From changes to the state pension, to when the tax thresholds will finally be unfrozen, here is everything you need to know
There was a lot to digest in the Budget – so The Mirror has rounded up all the key calendar dates for when each of the big changes kick in from.
2026
Alcohol becomes more expensive: Alcohol duty will rise by 3.66% from February 2026, in line with Retail Price Index (RPI) inflation. This will add 11p on a bottle of Prosecco, 13p on a bottle of red wine and 38p for a bottle of gin, according to the Wine and Spirit Trade Association.
Rail fares frozen: Rail fares in England typically rise every April – but the Chancellor has confirmed they’ll stay frozen until 2027. Rail fares for regulated tickets – such as season, anytime day, off-peak and super off-peak tickets – went up by 4.6% in earlier this year.
Two-child benefit cap axed: The two-child benefit cap, which prevents families claiming further Universal Credit or Tax Credits for their third or subsequent child, is being axed from April 2026.
State pension rises: The state pension will rise by 4.8% from April 2026. This means the full new state pension will increase from £230.25 a week to £241.30 a week (£12,547.60 a year). The state pension rises every year in line with the triple lock.
DWP benefits rise: Most benefit payments will rise in April 2026 in line with the previous September rate of inflation. The Universal Credit standard allowance will go up by an even bigger amount. The standard allowance will increase from £92 to £98 a week for a single person aged 25 and over, and from £145 to £154 per week for couples.
Car tax rise: Car tax will also rise in line with RPI inflation from April 2026. The standard annual rate for most cars registered in the UK after April 1, 2017 is £195.
Energy bills to fall £150: Rachel Reeves has promised to cut £150 from the average energy bill from April 2026 by scrapping the Energy Company Obligation scheme.
Minimum wage increases: The minimum wage is set to increase from April 2026. For workers aged 21 and over, the minimum wage will rise by 4.1% to £12.71 an hour.
NHS prescriptions frozen: NHS prescription costs normally rise every April, but the Chancellor has confirmed that they will be frozen at the current price of £9.90 per item.
5p fuel duty cut ends: The 5p per litre cut in fuel duty will only remain in place until September 2026. After this, the cut will be gradually reversed.
2027
Cash ISA limit cut: The annual cash ISA limit is being slashed from £20,000 to £12,000 from April 2027 for under-65s. You will still have an overall £20,000 ISA limit, so you could save £12,000 into a cash ISA and £8,000 into a stocks and shares ISA. Over-65s will still have their full £20,000 cash limit.
Tax on savings interest: The rate of tax paid on savings interest will rise from April 2027. If you’re a basic-rate taxpayer, the rate of tax you pay on savings interest above £1,000 will increase from 20% to 22%. Higher-rate taxpayers pay 40% tax when they earn more than £500 in savings interest but this will go up to 42%. Additional rate taxpayers have to pay 45% tax on all their savings interest. This will rise to 47%.
Tax on property interest: The rate of tax landlords pay on property interest will rise from April 2027. Basic-rate taxpayers will see their tax rate rise from 20% to 22%, higher-rate taxpayers from 40% to 42% and additional rate taxpayers from 45% to 47%.
Student loans frozen: Rachel Reeves is freezing the threshold from which student loans have be paid back from April 2027. If you started your course between September 1, 2012 and July 31, 2023, the threshold is currently £28,470 a year.
Inheritance tax pensions: Pensions will become subject to Inheritance Tax from April 2027. It will be included in the “estate” – so property, possessions and money – of someone who has died, to determine whether Inheritance Tax needs to be paid.
2028
Mansion tax: Expensive homes worth more than £2million will be hit with a new surcharge from April 2028. Homeowners of properties valued between £2million and £2.5million will be charged £2,500 a year, while owners of properties above £5million will be charged £7,500.
EV tax: Drivers of battery electric cars will pay a new 3p per mile tax from April 2028, while drivers of plug-in hybrids will be charged 1.5p per mile. An electric car driver that travels 8,500 miles a year is expected to pay about £255.
Help to Save: Help to Save, which is a savings scheme for people on Universal Credit that gives you an extra 50p for every £1 saved, is being made permanent from 2028. The scheme was expected to end in 2027.
2031
Tax thresholds freeze ends: The freeze on tax thresholds has been extended by three years and is now currently scheduled to end in April 2031. When tax thresholds are frozen, more workers end up being dragged into higher tax brackets as their wage increases. This is known as fiscal drag, or a stealth tax, as it generates more tax without having to put tax rates up.
