The Budget announcement unveiled several key changes with specific effective dates. Alcohol prices are set to increase by 3.66% starting February 2026, impacting various beverages like Prosecco, red wine, and gin. On the other hand, rail fares in England will remain frozen until 2027, deferring the usual April increase. Additionally, the two-child benefit cap under Universal Credit will be removed in April 2026.
State pension will see a 4.8% rise from April 2026, reaching £241.30 per week. DWP benefits, including Universal Credit, will also increase in April 2026, with higher allowances for single individuals and couples. Car tax will rise in line with inflation from April 2026, affecting most post-2017 UK registered vehicles.
Energy bills are expected to decrease by £150 in April 2026, courtesy of the Energy Company Obligation scheme elimination. Minimum wage will increase to £12.71 per hour for workers aged 21 and above from April 2026. NHS prescriptions will remain at £9.90 per item, as confirmed by the Chancellor.
The 5p fuel duty cut will cease in September 2026. Cash ISA limits will decrease to £12,000 for under-65s while the tax on savings interest and property interest will rise from April 2027. Student loans repayment threshold will remain fixed from April 2027, affecting those who started courses between 2012 and 2023. Pensions will be subject to Inheritance Tax from April 2027, and a mansion tax will target homes exceeding £2 million in value from April 2028.
Electric vehicle (EV) drivers will face new mileage taxes from April 2028, varying for battery electric cars and plug-in hybrids. Help to Save scheme for Universal Credit recipients will continue permanently from 2028. The freeze on tax thresholds has been extended until April 2031, potentially impacting more taxpayers.