In the recent Budget announcement, significant changes are set to take effect on specific dates. Alcohol prices are expected to increase by 3.66% starting February 2026, impacting the costs of various beverages like Prosecco, red wine, and gin. Rail fares in England, which typically rise annually, will remain frozen until 2027, offering some relief to commuters. The two-child benefit cap under Universal Credit and Tax Credits will be removed from April 2026, benefiting families with additional children.
State pension rates will rise by 4.8% in April 2026, increasing the weekly allowance for retirees. DWP benefits, including Universal Credit allowances, will also see a boost in April 2026 to align with inflation rates. Car tax rates will follow suit with inflation from April 2026, affecting most vehicles registered after April 1, 2017.
Energy bills are expected to decrease by £150 from April 2026, thanks to the elimination of the Energy Company Obligation scheme. Minimum wage rates will rise by 4.1% from April 2026, supporting workers aged 21 and above. NHS prescription costs will be maintained at £9.90 per item, instead of the usual annual increase.
The temporary 5p fuel duty cut will be reversed by September 2026. From April 2027, the annual cash ISA limit will reduce from £20,000 to £12,000 for individuals under 65. Tax rates on savings interest and property interest will increase in April 2027 for different taxpayer brackets.
Student loan repayment thresholds will be frozen from April 2027, impacting students who commenced their studies between September 2012 and July 2023. Pensions will be subject to Inheritance Tax from April 2027, affecting the estate left by deceased individuals. A new surcharge will be imposed on expensive homes worth over £2 million from April 2028.
Electric vehicle drivers will face a new mileage tax from April 2028, with rates varying for battery electric cars and plug-in hybrids. The Help to Save scheme, offering savings incentives to Universal Credit recipients, will become a permanent fixture from 2028. The freeze on tax thresholds has been extended until April 2031, potentially affecting taxpayers as their incomes rise.
