2026 is set to bring significant financial changes, and the Mirror has compiled a list of important dates to mark in your calendar. From modifications to inheritance tax to the removal of the two-child benefit cap, we provide insights into all the crucial updates. While some changes were previously outlined in the Budget, others have been in the works for quite some time.
Regular updates such as the adjustment of the Ofgem price cap and essential deadlines for self-employed individuals’ tax bills are also on the horizon. The Ofgem energy price cap is scheduled to increase from £1,755 annually to £1,758 starting January. This adjustment applies to individuals with average energy consumption who pay via direct debit, with actual bills varying based on individual energy usage. Ofgem revises its price cap every quarter, with upcoming changes slated for April, July, and October.
On January 21, the Office for National Statistics will release the initial inflation update for the year. Inflation serves as a gauge of price fluctuations over time, with the current Consumer Prices Index (CPI) inflation rate standing at 3.6%. Inflation figures are published monthly, with the highest recorded inflation rate hitting 11.1% in the 12 months leading up to October 2022.
For those awaiting their Winter Fuel Payment, the Winter Fuel Payment Centre can be contacted starting January 28. This payment, worth up to £300, is accessible to individuals above the state pension age bracket. However, individuals earning over £35,000 annually must reimburse the payment through the tax system.
Self-employed individuals must file their online self-assessment tax returns by January 31 for the 2024/25 tax year. Missing this deadline incurs a minimum fine of £100, irrespective of any tax liability. Additionally, any outstanding tax from the prior tax year must be settled.
From 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 for a bottle of gin, as per the Wine and Spirit Trade Association.
Mark your calendars for February 5, which marks the first Bank of England meeting of 2026. During this meeting, interest rate decisions will be deliberated. Currently pegged at 4%, the base rate influences borrowing costs and savings interest rates, with the Bank of England convening every six weeks to set this base rate.
The Household Support Fund is scheduled to conclude on March 31, offering support to residents struggling with bill payments or low incomes. This support typically comprises cash grants or vouchers for energy and supermarket purchases.
Come April 2026, the two-child benefit cap will be abolished, allowing low-income families to claim additional means-tested benefits for third or subsequent children born after April 6, 2017.
Expect a minimum wage hike in April, with hourly rates increasing from £12.21 to £12.71 for individuals aged 21 and over, from £10 to £10.85 for those aged 18 to 20, and from £7.55 to £8 for individuals under 18 or apprentices.
Council tax bills are also poised to escalate in April, with English local authorities permitted to raise bills by up to 5%. Any proposed larger increases necessitate a referendum, with the average band D council tax bill in England for the 2024/25 period at £2,280.
While the TV licence fee typically rises yearly in April, the government is yet to confirm this for the upcoming year. Currently set at £174.50 annually, the fee generally mirrors the prior September CPI inflation rate.
Anticipate another rise in water bills from April onwards, following Ofwat’s approval for a 36% average bill increase in England and Wales by 2030, amounting to about a £157 increment over the specified period.
Car tax adjustments are expected in April in line with RPI inflation, with the standard rate fixed at £195 annually for vehicles registered post-April 2017. 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 steady at £40,000.
April 5 signifies the conclusion of the current tax year, offering individuals the chance to maximize 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 incurring taxes.
From April 6, millions will witness a 3.8% boost in benefits, with Universal Credit recipients enjoying a larger 6.2% enhancement in the standard allowance. Additionally, state pension increments are set at 4.8% as per the triple lock commitment.
In April, inheritance tax adjustments for farmers
