In 2026, significant financial changes are on the horizon, and the Mirror has compiled a list of crucial dates to mark in your calendar. These changes range from alterations to inheritance tax to the removal of the two-child benefit cap. Some of these updates were previously disclosed in the Budget, while others have been in the works for a longer period.
Updates such as the Ofgem price cap adjustments and essential tax deadlines for self-employed individuals occur regularly. The Ofgem energy price cap is set to increase from £1,755 to £1,758 annually starting in January. This adjustment applies to those with standard energy usage who pay via direct debit. However, individual bills may vary based on actual energy consumption levels. Ofgem reviews and revises the price cap every quarter, with subsequent changes scheduled for April, July, and October.
On January 21, the Office for National Statistics will release the first inflation update of the year. Inflation, which tracks price fluctuations over time, currently stands at 3.6% according to the Consumer Prices Index (CPI). In the twelve months leading up to October 2022, inflation peaked at 11.1%. Monthly inflation figures are regularly published.
For individuals awaiting their Winter Fuel Payment, the Winter Fuel Payment Centre can be contacted starting January 28. This payment, valued at up to £300, is available to those above the state pension age. However, recipients earning more than £35,000 per year are required to reimburse the amount through the tax system.
The deadline for online filing of self-assessment tax returns for the 2024/25 tax year is January 31. Missing this deadline incurs a minimum fine of £100, irrespective of whether taxes are owed. Outstanding taxes from the previous fiscal year must also be settled.
In February, alcohol duty will increase by 3.66% in alignment with RPI inflation. This adjustment translates to an additional 11p on a bottle of Prosecco, 13p on a bottle of red wine, and 38p on a bottle of gin as reported by the Wine and Spirit Trade Association.
The Bank of England’s first meeting of 2026 to determine future interest rate policies will be held on February 5. The current base rate, affecting borrowing costs and savings interest rates, stands at 4%. The Bank of England convenes every six weeks to set the base rate.
By March 31, the Household Support Fund will conclude. This initiative enables local councils to provide targeted assistance to residents facing financial challenges or falling behind on payments. Support is typically dispensed through cash grants or vouchers without repayment obligations.
Starting in April 2026, the two-child benefit cap will be lifted, allowing low-income families to claim additional means-tested benefits for third and subsequent children born after April 6, 2017.
From April onwards, the minimum wage will increase for millions of workers. Individuals aged 21 and over will witness a rise from £12.21 to £12.71 per hour, while those aged 18 to 20 will see an increment from £10 to £10.85 per hour. Minimum wage rates for individuals under 18 or apprentices will also see adjustments.
Council tax bills will escalate in April, with English local authorities permitted to raise bills by up to 5%. Any proposed increases exceeding this threshold necessitate a referendum. The average band D council tax bill in England for the 2024/25 period amounts to £2,280.
Although the government has yet to confirm, the TV licence fee typically undergoes an annual rise in April. The current fee stands at £174.50 per year and usually aligns with the previous September’s CPI inflation rate.
Anticipate another round of water bill increases in April as Ofwat permits companies in England and Wales to boost average bills by 36% by 2030. This adjustment could lead to an average bill surge of roughly £157 over the five-year period.
Car tax rates are set to rise every April in line with RPI inflation. The standard rate, applicable to cars registered post-April 2017, currently stands at £195 annually. The “expensive car supplement” for zero-emission vehicles will climb from £40,000 to £50,000, while the threshold for petrol, diesel, and hybrid cars remains unchanged at £40,000.
April 5 marks the conclusion of the current tax year, signifying the last day before tax allowances reset. It is advisable to utilize available tax benefits before the new tax year commences on April 6. For instance, tax year allowances include a £20,000 ISA allowance and a £60,000 pension contribution cap before incurring tax liabilities.
Starting April 6, millions of individuals will see their benefits escalate by 3.8%. Notably, Universal Credit is slated for a larger upsurge of approximately 6.2% in its standard