In 2026, significant financial changes are on the horizon, and it’s crucial to mark your calendar with key dates outlined by Mirror. These changes span from alterations in inheritance tax to the removal of the two-child benefit cap. While some adjustments were previously disclosed in the Budget, others have been in the works for an extended period.
Certain updates occur at regular intervals, such as the fluctuation of the Ofgem price cap and essential deadlines for self-employed individuals concerning their tax obligations.
The Ofgem energy price cap will experience an increase from £1,755 annually to £1,758 starting in January. This adjustment applies to individuals with typical energy consumption who make payments via direct debit. Your actual bill may vary based on your specific gas and electricity usage. Ofgem revises its price cap every quarter, with upcoming changes scheduled for April, July, and October.
On January 21, the Office for National Statistics will release the first inflation update of the year. Inflation serves as a metric for tracking price fluctuations over time, with the current Consumer Prices Index (CPI) inflation rate standing at 3.6%. In the 12 months leading up to October 2022, inflation peaked at 11.1%. Monthly inflation figures are regularly published.
For those awaiting their Winter Fuel Payment, reaching out to the Winter Fuel Payment Centre is possible starting January 28. This payment, valued at up to £300, is accessible to individuals above state pension age. However, if earnings exceed £35,000 annually, repayment through the tax system becomes necessary.
The deadline for submitting online self-assessment tax returns for the 2024/25 tax year is January 31. Failure to meet this deadline incurs a minimum fine of £100, irrespective of any outstanding tax obligations from the previous tax year.
Beginning in February, alcohol duty will witness a 3.66% increase in alignment with RPI inflation rates. This adjustment translates to an additional 11p for a bottle of Prosecco, 13p for red wine, and 38p for a bottle of gin, as reported by the Wine and Spirit Trade Association.
The first Bank of England meeting of 2026, where decisions regarding interest rates will be made, is slated for February 5. The current base rate, which impacts borrowing costs and savings interest rates, stands at 4%. The Bank of England convenes every six weeks to determine the base rate.
On March 31, the Household Support Fund is set to conclude. This initiative allows local councils to provide targeted assistance to residents facing bill arrears or residing on limited incomes. Support typically comprises non-repayable cash grants or vouchers for energy and groceries.
Come April 2026, the two-child benefit cap will be eliminated, enabling low-income families to claim additional means-tested benefits for any subsequent children born post-April 6, 2017.
In April, a rise in the minimum wage is expected to benefit millions of workers. For individuals aged 21 and above, the minimum wage will increase from £12.21 to £12.71 per hour, while those aged 18 to 20 will observe a rise from £10 to £10.85 per hour. Rates for individuals under 18 or apprentices will also see increments.
Council tax bills are set to escalate in April, with English local authorities authorized to implement up to a 5% increase. Larger hikes necessitate a referendum. The average band D council tax bill for England in the 2024/25 fiscal year stands at £2,280.
Traditionally, the TV licence fee escalates every April; however, official confirmation of this year’s adjustment is pending. Presently, the annual TV licence fee is £174.50, typically aligning with the prior September CPI inflation rate.
Anticipate a surge in water bills from April onward. Ofwat’s approval for water companies in England and Wales to elevate average bills by 36% until 2030 signifies an increment of about £157 over the five-year period.
In April, car tax rates, excluding first-year rates for new cars, are anticipated to rise in accordance with RPI inflation. The standard rate for cars registered post-April 2017 currently stands at £195 annually. The “expensive car supplement” for EVs will increase to £50,000, while remaining at £40,000 for petrol, diesel, and hybrid vehicles.
The termination of the current tax year occurs on April 5, marking the final day before tax allowances reset. Individuals are encouraged to maximize these allowances before the new tax year commences on April 6. Notable allowances include a £20,000 ISA allowance per tax year and a £60,000 cap on pension contributions prior to incurring tax obligations.
Commencing April 6, millions will witness a 3.8% increase in benefits, with Universal Credit recipients benefiting from a larger upt