In 2026, significant financial changes are on the horizon, and the Mirror has compiled a list of important dates to mark on your calendar. These changes encompass various aspects such as inheritance tax adjustments and the removal of the two-child benefit cap. Some modifications were outlined in previous Budget announcements, while others have been in the works for some time.
Certain updates occur regularly, like the adjustments to the Ofgem price cap or crucial deadlines for self-employed individuals regarding their tax obligations.
Starting in January, the Ofgem energy price cap will increase from £1,755 to £1,758 annually. This adjustment applies to individuals with average energy usage who pay via direct debit. Actual bills may vary based on individual energy consumption levels. Ofgem revises its price cap every three months, 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 measures the price fluctuations over time, with the Consumer Prices Index (CPI) currently standing at 3.6%. Inflation figures are published monthly.
For those awaiting Winter Fuel Payments, the Winter Fuel Payment Centre can be contacted starting January 28. This payment, worth up to £300, is accessible to individuals above state pension age. However, individuals earning above £35,000 annually will need to repay the amount through the tax system.
The deadline for online submission of self-assessment tax returns for the 2024/25 tax year is January 31. Missing this deadline incurs a minimum fine of £100, regardless of whether any tax is owed. Outstanding taxes from the previous tax year must also be settled.
In February, alcohol duty will rise by 3.66%, following the RPI inflation rate. This increase translates to an additional 11p for a bottle of Prosecco, 13p for red wine, and 38p for gin, according to the Wine and Spirit Trade Association.
The first Bank of England meeting of 2026, determining future interest rate decisions, is scheduled for February 5. The current base rate, influencing borrowing costs and savings interest rates, stands at 4%. These meetings occur 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 bill arrears or low incomes. Support typically includes non-repayable cash grants or vouchers for energy and groceries.
In April 2026, the two-child benefit cap will be eliminated, allowing low-income families to claim further means-tested benefits for additional children born after April 6, 2017.
From April onwards, minimum wage rates will increase for various age groups. Individuals aged 21 and above will see their hourly rate rise from £12.21 to £12.71, while those aged 18 to 20 will experience an increase from £10 to £10.85. Rates for individuals under 18 or in apprenticeships will also rise.
Council tax bills will witness another increment in April, with local authorities in England permitted to raise bills by up to 5%. Larger increases necessitate a referendum. The average band D council tax bill in England for 2024/25 is £2,280.
While the TV licence fee typically rises annually in April, the official announcement regarding the upcoming adjustment is pending. Presently set at £174.50 annually, the fee usually aligns with the previous September’s CPI inflation rate.
Anticipate an increase in water bills from April onward, with Ofwat authorizing companies to raise average bills by 36% in England and Wales over five years until 2030. This may result in an approximate £157 rise in average bills during this period.
Car tax hikes are anticipated every April in line with RPI inflation. The standard rate for vehicles registered post-April 2017, excluding first-year rates for new cars, currently stands at £195 annually. The “expensive car supplement” for zero-emission vehicles will rise from £40,000 to £50,000, while the threshold for petrol, diesel, and hybrid cars remains unchanged at £40,000.
The conclusion of each tax year on April 5 signifies the final opportunity to maximize tax allowances before they reset for the new tax year commencing on April 6. Notable allowances include a £20,000 ISA allowance and a £60,000 cap on pension contributions before incurring tax liabilities.
As of April 6, millions of individuals will observe a 3.8% increase in benefits, with Universal Credit recipients witnessing a more substantial 6.2% hike in the standard allowance. Additionally, the state pension will rise by 4.8% in adherence to the triple lock pledge.
In April 2026, inheritance tax modifications for farmers will be implemented, introducing a new £2.5 million cap on inherited agricultural assets with