In the Budget, significant changes are on the horizon with various key dates set for implementation. Alcohol prices are set to increase with a 3.66% rise in alcohol duty from February 2026. Rail fares in England will remain frozen until 2027. The two-child benefit cap under Universal Credit will be removed from April 2026. State pension will see a 4.8% increase from April 2026, while most DWP benefit payments will rise in line with inflation. Car tax will also go up in April 2026, and energy bills are expected to drop by £150 from the same month. The minimum wage will see a 4.1% increase for workers aged 21 and over from April 2026.
Furthermore, NHS prescription costs will be frozen at £9.90 per item, the 5p fuel duty cut will be reversed by September 2026, and the cash ISA limit will be reduced to £12,000 for under-65s from April 2027. Tax rates on savings interest and property interest will rise in April 2027. Student loan repayment thresholds will be frozen from April 2027. Pensions will be subject to Inheritance Tax from April 2027. A mansion tax surcharge for homes over £2 million will be implemented from April 2028. Electric vehicle drivers will face new taxes from the same date. Additionally, the Help to Save scheme for Universal Credit recipients will become permanent from 2028, and the freeze on tax thresholds will end in April 2031.
