The Budget has outlined significant changes with specific dates for implementation. Alcohol prices will increase by 3.66% in February 2026, affecting various beverages. Rail fares in England will remain frozen until 2027, unlike the usual annual increase. The two-child benefit cap under Universal Credit or Tax Credits will be removed from April 2026.
State pension will rise by 4.8% from April 2026, reaching £241.30 per week. Benefit payments, including Universal Credit, will increase in line with inflation. Car tax rates will also rise in April 2026 based on the Retail Price Index. Energy bills are expected to decrease by £150 in April 2026, thanks to the elimination of the Energy Company Obligation scheme.
The minimum wage will increase to £12.71 per hour for workers aged 21 and over from April 2026. NHS prescription costs will be frozen at £9.90 per item. However, the 5p fuel duty reduction will only be temporary until September 2026. The annual cash ISA limit will decrease to £12,000 for under-65s from April 2027.
Tax rates on savings interest and property interest will rise from April 2027, affecting different taxpayer brackets. Student loan repayment thresholds will be frozen from April 2027. Pensions will be subject to Inheritance Tax from April 2027. A new surcharge on expensive homes above £2 million will be introduced in April 2028.
Drivers of electric cars will face new mileage taxes from April 2028. The Help to Save scheme will become permanent from 2028, providing additional benefits to Universal Credit recipients. The freeze on tax thresholds is extended until April 2031, potentially impacting more workers as their wages increase.