The recent Budget announcements have unveiled a series of significant changes set to take effect over the coming years. Here’s a breakdown of the key dates for various adjustments to be implemented.
Alcohol Price Increase: Starting from February 2026, alcohol duty will see a 3.66% hike following the Retail Price Index (RPI) inflation. This translates to an additional cost of 11p for Prosecco, 13p for red wine, and 38p for gin per bottle, according to the Wine and Spirit Trade Association.
Rail Fare Freeze: Contrary to the usual annual increases in April, rail fares in England will remain unchanged until 2027 as confirmed by the Chancellor. Regulated tickets, including season tickets and off-peak fares, experienced a 4.6% rise earlier this year.
End of Two-Child Benefit Cap: Effective April 2026, the restriction on claiming Universal Credit or Tax Credits for a third child and beyond will be eliminated.
State Pension Increase: From April 2026, the state pension will rise by 4.8%, elevating the full new state pension to £241.30 per week. This adjustment aligns with the annual triple lock mechanism.
Rise in DWP Benefits: Most benefit payments will escalate in April 2026 in line with the previous September inflation rate. Notably, the Universal Credit standard allowance will see a substantial increase.
Car Tax Adjustment: Starting April 2026, car tax rates will climb in accordance with RPI inflation, affecting most cars registered in the UK after April 1, 2017, with a standard annual rate of £195.
Energy Bill Reduction: In a move to reduce energy costs, Rachel Reeves has pledged a £150 cut in average energy bills from April 2026 by discontinuing the Energy Company Obligation scheme.
Minimum Wage Increase: Effective April 2026, the minimum wage will see a 4.1% rise, reaching £12.71 per hour for workers aged 21 and above.
NHS Prescription Freeze: Despite the usual annual increments, NHS prescription costs will remain steady at £9.90 per item, confirmed by the Chancellor.
End of 5p Fuel Duty Cut: The temporary 5p per litre reduction in fuel duty will only be in effect until September 2026