The Budget announcement brought forth several significant changes with specific timelines for implementation. Here are the key dates for each major change:
– Alcohol prices will see a 3.66% increase starting February 2026, following the Retail Price Index (RPI) inflation. This adjustment translates to an additional 11p for Prosecco, 13p for red wine, and 38p for gin per bottle, as reported by the Wine and Spirit Trade Association.
– Rail fares in England, usually subject to annual April increases, will remain frozen until 2027 as confirmed by the Chancellor. Regulated tickets, including season, anytime day, off-peak, and super off-peak tickets, had previously increased by 4.6%.
– The two-child benefit cap, restricting families from claiming further Universal Credit or Tax Credits for a third or subsequent child, will be removed from April 2026.
– The state pension is set to rise by 4.8% from April 2026, increasing the full new state pension from £230.25 to £241.30 per week.
– DWP benefits, including the Universal Credit standard allowance, will increase in April 2026. The standard allowance for a single person aged 25 and over will rise from £92 to £98 per week, and for couples, it will increase from £145 to £154 per week.
– Car tax will see an increment in line with RPI inflation from April 2026, affecting most cars registered in the UK after April 1, 2017, with a standard annual rate of £195.
– Energy bills are expected to decrease by £150 from April 2026 following the removal of the Energy Company Obligation scheme, as pledged by Rachel Reeves.
– The minimum wage will rise by 4.1% to £12.71 per hour for workers aged 21 and over starting April 2026.
– NHS prescription costs will be maintained at the current price of £9.90 per item, as confirmed by the Chancellor, halting the usual annual April increase.
– The 5p per litre fuel duty cut will be temporary until September 2026, after which a gradual reversal will be initiated.
– The annual cash ISA limit for under-65s will decrease from £20,000 to £12,000 from April 2027, while over-65s will retain the full £20,000 cash limit.
– Tax rates on savings interest and property interest will rise from April 2027, affecting basic-rate, higher-rate, and additional rate taxpayers.
– Student loan repayment thresholds will be frozen from April 2027, impacting those who commenced courses between September 1, 2012, and July 31, 2023.
– Pensions will become subject to Inheritance Tax from April 2027, considering pensions as part of the deceased’s estate for tax assessment.
– A new surcharge will be imposed on expensive homes worth over £2 million from April 2028, with varying charges based on property value.
– Electric vehicle (EV) drivers will face a new per-mile tax from April 2028, affecting battery electric cars and plug-in hybrids differently.
– The Help to Save scheme, offering additional savings for Universal Credit recipients, will become a permanent feature from 2028.
– The freeze on tax thresholds has been extended until April 2031, potentially impacting more workers as their wages increase.
