In the recent Budget, significant changes were announced with specific dates for implementation. Alcohol prices are set to increase by 3.66% starting February 2026, affecting items like Prosecco, red wine, and gin. In contrast, rail fares in England will remain frozen until 2027, unlike the previous annual increases seen in April. Additionally, the two-child benefit cap under Universal Credit and Tax Credits will be removed from April 2026.
State pension will see a 4.8% rise from April 2026, while most benefit payments, including Universal Credit standard allowances, will increase in line with September inflation rates. Car tax will also be adjusted according to RPI inflation from April 2026. Energy bills are expected to decrease by £150 in 2026, thanks to the elimination of the Energy Company Obligation scheme.
Minimum wage is scheduled to rise by 4.1% in April 2026, reaching £12.71 per hour for workers aged 21 and over. NHS prescriptions will remain at £9.90 per item, freezing the usual annual increase. However, the 5p fuel duty cut will only last until September 2026 before being gradually reversed.
Other changes include a reduction in the annual cash ISA limit to £12,000 for under-65s from April 2027, an increase in tax on savings interest, and a rise in property interest tax rates. Student loan repayment thresholds will be frozen from April 2027, while pensions will become subject to Inheritance Tax from the same date. Additionally, expensive homes worth over £2 million will face a new surcharge from April 2028.
Furthermore, a new tax on electric vehicles will be introduced in 2028, and the Help to Save scheme for Universal Credit recipients will become permanent from the same year. The freeze on tax thresholds has been extended until April 2031, with implications for tax brackets and worker incomes.