
The Green party said Labour had broken its promise, because a young person's rent and food cost no less than anyone else's. [1]
A restaurant owner in Peckham, London, says he has a thick pile of CVs but cannot afford to hire. He blames a rise in National Insurance, a tax employers pay on wages. [9]
When the rates last rose, in April, about 2.7 million workers got a pay rise. A full-time adult on the minimum now earns 24,784.50 pounds a year. [5][3]
Emily Nelson, 19, from Swindon, has applied for shop and sales jobs since leaving college and mostly hears nothing back. [7]

13.20 poundsAged 21 and over

11.27 poundsAged 18 to 20

The expected new hourly rates. Both rise 3.9%, so the gap in pounds grows a little, from 1.86 to about 1.93 pounds an hour.

Who is involved

John Healey

the UK's chancellor, the minister in charge of tax and spending; he gives his first Budget on Wednesday
Jonathan Reynolds

the UK's business secretary; he did not deny the report and said equal pay for young adults will come over time
Mothin Ali

co-deputy leader of the Green party; he said Labour had broken its promise to young workers
The Low Pay Commission

the UK government's independent adviser on minimum pay; it recommends the new rates each year

How it unfolded

Nov 2025 The Budget raises the adult rate 4.1%, with bigger rises for younger workers [6]
1 Apr 2026 New rates start: 12.71 pounds for over-21s and 10.85 pounds for 18 to 20-year-olds [5]
May 2026 Pensions minister Torsten Bell says one rate for all adults may wait until after the next election [1]
Tue 27 Oct The Times reports a 3.9% rise for both rates, and Reynolds does not deny it [1]
Wed 28 Oct Healey gives his first Budget at about 12:30 UK time [4]

Where this points

The rates are confirmed in Healey's Budget speech at about 12:30 UK time on Wednesday. The test is whether the rate for 18 to 20-year-olds rises 3.9%, as reported, or faster. [1][4]

Signals on this beat

The bar and the word are our reading of how hard each one is pushing, and the arrow is where it is heading.

Prices rising faster than pay High↑

US hourly pay rose 3% over the year while prices rose 3.7%. [23] US home values rose 2.1% in the year to August, less than prices, for the 15th month running. [17] Manhattan's typical asking rent rose 8.3% in a year. [22]

Saving needs cash first Building↑

A single mother on Universal Credit said stocking three days of supplies would use her childcare money. [10] A heat pump costs about 13,600 pounds to fit, against a grant of up to 7,500 pounds. [12] In the US, 30% of repeat home buyers paid all in cash. [33]

Fuel prices from the Iran war High→

Fuel for one cabin on the Villa Vie Odyssey, a ship people live on, rose from 1,800 dollars to as much as 8,000 dollars a month in parts of Asia. [29] Pakistan raised diesel by Rs2.25 to Rs398.07 a litre. [15] A delivery driver in Wales spends about 350 pounds a month on petrol, 40% to 50% more than at the start of the year. [7]

Young adults falling behind Building↑

Britain is set to give 18 to 20-year-olds the same 3.9% rise as older workers, pausing their catch-up. [1] In the US, 27% of adults aged 18 to 29 expect to be worse off than their parents, against 25% who expect to be better off. [33] Only 24% of Americans aged 18 to 29 own a home. [33]

The rest of the day

17 more stories on this beat.

Each with its own sources. None of these is a link to the story above.

02
Poorer families say they cannot afford to stock up

The UK government's Be Ready campaign, launched on 22 October, asks every household to keep three days of water and food at home for an emergency. [11][34] Security minister Dan Jarvis told MPs on Tuesday that only 13% of people in the UK feel prepared for one. [1] Ruth Patrick, a professor at the University of Glasgow, said the advice would seem tone deaf to the 14 million UK households in poverty. [10] The UK government said people did not need to buy everything at once. [10]

Why it matters — Samantha Richards, a single mother on Universal Credit, said buying the supplies would mean spending her son's holiday childcare money. [10] Jarvis said the campaign answers no specific threat. [1]
03
Interest-free loans for heat pumps open

