In the recent Budget announcement, a comprehensive overview of key dates was provided for the implementation of major changes. Alcohol prices are set to increase by 3.66% starting February 2026, impacting various beverages such as Prosecco, red wine, and gin. Rail fares in England will remain unchanged until 2027, diverging from the usual annual rise. Additionally, the two-child benefit cap under Universal Credit or Tax Credits will be removed from April 2026.
The state pension is scheduled to rise by 4.8% in April 2026, ensuring an increase in weekly payments. Similarly, most DWP benefit payments will see an increase in line with inflation rates. Car tax rates will also climb in line with inflation from April 2026. On the other hand, energy bills are expected to decrease by £150 from April 2026.
Minimum wage rates are set to rise in April 2026, particularly for workers aged 21 and above. NHS prescription costs will remain stable at £9.90 per item. Moreover, the temporary 5p cut in fuel duty will be reversed by September 2026. From April 2027, the annual cash ISA limit will be reduced to £12,000 for under-65s, while tax rates on savings interest and property interest will see an increase.
Student loan repayment thresholds will be frozen from April 2027, affecting those who commenced studies between 2012 and 2023. Pensions will become subject to Inheritance Tax from April 2027. In 2028, a new surcharge will be imposed on homes valued over £2million, while electric car drivers will face mileage-based taxes.
The Help to Save scheme for Universal Credit recipients will be made permanent from 2028. The freeze on tax thresholds is extended until April 2031, potentially impacting workers’ tax obligations.