On 28 October 2026 the Chancellor, John Healey, delivered the Autumn Budget. The Budget covered tax, energy bills and pensions, among much else. This article looks at the parts that matter most for health and work, and what employers can take from them.
Prevention gets its own budget line
The Chancellor announced new preventative departmental expenditure limits. The Chancellor said the government will ringfence prevention spending that brings down costs in the future. If implemented, prevention spending would be protected at the next Spending Review. The details are still to come.
Welfare and work
- Face-to-face assessments for health-related benefits are coming back.
- Universal Credit is being rebalanced so it does not push people to describe themselves as too sick to work.
- Alan Milburn’s review of young people and work, and the Timms panel, will publish their final reports next month. The government will set out its response before the end of the year, with a White Paper and legislation to follow in 2027.
Young people
The Chancellor said: “I refuse to write off a million young people.” The Budget includes £100 million for a Local Apprenticeship Service to match young people with local firms, and a new Young Entrepreneurs Allowance covering a year of living costs for young founders.
The NHS
A review of NHS productivity and the role of AI was launched, to report in early 2027. A further £190 million in 2026-27 goes to the NHS in England, to help with pressures over winter and the rest of the year.
Pay
The National Living Wage and National Minimum Wage both rise by 3.9% from April 2027, covering around 2.3 million of the lowest paid workers.
What it means for employers
- Prevention is the direction of travel. Together with the government’s Workplace Health System plans published in September, the message is consistent: act earlier.
- Costs are rising. Higher wage floors, alongside Statutory Sick Pay being paid from day one since April 2026, make avoidable absence more expensive.
- Young people need support into work and once they are there. Rising mental health problems among younger workers mean good onboarding and early support matter more than ever.
- Watch for the welfare White Paper. Changes to health-related benefits may affect how and when people move into work, and the support they need when they do.
Where VYVE fits
The Budget is about national spending, and VYVE is a small part of a much bigger picture. What we share with it is the belief that prevention pays. VYVE gives people everyday support across mind, body and connection, so they can stay well before they need more help, and gives employers anonymised insight on how that support is landing.
We will follow the welfare White Paper and the Spending Review closely, and update this article when the detail on prevention spending is published.
Sources: GOV.UK, Budget 2026 speech, 28 October 2026; NHS Employers, Autumn Budget 2026; Acas, Statutory sick pay changes 2026.
This article summarises announcements and is general information, not financial or legal advice.