In the latest Budget, significant changes were announced, and The Mirror has compiled a list of key dates when these changes will come into effect.
1. Higher Alcohol Prices: Starting from February 2026, alcohol duty will increase by 3.66%, following the Retail Price Index (RPI) inflation. This adjustment will result in an additional 11p for a bottle of Prosecco, 13p for red wine, and 38p for gin.
2. Frozen Rail Fares: In a departure from the usual annual increase, rail fares in England will remain frozen until 2027. Earlier this year, regulated ticket prices rose by 4.6%.
3. Removal of Two-Child Benefit Cap: From April 2026, the two-child benefit cap, restricting families from claiming additional Universal Credit or Tax Credits for their third child onwards, will be abolished.
4. State Pension Boost: The state pension will see a 4.8% increase from April 2026, raising the full new state pension from £230.25 per week to £241.30 per week.
5. Enhanced DWP Benefits: Most benefit payments are set to rise in April 2026 in line with the previous September inflation rate. Notably, the Universal Credit standard allowance will see a substantial increase.
6. Car Tax Hike: Car tax rates will climb in line with RPI inflation from April 2026, affecting most cars registered in the UK post-April 1, 2017, with a standard annual rate of £195.
7. Energy Bill Reduction: Promising a £150 cut in average energy bills from April 2026, Rachel Reeves plans to eliminate the Energy Company Obligation scheme.
8. Minimum Wage Raise: Effective April 2026, the minimum wage for workers aged 21 and over will rise by 4.1% to £12.71 per hour.
9. Preserved NHS Prescriptions: Despite the usual annual increment, NHS prescription charges will remain fixed at £9.90 per item.
10. Temporary Fuel Duty Cut: The current 5p per litre fuel duty reduction will only be in place until September 2026, to be gradually reversed thereafter.
These upcoming changes highlight the financial landscape adjustments that individuals and families can anticipate in the following years.