When you’re raising a child in the UK, every budget announcement hits close to home. You listen not as a worker, but as a parent. You think about rent, groceries, childcare, school, savings, and your family’s future. The 2025 budget brings a mix of good news and added pressure, and families like ours will feel both.
One of the biggest changes is the freeze on income tax and National Insurance thresholds. This sounds simple, but it has a big impact. When thresholds stay frozen while the cost of living rises, more of your income becomes taxable over time. Even if your salary goes up, your take-home pay doesn’t rise as much as you expect. For working parents, this means tighter months and less room to breathe.
There’s also an increase in support for families with more than two children. By removing the old limit on support for larger families, the government gives extra help to households that have struggled for years. If you have three or more kids, this change brings real financial relief.
Minimum wage is expected to rise. For parents working lower-paid jobs, this helps balance out some of the cost of living pressure. It doesn’t solve everything, but it gives a bit more stability.
On the other hand, taxes on savings, property income, dividends, and investments are going up. If you save for your child’s future or rely on small investment income, your returns get smaller. For parents trying to build a fund for education or long-term security, this is a setback.
For families renting or juggling childcare costs, this budget brings mixed feelings. Your pay might go up, but so does the tax on your progress. The help is real, but so is the pressure.
What this means for a working dad with a young child
• Your take-home pay might not rise much even with small raises.
• Saving for your child’s future becomes harder as taxes eat into returns.
• Families with more than two kids get meaningful financial support.
• Cost of living pressure stays high, so budgeting becomes even more important.
• You might need to adjust your financial plans and focus on long-term stability.
DadBuhay Real Talk
This budget is a mix of hope and challenge. There’s help for some families, but there’s also added pressure for anyone trying to save, invest, or move ahead. As a dad raising a kid here, planning becomes more important. You look at your income differently. You think twice about savings. You adjust your goals while trying to protect your child’s daily life.
Parents don’t look at budgets the way politicians do. We look at it as, “How will this affect my kid? How will this affect our home?” This budget makes life a bit easier in some ways and harder in others. But like always, we adapt. We plan smarter. We stay focused on what matters most — our kids.
– Until then…Love you bye! And that’s #DadBuhay
DadBuhay 
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