The recent Budget announcements are set to bring about significant changes in various areas, with key dates outlined for each adjustment. Here’s a breakdown of some of the major updates:
– Alcohol prices are expected to rise, with alcohol duty increasing by 3.66% in February 2026. This hike will translate to higher costs for beverages like Prosecco, red wine, and gin.
– Rail fares in England will remain frozen until 2027, providing relief to commuters who typically face annual increases in April.
– The two-child benefit cap under Universal Credit and Tax Credits is scheduled to be removed from April 2026, allowing families to claim support for additional children.
– The state pension is set to rise by 4.8% from April 2026, resulting in an increase in weekly payments for pensioners.
– Benefit payments, including Universal Credit standard allowances, will see an increase in April 2026, aligning with inflation rates.
– Car tax rates will also see an upward adjustment in April 2026, in line with inflation figures.
– Energy bills are expected to decrease by £150 from April 2026 due to the removal of the Energy Company Obligation scheme.
– The minimum wage will rise by 4.1% 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, breaking the usual trend of annual increases.
– The temporary 5p per litre cut in fuel duty will expire in September 2026, leading to a gradual reversal of the reduction.
– The annual cash ISA limit will be reduced to £12,000 for under-65s from April 2027, while over-65s will retain the full £20,000 limit.
– Tax rates on savings interest and property interest will increase from April 2027, affecting taxpayers at different income levels.
– Student loan repayment thresholds will be frozen from April 2027, impacting borrowers who started their courses within a specific timeframe.
– Pensions will be subject to Inheritance Tax from April 2027, forming part of the deceased individual’s estate for tax assessment purposes.
– A new mansion tax surcharge will be imposed on homes valued above £2 million from April 2028, with varying rates based on property values.
– Electric vehicle drivers will face a new per-mile tax from April 2028, aimed at promoting sustainable transport choices.
– The Help to Save scheme, targeting Universal Credit recipients, will become a permanent fixture from 2028, offering incentives for saving.
– The freeze on tax thresholds has been extended until April 2031, potentially impacting taxpayers as their incomes rise.
These changes reflect a mix of increases, freezes, and adjustments across various financial sectors, impacting individuals and households in the coming years.
