In 2026, significant financial changes are on the horizon, and it’s important to mark your calendar with key dates. These changes range from adjustments to inheritance tax to the removal of the two-child benefit cap. Some modifications were previously outlined in the Budget, while others have been in the works for a longer period.
Periodic updates like the Ofgem price cap adjustment and crucial deadlines for self-employed individuals’ tax bills are also on the horizon. Ofgem’s energy price cap will increase from £1,755 to £1,758 annually starting January. This adjustment applies to individuals with average energy consumption who pay via direct debit. However, actual bills may vary based on individual gas and electricity usage. Ofgem revises its price cap every quarter, with upcoming changes scheduled for April, July, and October.
On January 21, the Office for National Statistics will release the first inflation update for the year. Inflation measures the changes in prices over time, with the current Consumer Prices Index (CPI) inflation rate standing at 3.6%. In the past, inflation peaked at 11.1% over a 12-month period ending in October 2022. Inflation figures are released monthly.
For those awaiting Winter Fuel Payment, reaching out to the Winter Fuel Payment Centre can be done starting January 28. This payment, valued at up to £300, is accessible to individuals above state pension age. However, individuals earning over £35,000 annually will need to reimburse it through the tax system.
Self-assessment tax return filers must submit their online forms by January 31 for the 2024/25 tax year. Failure to meet this deadline incurs a minimum fine of £100, irrespective of any outstanding tax obligations from the previous tax year.
From February, alcohol duty will escalate by 3.66%, in line with RPI inflation. This increase translates to an additional 11p for Prosecco, 13p for red wine, and 38p for gin per bottle, as reported by the Wine and Spirit Trade Association.
Stay tuned for the Bank of England’s initial meeting of 2026 on February 5, where decisions on interest rates will be deliberated. The current base rate stands at 4%, influencing borrowing costs and interest earnings from savings. The Bank of England convenes every six weeks to set this base rate.
The Household Support Fund is set to conclude on March 31. This scheme empowers local councils to provide tailored assistance to residents facing bill arrears or living on limited incomes. The aid typically comprises non-repayable cash grants or vouchers for energy and groceries.
Effective April 2026, the two-child benefit cap will be eliminated, allowing low-income families to claim additional means-tested benefits for children born after April 6, 2017.
Come April, several changes are expected, including a rise in the minimum wage for various age groups and an increase in council tax bills by up to 5% in England. The TV licence fee, water bills, car tax, and the end of the tax year on April 5 will also see adjustments.
In April, millions will witness a boost in benefits, with Universal Credit recipients experiencing a larger increase in their standard allowance. Additionally, a state pension hike of 4.8% in line with the triple lock promise is on the cards.
April will also herald inheritance tax alterations for farmers, introducing a new cap on inherited agricultural assets at £2.5 million, with a 20% effective inheritance tax rate on assets exceeding this threshold.
Furthermore, dividend tax rates will rise for basic and higher rate taxpayers as announced in the Budget. New regulations requiring transparent pricing displays in shops will be enforced to enhance price comparison convenience.
Starting April 5, individuals working from home will no longer qualify for tax relief on additional household expenses. The UK’s work-from-home allowance stands at a fixed rate of £6 per week.
Regulation of buy now, pay later services by the Financial Conduct Authority (FCA) will commence on July 15, ensuring affordability checks for loan repayments and support for individuals facing financial challenges.
University tuition fees in England will see an inflation-linked increase from £9,250 to £9,535 annually.
The fuel duty reduction of 5p per litre implemented in March 2022 will gradually return to normal levels by September 2026. Eligibility for free school meals in England will expand to include children whose parents receive Universal Credit from September 2026.
A new £2.20 per 10ml charge on vaping products will be implemented in October 2026, coupled with a one-off tobacco duty hike. Subsequent tobacco duty adjustments may follow in November’s Budget.
Individuals needing to register for self-assessment tax for the first time must do so by October 5 annually to avoid penalties. Filing paper tax returns by October 31 is crucial, with online submissions permitted until
