In 2026, significant financial changes are on the horizon, and key dates have been compiled to keep you informed. These updates range from alterations to inheritance tax to the removal of the two-child benefit cap. Some adjustments were previously outlined in the Budget, while others have been in the works for an extended period.
Regular updates, such as the modification of the Ofgem price cap and important deadlines for self-employed individuals regarding tax payments, will also take place. The Ofgem energy price cap will see an increase from £1,755 to £1,758 starting in January. This adjustment is based on average energy consumption for those who pay via direct debit, with actual bills varying depending on individual usage levels.
On January 21, the first inflation report by the Office for National Statistics will be published, providing insights into price fluctuations. The current Consumer Prices Index (CPI) inflation rate stands at 3.6%, with past figures hitting a peak of 11.1% in the 12 months leading up to October 2022. Inflation data is released monthly.
For those awaiting Winter Fuel Payments, the option to contact the Winter Fuel Payment Centre will open on January 28. This payment, which can reach up to £300, is accessible to individuals above state pension age. However, those earning over £35,000 annually must reimburse this amount through the tax system.
Self-employed individuals must file their online self-assessment tax returns by January 31 for the 2024/25 tax year. Missing this deadline incurs a minimum fine of £100, regardless of any outstanding tax liabilities from the preceding tax year.
In February, alcohol duty rates will rise by 3.66% in line with Retail Price Index (RPI) inflation. This adjustment translates to an increase of 11p for Prosecco, 13p for red wine, and 38p for gin, as reported by the Wine and Spirit Trade Association.
The first Bank of England meeting in 2026, scheduled for February 5, will determine the future stance on interest rates. The current base rate, affecting borrowing costs and savings interest rates, stands at 4%. The Bank of England convenes every six weeks to set this rate.
By March 31, the Household Support Fund initiative will conclude. This program allows local councils to offer specific assistance to residents facing financial difficulties or arrears on bills, typically in the form of non-repayable cash grants or vouchers for utilities and groceries.
Starting in April 2026, the two-child benefit cap will be eliminated, enabling low-income families to claim additional means-tested benefits for third or subsequent children born after April 6, 2017.
From April onwards, millions of workers can anticipate a rise in minimum wage rates. For individuals aged 21 and above, the hourly minimum wage will increase from £12.21 to £12.71, while those aged 18 to 20 will see an increase from £10 to £10.85 per hour. Individuals under 18 or in apprenticeships will witness their minimum wage rise from £7.55 to £8 per hour.
Council tax bills will also escalate from April, with English local authorities authorized to implement up to a 5% increase. Beyond this threshold, any larger hikes necessitate a referendum. The average band D council tax bill in England for 2024/25 stands at £2,280.
The potential rise in TV licence fees every April remains uncertain pending government confirmation. Presently priced at £174.50 annually, this fee typically adjusts based on the previous September’s CPI inflation rate.
Anticipate a surge in water bills from April onwards, as Ofwat has sanctioned a 36% average bill increase for water companies in England and Wales over a five-year period until 2030. This increment could see average bills rise by approximately £157 during this timeframe.
Car tax rates are projected to climb annually in April in line with RPI inflation. The standard annual rate, excluding first-year tax for post-April 2017 registrations, currently stands at £195. For zero-emission vehicles (EVs), the “expensive car supplement” threshold will rise from £40,000 to £50,000, with no changes for petrol, diesel, and hybrid cars below the £40,000 threshold.
April 5 marks the conclusion of the current tax year, prompting a reset of all tax allowances. Ensure to maximize available allowances before the new tax year commences on April 6. Notable allowances include a £20,000 ISA limit per tax year and a £60,000 cap on tax-free pension contributions.
Come April 6, millions of beneficiaries can expect a 3.8% increase in benefits, with Universal Credit recipients receiving a larger boost of around 6.2% to their standard allowance. The state pension will also rise by 4.8% in adherence to the triple