In the latest Budget announcements, significant changes are set to take effect on various key dates. Here is a breakdown of the upcoming adjustments:
– Alcohol prices will see a 3.66% increase from February 2026 based on Retail Price Index (RPI) inflation, resulting in higher costs for beverages like Prosecco, red wine, and gin.
– Rail fares in England will remain frozen until 2027, deferring the usual annual increase that commuters face.
– The two-child benefit cap under Universal Credit and Tax Credits will be removed starting April 2026, allowing families to claim support for additional children.
– State pension rates will rise by 4.8% in April 2026, boosting weekly payouts for retirees.
– Various DWP benefits will also see an increase in April 2026, aligning with inflation rates.
– Car tax is set to rise in line with RPI inflation from April 2026.
– Energy bills are expected to decrease by £150 in April 2026 following the elimination of the Energy Company Obligation scheme.
– The minimum wage will undergo a 4.1% increase in April 2026, benefiting workers aged 21 and over.
– NHS prescription costs will be held steady at £9.90 per item despite the usual annual price hike in April.
– A temporary 5p fuel duty reduction will be reversed by September 2026.
– The cash ISA limit will be reduced to £12,000 for under-65s from April 2027, while over-65s will retain the £20,000 limit.
– Tax rates on savings interest and property interest will increase from April 2027 for different taxpayer brackets.
– The threshold for student loan repayments will be frozen from April 2027, affecting individuals who commenced their courses between specific dates.
– Pensions will become subject to Inheritance Tax from April 2027, impacting the estates of deceased individuals.
– A new surcharge on expensive homes valued above £2 million will be introduced from April 2028.
– Electric vehicle (EV) drivers will face new mileage-based taxes from April 2028.
– The Help to Save scheme for Universal Credit recipients will be made permanent from 2028.
– The freeze on tax thresholds has been extended until April 2031, potentially affecting more workers with higher tax obligations as their income grows.
These changes reflect the government’s fiscal plans and adjustments in various sectors, impacting individuals and households across the UK.