The UK government opened Warm Home Loans on Tuesday: loans of 7,500 to 35,000 pounds, at low or no interest, for heat pumps, batteries and solar panels. [12] A heat pump heats a home with electricity instead of a gas boiler. British Gas and E.On offer the loans with lenders including Tandem Bank and Homeserve. [12] The UK government says a heat pump, battery and solar panels together could cut a bill by up to 550 pounds a year. [12] The loans are part of the Warm Homes Plan, a 15bn-pound scheme announced earlier this year. [13]

Why it matters — Until now a household had to find the rest of a heat pump's cost itself: about 13,600 pounds, against a grant of up to 7,500 pounds. [12] Sources told the Guardian that hundreds of millions of pounds will be cut from that grant's 2.7bn-pound budget. [12]
04
Pakistan to end its 200-unit power trap

Pakistan's power minister, Awais Leghari, told the Senate on Tuesday that the government will scrap its 200-unit rule for home electricity. [14] Homes using up to 200 units a month get a protected, cheaper rate. [14] A senator said one unit more can lift the price from Rs15 to Rs30 a unit, and the home then loses the cheap rate for six months. [14] Pakistan's government will choose within about six weeks between raising the line to 250 units and ending the six-month ban. [14]

Why it matters — Protected users grew from 10 million to 20-25 million in two years, Leghari said. [14] Part of the rise came from homes using 700 to 800 units that fitted solar panels and bought only 200 units from the grid. [14] He wants future help to depend on income instead. [14]
05
US home values fall behind prices again

US home values rose 2.1% in the year to August, the S&P Cotality Case-Shiller index, a widely used measure of house prices, showed on Tuesday. [17][18] Prices across the economy rose 3.4% over the same time, so homes lost value in real terms for the 15th month in a row. [17] Chicago led with a 6.7% rise, while Seattle fell 2.0%. [18] The index runs a few months behind newer data, which already shows price growth cooling. [18][21]

US home values2.1%
Prices in general3.4%
Rises in the year to August. Homes rose less than everything else, so a home bought less than a year before.

Why it matters — For many owners the home is their biggest store of wealth. [33] When it rises more slowly than prices, that wealth buys a little less each month.
06
US new-home sales slip as builders cut prices

Sales of newly built US homes ran at a yearly pace of 676,000 in September, 5.3% below a year earlier, the US Census Bureau said. [19][20] The median price was 400,000 dollars, 3.9% lower than a year before. [19] Builders are paying to lower buyers' loan rates, to about 4.75% to 5.75%, while an ordinary 30-year fixed home loan averaged 7.20% on Tuesday, NerdWallet reported. [20][21][35] Builders' confidence in October fell to its lowest since June 2012. [20]

Why it matters — A buyer of an older home gets no such discount on the loan. [21] Sales of older homes stay as low as during the 2008 financial crisis. [18]
07
Prices weigh on US voters before the midterms

US average hourly pay rose 3% over the last year, while prices rose 3.7%, the BBC reports. [23] A Pew survey found 35% of Republicans now say President Trump's economic policies have made things worse, up from 18% in January. [24] Most of 1,000 registered voters polled by CNBC in mid-October were gloomy about the economy. [25] The US midterm elections, which choose the US Congress, are on 3 November. [25]

Hourly pay3%
Prices3.7%
US rises over the last year. Pay grew more slowly than prices, so a typical hour of work buys less.

