In the Budget, significant changes were announced that will take effect on various calendar dates. Alcohol prices will increase by 3.66% in February 2026, affecting products like Prosecco, red wine, and gin. Rail fares in England will remain frozen until 2027, unlike the usual annual increase in April. The two-child benefit cap under Universal Credit will be removed from April 2026.
State pension will rise by 4.8% in April 2026, reaching £241.30 per week. DWP benefits, including Universal Credit, will also increase in April 2026. Car tax will rise in line with inflation from April 2026, affecting most cars registered after April 1, 2017.
Energy bills are set to decrease by £150 from April 2026, courtesy of a cut in the Energy Company Obligation scheme. The minimum wage will rise to £12.71 per hour for workers aged 21 and over from April 2026. NHS prescription costs will be frozen at £9.90 per item, instead of the usual annual increase.
The 5p fuel duty cut will expire in September 2026, with a gradual reversal to follow. The cash ISA limit will be reduced to £12,000 for under-65s from April 2027. Tax rates on savings interest and property interest will also increase from April 2027.
Student loan repayments threshold will be frozen from April 2027, impacting those who started courses between specific dates. Pensions will be subject to Inheritance Tax from April 2027. A mansion tax for expensive homes worth over £2 million will be introduced in April 2028.
Electric vehicle drivers will face new taxes from April 2028 based on mileage. The Help to Save scheme will become permanent from 2028. The freeze on tax thresholds has been extended until April 2031, potentially impacting more workers with higher taxes.
