The recent Budget announcement brought forth a plethora of key dates pertaining to significant changes. Here’s a breakdown of when each major adjustment will take effect:
Alcohol prices are set to increase as alcohol duty will see a 3.66% rise starting February 2026, following Retail Price Index (RPI) inflation. This hike translates to an additional 11p for Prosecco, 13p for red wine, and 38p for gin per bottle.
Rail fares in England, which typically surge annually in April, will remain frozen until 2027 as confirmed by the Chancellor. Earlier this year, regulated rail tickets, including season tickets, anytime day tickets, and off-peak tickets, saw a 4.6% increase.
From April 2026, the two-child benefit cap, restricting families from claiming additional Universal Credit or Tax Credits for a third child or beyond, will be eliminated.
State pensions are set to increase by 4.8% from April 2026. This raise will see the full new state pension spike from £230.25 to £241.30 per week.
In April 2026, most benefit payments will surge in line with the previous September inflation rate. The Universal Credit standard allowance will witness a substantial increase.
Car tax will also climb in line with RPI inflation starting April 2026. For cars registered in the UK post-April 1, 2017, the standard annual rate stands at £195.
Energy bills are expected to decrease by £150 from April 2026 following Rachel Reeves’ pledge to abolish the Energy Company Obligation scheme.
The minimum wage will rise by 4.1% from April 2026, with workers aged 21 and over seeing their hourly minimum wage increase to £12.71.
NHS prescription costs will remain fixed at £9.90 per item, with no increment in April as confirmed by the Chancellor.
The 5p per litre fuel duty reduction will only persist until September 2026, after which a gradual reversal will take place.
From April 2027, the annual cash ISA limit will be reduced from £20,000 to £12,000 for individuals under 65. However, the overall ISA limit will remain at £20,000, allowing for a split between cash and stocks and shares ISAs.
Starting April 2027, the tax rate on savings interest will see an increase, impacting basic-rate, higher-rate, and additional rate taxpayers.
Landlords’ tax rate on property interest will also rise from 20% to 22% for basic-rate taxpayers, and from 40% to 42% for higher-rate taxpayers, effective April 2027.
The threshold for repaying student loans will be frozen starting April 2027, affecting individuals who commenced their courses between September 1, 2012, and July 31, 2023.
Pensions will be subject to Inheritance Tax from April 2027, included in the deceased’s estate to determine tax obligations.
Properties valued above £2 million will face a new surcharge from April 2028, with homeowners paying a yearly fee based on their property’s value.
A new tax will be imposed on electric car drivers and plug-in hybrid owners from April 2028, ranging from 1.5p to 3p per mile traveled.
The Help to Save scheme, designed for Universal Credit recipients, will become a permanent fixture from 2028, offering additional savings incentives.
The freeze on tax thresholds has been extended until April 2031, potentially affecting more workers over time due to fiscal drag.