Why it matters — A New York Fed study found Trump's tariffs raised the prices of goods by about 2.9%, and the Iran war pushed up fuel. [23] Trump has floated a payment of 5,000 dollars to adults if Republicans keep control of the US Congress. [23]
08
Pakistan cuts petrol, raises diesel

Pakistan cut the price of petrol by Rs3.19 a litre on Tuesday, to Rs376.06, and raised diesel by Rs2.25, to Rs398.07. [15] Petrol peaked at Rs458.41 on 3 April, after the war with Iran began in February. [15] Pakistan's government still takes Rs114 a litre in taxes and charges on petrol. [15] It agreed with Jamaat-i-Islami, a religious party threatening a march on Islamabad, to study widening a fuel subsidy that 12.7 million people have signed up for. [15][16]

Why it matters — The cheap-fuel scheme covers only motorbikes, rickshaws and cars up to 800cc. [15] Diesel, still far above its pre-war price of Rs281 a litre, is not part of it. [15][16]
09
Manhattan rent needs a 215,000-dollar income

The typical asking rent in Manhattan reached 5,375 dollars a month from July to September, 8.3% more than a year before, Realtor.com reported. [22] Under the common rule that rent should take no more than 30% of pay, a tenant would need 215,000 dollars a year. [22] The median Manhattan household earns 106,403 dollars. [22] Across New York City the typical rent hit a record 3,785 dollars, 27.5% above its level before the pandemic. [22]

Why it matters — Renters who cannot save a deposit stay where they are, a broker says, so fewer flats come free for others. [22]
10
Cash from one home buys the next

Repeat US home buyers put down a median 23% of the price in 2025, against 10% for first-time buyers, Realtor.com reports. [33] And 30% of repeat buyers paid entirely in cash. [33] A Texas buyer with 30,000 dollars saved told a CNN town hall that, when she went house hunting, a family put down 80,000 dollars more in cash. [33] Just 24% of Americans aged 18 to 29 owned a home in 2025, against 83% of those 60 and over. [33]

Why it matters — Money built up in a first home becomes the deposit for the next one. [33] So families who already own pull further ahead of those trying to start.
11
China's families now support more old than young

China's working-age people now support more elderly people than children for the first time, official figures show. [28] The ratio of people over 65 to working-age people rose to 23% last year, above 22% for children. [28] China has more than 223 million people aged 65 and over, and about 213 million children aged 14 and under. [28] More than 53 million older people got state allowances by the end of 2025. [28]

Why it matters — A researcher in Hong Kong said public money may shift from schools to pensions and health care. [28] A researcher in Singapore said there are fewer young people to support each older relative. [28]
12
Land ownership records may open free

The UK government proposed on Tuesday to let the public see, for free, who owns most land in England and Wales. [26] The Land Registry, the body that records who owns land, now charges for that information. [26] A new free dataset would name the owners of large holdings, but not ordinary homeowners. [26] The UK government says the owners of at least 10% of land are unknown, and the plan is open for comment for eight weeks. [26]

Why it matters — Councils could find sites for homes and schools faster, the UK government says. [26] The Country Land and Business Association, which speaks for landowners, warns that more public data could help fraudsters. [26]
13
MPs warn about the landline switch-off

UK phone companies aim to replace the old copper landline network with internet-based lines by the end of January. [27] The old lines keep working in a power cut, but the new ones depend on mains power. [27] MPs for remote areas told security minister Dan Jarvis that people could be left unable to call for help in a storm. [27] Providers give vulnerable customers back-up batteries that keep a phone working for an hour or more. [27]

Why it matters — Telecare users, people with alarms that call for help, must be given a free back-up battery, the UK government's Be Ready advice says. [27] Jarvis said he would take the MPs' concerns to the culture department. [27]
14
Cruise residents stranded in Cambodia

Villa Vie Odyssey, a ship where people buy cabins to live at sea, suspended its round-the-world voyage on Tuesday. [29] About 200 passengers were told to leave the ship in Cambodia, Bloomberg reported. [29] The US-based operator said fuel for each cabin in parts of Asia now costs up to 8,000 dollars a month, up from 1,800 dollars. [29] Cabins sold for 120,000 to 440,000 dollars to live in for good. [29]

Why it matters — The company says it will spend 60 days restructuring and that no outcome is assured. [29] Last year it began selling places for people to spend their retirement at sea. [29]
15
More cats given up as costs rise

