18 Major Financial Changes Coming in April 2026: Bill Increases and Allowance Resets
April is always a pivotal month for personal finances, marking the end of the tax year and the reset of key allowances like ISAs and pension contributions. However, this period also brings a wave of bill increases that will impact households across the UK. We round up all the essential money changes you need to know for April 2026.
April 1: Minimum Wage Rises
Millions of workers will benefit from minimum wage increases starting April 1. For those aged 21 and over, the rate rises from £12.21 to £12.71 per hour. Workers aged 18 to 20 will see an increase from £10 to £10.85 per hour, while under-18s and apprentices will get a boost from £7.55 to £8 per hour.
April 1: Council Tax Rises
Council tax bills in England are set to rise again, with most local authorities implementing the maximum 5% increase. A few councils have secured permission for larger hikes, requiring a referendum for anything above this threshold. The average band D council tax bill for 2026/27 is projected to be £2,392.
April 1: TV Licence Fee Rises
The TV licence fee increases from £174.50 to £180 from April. This licence is mandatory for watching or recording live TV or accessing BBC iPlayer, but not for other streaming services unless live content is viewed.
April 1: Water Bills Rise
Water bills in England and Wales will rise by an average of £33 annually, a 5.4% increase. Ofwat has approved a plan allowing companies to raise average bills by 36% over five years, leading up to 2030.
April 1: Car Tax Rises
Standard road tax for vehicles registered from April 2017 rises from £195 to £200. Rates for older vehicles and first-year "showroom" taxes are also increasing.
April 1: Broadband and Mobile Bills Rise
Most telecom providers will hike broadband and mobile bills by £1 to £4 per month from April, adding up to £48 annually. New regulations require firms to specify increases in "pounds and pence" rather than linking them to inflation.
April 1: NHS Dental Charges Rise
NHS dental charges in England increase by 1.7%. Band 1 care, including routine check-ups, rises from £27.40 to £27.90. Band 2 care, covering fillings and extractions, goes from £75.30 to £76.60, while Band 3 dentures increase from £326.70 to £332.10.
April 1: Air Passenger Duty Rises
Air Passenger Duty rises by 15%, adding £2 to economy short-haul flights, making the rate £15. Medium-haul flights see a £12 increase to £102, and long-haul flights rise by £12 to £106.
April 1: Energy Bills Fall... for Now
The Ofgem energy price cap falls from £1,758 to £1,641 for typical dual fuel households from April. However, analysts predict a significant summer rise, with Cornwall Insight forecasting a July cap of £1,973 due to increased gas prices from Middle East conflicts.
April 5: End of the Tax Year
April 5 marks the end of the tax year, the final day to utilise allowances before they reset on April 6. Key allowances include the £20,000 ISA limit and the £60,000 pension contribution cap before tax applies.
April 6: Making Tax Digital
Sole traders and landlords with incomes over £50,000 must adopt Making Tax Digital from April 6, requiring digital record-keeping and quarterly tax submissions using compatible software.
April 6: Inheritance Tax Change
Changes to agricultural and business property reliefs introduce a new £2.5 million cap before Inheritance Tax applies, with 50% relief for assets above this. The standard Inheritance Tax rate remains 40%.
April 6: Dividend Tax Rate Rises
Dividend Tax rates increase from 8.75% to 10.75% for basic rate taxpayers and from 33.75% to 35.75% for higher rate taxpayers from April 6.
April 6: Capital Gains Tax Increase
The Capital Gains Tax rate for Business Asset Disposal Relief and Investors’ Relief rises from 14% to 18%, though the £1 million lifetime limit remains unchanged, affecting entrepreneurs and investors.
April 6: Work from Home Tax Relief Cut
From April 6, employees can no longer claim tax relief for extra household costs like gas and electricity when working from home, eliminating the flat £6 per week allowance.
April 6: Two-Child Benefit Cap Axed
The two-child benefit cap is removed, allowing low-income families to claim means-tested benefits for third or subsequent children born after April 6, 2017. Universal Credit amounts per child rise from £292.81 to £303.94 monthly.
April 7: Royal Mail Stamp Price Rise
First class stamps increase by 10p to £1.80, marking a 181% rise since 2016. Second class stamps go up by 4p to 91p.
April 13: Benefits and State Pension Increase
Welfare payments, including Child Benefit and Personal Independence Allowance, rise by 3.8%. Universal Credit's basic standard allowance increases by 6.2%, though health elements for new claimants are cut. The state pension rises by 4.8% under the triple lock promise.
