7 Key Money Changes for February 2026: From Alcohol Duty Hikes to Smart Meter Payouts
As January draws to a close and payday brings a temporary financial refresh, February 2026 presents a series of significant monetary adjustments that could impact household budgets across the United Kingdom. From rising alcohol prices to cuts in savings rates and new compensation schemes, here is a detailed breakdown of the seven crucial financial changes to navigate this month.
February 1: Alcohol Duty Rises in Line with Inflation
From the first day of the month, alcohol duty will increase by 3.66%, aligning with the Retail Price Index (RPI) inflation rate. This adjustment will result in noticeable price hikes on popular beverages. According to the Wine and Spirit Trade Association (WSTA), consumers can expect to pay an additional 11p for a bottle of Prosecco with 11% alcohol by volume (ABV), 14p more for a bottle of red wine at 14.5% ABV, and 38p extra for a bottle of gin with 37.5% ABV. This rise reflects ongoing efforts to adjust excise duties in response to economic indicators.
February 1: Self-Assessment Tax Fines Kick In
For self-assessment taxpayers who missed the January 31 deadline, immediate penalties will apply starting February 1. An initial £100 fine will be issued, with further charges accumulating if returns remain unfiled. After three months, daily fines of £10 can be imposed, capping at £900. At the six-month mark, a penalty of 5% of the tax owed or £300, whichever is greater, will be applied, with this process repeating after twelve months. Additionally, any late tax payments will accrue interest, emphasising the importance of timely submission and payment.
February 5: Bank of England's First Interest Rate Decision of 2026
The Bank of England will convene on February 5 for its inaugural monetary policy meeting of the year, where it will determine the future trajectory of interest rates. Currently set at 3.75%, the base rate influences borrowing costs and savings returns across the financial landscape. This decision, made every six weeks, is pivotal for consumers and businesses alike, as it affects mortgage rates, loan terms, and the profitability of savings accounts.
February 10: Nationwide Implements Savings Rate Cuts
Nationwide Building Society will reduce interest rates on 36 of its savings products from February 10, a move attributed to the Bank of England's base rate adjustments. The cuts will impact a variety of accounts, including easy-access options, Individual Savings Accounts (ISAs), and children's savings accounts. This development underscores the broader trend of financial institutions recalibrating their offerings in response to shifting economic conditions, potentially affecting savers' returns.
February 14: Sky Mobile Announces Price Increases
Sky Mobile will raise its prices effective February 14, with the majority of customers facing a monthly increase of £1.50, equating to an annual rise of £18. While most will see this standard adjustment, some bills may vary, increasing by more or less depending on individual plans and contracts. This change highlights ongoing cost pressures in the telecoms sector, impacting household expenditure on mobile services.
February 18: Latest Inflation Data Release
The Office for National Statistics (ONS) will publish the latest inflation figures on February 18, providing a key measure of how prices have evolved over time. With inflation currently at 3.4%, above the Bank of England's 2% target, this data will be closely watched by policymakers, economists, and consumers. It plays a critical role in shaping monetary policy and influencing everything from wage negotiations to interest rate decisions.
February 23: Smart Meter Compensation Scheme Launches
Starting February 23, smart meter customers experiencing delays or failed installations may be eligible for £40 in compensation. Eligibility criteria include waiting more than six weeks for an appointment, appointment failures due to supplier-controlled faults, or a lack of a resolution plan within five working days of reporting an issue. This initiative aims to address customer frustrations and ensure smoother transitions to smart meter technology, promoting energy efficiency and better billing accuracy.
In summary, February 2026 brings a mix of financial adjustments that require careful attention from UK residents. From tax deadlines and duty rises to savings cuts and compensation opportunities, staying informed can help mitigate impacts on personal finances. Keep an eye on these developments to navigate the month's economic landscape effectively.