An RSPCA animal centre in Coventry, England, took in 399 cats and kittens over the summer, 150 more than a year before. [30] It blames rising costs, including the cost of neutering, which leads to more kittens being born. [30] It is full with 80 cats and has a waiting list of 130 owners who want to give up a pet. [30] Across its 14 national centres the RSPCA takes in an average of 624 cats a month. [30]

Why it matters — Vet bills and insurance for older cats are among the costs owners cannot meet, the centre says. [30] The shelter itself costs 40,000 pounds a month to run. [30]
16
Cheaper towns top a US list for retirees

U.S. News & World Report, a US magazine, named Midland, Michigan, the best US place to retire for 2027 on Tuesday, for the second year running. [36] It scored more than 850 cities on living costs, health care, taxes on retirees and other measures. [36] This year it gave affordability more weight. [36] Seven of the top 10 towns have median home prices at least 10% below the US median of 430,000 dollars, HousingWire found. [36]

Why it matters — In Altoona, Pennsylvania, the median listed home costs 169,999 dollars, 60% below the US median. [36] A cheaper home leaves a retiree more of the money built up in the one they sell. [36]
17
Six lenders join a faster rural loan test

The US farm department's Rural Development agency added six lenders, including PennyMac and Fairway, to a pilot for rural home loans. [31] They join on 1 December. [31] The pilot lets lenders give the final approval before a loan closes, a check the agency used to make itself. [31] The loans carry a 90% government guarantee, a promise to cover most of a lender's loss if a borrower stops paying. [31]

Why it matters — The agency says the aim is to close loans faster with less of its own staff time. [31] Its head of rural housing says lending standards will stay strong. [31]
18
Bilt changes how its card rewards work

Bilt, a US company whose credit cards earn points on rent, announced changes on 27 October, most starting in 2027. [32] Its Bilt Cash rewards will now last 12 months instead of expiring at the end of each year. [32] But cardholders will lose the option to earn 4% back in Bilt Cash on everyday spending unless they opt out before their card anniversary. [32]

Why it matters — Cardholders who do nothing move to the new rules. [32] Those who opt out can no longer switch between the two ways of earning. [32]

02 Lesson why it matters

Why a saving that must be paid for first goes to households that already have money

Many ways to spend less, like a heat pump or a full cupboard, need money at the start, so households with spare cash save the most.

The twist

Households without spare cash keep paying the dearer way, because the cheaper way had to be paid for first.

The picture

13,600 poundsFitting a heat pump

7,500 poundsThe grant

A heat pump with a battery and solar panels can cut a bill by up to 550 pounds a year. Before the new loans, a household had to pay the 6,100-pound gap itself to fit the heat pump.

How it works

A cheaper way to live often has a cost at the start
A household with savings pays it and starts saving
A household without savings keeps paying the dearer way
The gap between them grows every month
A loan or grant that covers the start can close it

The same force, elsewhere today

Where this chain is also running, in today's other stories.

Poorer families say they cannot afford to stock up

Three days of supplies must be bought before any emergency, so one single mother would have to take the money from her son's childcare.
Interest-free loans for heat pumps

The loans pay the start of a heat pump, so a household no longer needs about 6,100 pounds of savings to get the lower bill.
Pakistan's 200-unit power trap

Homes that could pay for solar panels cut their grid use to 200 units and took a cheap rate meant for poorer homes.
Cash from one home buys the next

Repeat buyers bring cash from their last home, and 30% paid all in cash, so a first-time buyer with 30,000 dollars saved faced a family putting 80,000 dollars more down.

Where you've seen this

Buying in bulk

a big pack costs less per item, but only a shopper who can pay for the whole pack today pays less

Paying insurance yearly

a year paid at once often costs less than twelve monthly payments, which suits people with the cash

Cheap shoes

a pair that wears out in a year can cost more over five years than a dearer pair that lasts

The catch

This only works when the thing bought really saves money and keeps saving it. A loan for something that does not pay back just leaves a debt.

And the whole of it

A family that can buy ahead rarely meets the family that cannot. Most of us buy ahead on some bills and pay the dearer way on others, and few of us add up what that costs each year.

