2026 is set to bring significant financial changes, and the Mirror has compiled a list of important dates to mark on your calendar. These changes include adjustments to inheritance tax and the removal of the two-child benefit cap. Some modifications were previously outlined in the Budget, while others have been in the works for some time.
Periodic updates, such as the Ofgem price cap alterations and crucial deadlines for self-employed individuals’ tax bills, are also on the horizon.
For instance, the Ofgem energy price cap will see a rise from £1,755 annually to £1,758 starting in January. This adjustment applies to individuals with average energy consumption who pay through direct debit. The price cap undergoes revisions every three months, with upcoming changes scheduled for April, July, and October.
The Office for National Statistics will release the first inflation update of the year on January 21. Inflation, which measures changes in prices over time, currently stands at 3.6% based on the Consumer Prices Index (CPI). In October 2022, inflation peaked at 11.1% over a 12-month period. Monthly inflation figures are regularly published.
Individuals awaiting their Winter Fuel Payment can contact the Winter Fuel Payment Centre beginning January 28. This payment, valued at up to £300, is accessible to individuals above state pension age. However, if one’s annual income exceeds £35,000, repayment through the tax system is required.
The deadline for online filing of self-assessment tax returns for the 2024/25 tax year is January 31. Failure to meet this deadline incurs a minimum penalty of £100, regardless of whether any tax is owed. Additionally, any outstanding taxes from the prior tax year must be settled.
From February, alcohol duty will increase by 3.66% in line with Retail Price Index (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, according to the Wine and Spirit Trade Association.
The first Bank of England meeting of 2026, scheduled for February 5, will determine the next steps regarding interest rates. The current base rate, which impacts borrowing costs and savings interest rates, stands at 4%. The Bank of England convenes every six weeks to set the base rate.
The Household Support Fund will conclude on March 31. This fund enables local councils to provide targeted assistance to residents struggling with overdue bills or low incomes. Support is typically provided through non-repayable cash grants or vouchers for energy and groceries.
Effective April 2026, the two-child benefit cap will be eliminated. This cap restricts low-income families from receiving additional means-tested benefits upon the birth of a third or subsequent child after April 6, 2017.
Millions of workers can anticipate a minimum wage increase starting in April. For individuals aged 21 and above, the minimum wage will climb from £12.21 per hour to £12.71 per hour, while those aged 18 to 20 will see their rate rise from £10 to £10.85 per hour. Minimum wage for individuals under 18 or apprentices will increase from £7.55 per hour to £8 per hour.
Council tax bills are also set to increase in April, with English local authorities authorized to raise bills by up to 5%. Larger increases necessitate a referendum. The average band D council tax bill in England for the 2024/25 period amounts to £2,280.
While the TV licence fee typically rises annually in April, an official announcement confirming the increase for the upcoming year is pending. Currently priced at £174.50 per year, the fee usually aligns with the previous September’s CPI inflation rate.
Anticipate another round of water bill increases in April. Ofwat has permitted water companies in England and Wales to raise average bills by 36% over five years, until 2030. This adjustment could see average bills climb by around £157 during this period.
Car tax rates are expected to rise in April in accordance 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 is set to rise from £40,000 to £50,000, while the threshold for petrol, diesel, and hybrid cars remains unchanged at £40,000.
The conclusion of the current tax year falls on April 5, marking the deadline before tax allowances reset. It is advisable to maximize these allowances before the commencement of the new tax year on April 6. Noteworthy allowances include a £20,000 ISA allowance per tax year and a £60,000 cap on pension contributions before incurring tax.
Come April 6, millions of individuals will witness a 3.8% increase in