2026 is set to bring significant financial changes, and the Mirror has compiled a list of important dates for your calendar.
From alterations to inheritance tax to the removal of the two-child benefit cap, we provide all the essential details. Some adjustments were outlined in the Budget, while others have been in the works for some time.
Regular updates, such as the Ofgem price cap modifications and crucial deadlines for self-employed individuals’ tax bills, will also occur.
Starting in January, the Ofgem energy price cap will increase from £1,755 annually to £1,758. This adjustment applies to individuals with standard energy usage who pay via direct debit. Your actual bill may vary based on your gas and electricity consumption. Ofgem revises the price cap every quarter, with upcoming changes scheduled for April, July, and October.
On January 21, the first inflation update from the Office for National Statistics will be published. Inflation, which tracks price fluctuations over time, is currently at 3.6% using the Consumer Prices Index (CPI). In the 12 months leading to October 2022, inflation peaked at 11.1%. Monthly inflation figures are regularly released.
For those awaiting their Winter Fuel Payment, the Winter Fuel Payment Centre can be contacted starting January 28. This payment, valued at up to £300, is accessible to individuals above state pension age. However, if your annual earnings exceed £35,000, repayment through the tax system is required.
The deadline for online submission of self-assessment tax returns for the 2024/25 tax year is January 31. Failure to meet this deadline results in a minimum £100 penalty, even if no tax is owed. Any outstanding taxes from the previous tax year must also be settled.
Alcohol duty is set to rise by 3.66% from February, in alignment 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.
On February 5, the first 2026 Bank of England meeting, determining future interest rate adjustments, will occur. Currently set at 4%, the base rate influences borrowing costs and savings interest rates. Every six weeks, the Bank of England convenes to establish the base rate.
The Household Support Fund will conclude on March 31. This initiative allows local councils to offer specific aid to residents facing financial difficulties or falling behind on payments. Typically, support is extended through non-repayable cash grants or vouchers for energy and groceries.
From April 2026, the two-child benefit cap will be eliminated. This cap prevented low-income families from accessing additional means-tested benefits when welcoming a third or subsequent child post-April 6, 2017.
In April, millions of workers will witness a minimum wage increase. Individuals over 21 will see their hourly minimum wage rise from £12.21 to £12.71, while those aged 18 to 20 will experience an increase from £10 to £10.85 per hour. For individuals under 18 or apprentices, the minimum wage will rise from £7.55 to £8 an hour.
Council tax bills will see another hike in April, with English local authorities permitted to raise bills by up to 5%. Larger increases necessitate a public referendum, while the average band D council tax bill in England for 2024/25 stands at £2,280.
Although the government has not yet officially announced the annual TV licence fee increase, it typically rises every April. The current fee is £174.50 annually, typically adjusting in accordance with the previous September CPI inflation rate.
Anticipate another rise in water bills from April onwards. Ofwat has sanctioned water companies in England and Wales to raise average bills by 36% over five years until 2030, translating to an approximate £157 increase over the period.
Car tax increments in April generally follow RPI inflation. The standard rate, applicable to post-April 2017 registered vehicles, currently sits at £195 per annum. The “expensive car supplement” for zero-emission vehicles (EVs) will rise from £40,000 to £50,000, while maintaining the £40,000 threshold for petrol, diesel, and hybrid vehicles.
April 5 marks the conclusion of the current tax year, prompting individuals to utilize their tax allowances before the new tax year commences on April 6. Notable allowances include a £20,000 ISA allowance per tax year and a £60,000 cap on pension contributions before taxation applies.
From April 6, millions of individuals will experience a 3.8% benefits increase, with Universal Credit recipients receiving a larger boost of approximately 6.2% to the standard allowance. The state pension will also see a 4.8% rise in line with the triple lock guarantee