03 Truth what's really going on

What is really going on

Several of the day's stories turn on who has cash at the start. Britain told every household to buy three days of supplies and opened loans so families without savings can fit heat pumps, and Pakistan found that homes able to pay for solar panels were taking an electricity subsidy meant for poorer homes. [10][12][14]

Why it works on us — A call for every household to do the same thing sounds equally fair to all, but buying ahead weighs most on the families with the least money to spare. [10]

Who gains

Employers of 18 to 20-year-olds in the UK — If the report is right, their youngest staff's minimum pay rises 3.9% instead of the faster catch-up of the last two years. [1][4]
Lenders in the Warm Home Loans scheme, such as Tandem Bank — The UK government scheme brings them borrowers for loans of up to 35,000 pounds. [12]
Pakistani homes with solar panels — Some that use 700 to 800 units buy only 200 from the grid and keep a subsidised rate meant for lower-income homes. [14]
US home buyers who already own a home — They bring cash from their last sale, putting down a median 23% against 10% for first-time buyers. [33]
US homebuilders that pay down buyers' loan rates — They keep new-home sales near 2019 levels by offering loan rates of about 4.75% to 5.75%, while ordinary home loans cost more than 7%. [20][21]

Who pays

UK workers aged 18 to 20 — They are expected to get about 11.27 pounds an hour against 13.20 pounds for older workers doing the same job. [1]
UK families on low incomes — They are asked to buy supplies ahead, which one single mother said would mean giving up her childcare money. [10]
Pakistani homes that cross 200 units — One extra unit can double their price per unit and shut them out of the cheap rate for six months. [14]
Residents of the Villa Vie Odyssey — Cabins to live in for good sold for 120,000 to 440,000 dollars, and about 200 passengers were told to leave the ship in Cambodia. [29]
Renters in Manhattan — The typical asking rent rose 8.3% in a year to 5,375 dollars a month. [22]

What nobody knows yet

Open questions from across today’s stories — ours included.

01

What the Budget actually sets for the minimum wage.

The 3.9% figures come from a report in the Times, which the business secretary did not deny, and the rates are only announced in the speech at about 12:30 UK time. [1][4]
02

Whether slower pay rises for 18 to 20-year-olds save their jobs.

The UK government cites warnings that young people are being priced out of work, but the Low Pay Commission said earlier rises for over-21s had no significant effect on jobs. [2][5]
03

How many poorer households can follow the stock-up advice.

The UK government says people need not buy everything at once, and we found no figure for what three days of supplies cost a family. [10]
04

How much of the heat pump grant the Budget cuts, and how many households take the new loans.

Only unnamed sources have spoken of cuts of hundreds of millions from a 2.7bn-pound budget, and the UK government says only that thousands more households could take part. [12]
05

Which fix Pakistan picks for its 200-unit electricity rule.

The power minister named two options, a 250-unit line or an end to the six-month ban, and said the plan will take about six weeks. [14]
06

Whether residents of the Villa Vie Odyssey get any money back.

The company says it will spend 60 days restructuring and that no outcome is assured. [29]
07

How far US home prices fall once the slow index catches up.

The Case-Shiller index runs a few months behind newer data, and one HousingWire analyst forecasts a fall of 0.62% for 2026 but says it will be hard to reach this year. [21]
08

Whether England's land ownership records really open.

The plan is out for eight weeks of comment, and landowners' groups are expected to oppose it. [26]

04 Hope carry this

Britain opened Warm Home Loans on Tuesday. Households can borrow 7,500 to 35,000 pounds at low or no interest for heat pumps, batteries and solar panels, with nothing to pay up front.

Also true today

Pakistan's power minister told the Senate the government will scrap the rule that strips a home of cheaper electricity for six months after it uses one unit too many.
Pakistan cut the price of petrol by Rs3.19 a litre on Tuesday, to Rs376.06. In April it peaked at Rs458.41.
Six more lenders join a US government pilot on 1 December that lets them approve rural home loans without waiting for the agency.