2026 brings a series of financial changes affecting households across the UK, from energy bills to benefit reforms. Among the key updates are adjustments to the Ofgem price cap, the abolition of the two-child benefit cap, and rises in minimum wage, council tax, and water bills.
The Ofgem energy price cap will increase slightly from £1,755 to £1,758 per year from January for typical direct debit users. Meanwhile, inflation data from the Office for National Statistics will be released on January 21, with CPI currently at 3.6%. The self-assessment tax return deadline is January 31 for the 2024/25 tax year, with fines for missing it.
February sees alcohol duty rise by 3.66% in line with RPI inflation, adding 11p on a bottle of Prosecco and 38p on gin. The Bank of England will meet on February 5 to decide on interest rates, currently at 4%. From March 31, the Household Support Fund, which provides cash grants and vouchers to low-income households, ends.
April is a busy month: the two-child benefit cap is axed, minimum wage rises to £12.71 for ages 21 and over, council tax bills can increase by up to 5%, and water bills are expected to rise by £157 over five years. The TV licence fee typically rises in April, though not yet confirmed. Car tax will also increase in line with RPI inflation.
