At the start of 2026, it seems the financial picture is finely balanced. Inflation has come down from its latest peak, mortgage rates have started falling and changes announced in the budget should take some money off energy bills from April.
But the price of housing, groceries and energy remain far higher than pre-pandemic, and there are some changes coming that will make aspects of life more expensive.
Here are some dates that could affect your finances in the coming months.
January
During this month, mortgage customers on variable-rate deals should start benefiting from December’s Bank of England rate cut.
1st The energy price cap goes up. The per unit price limit – set by the regulator, Ofgem, and recalculated every three months – will increase by 0.2%, equivalent to taking the typical annual dual-fuel energy bill up by £3 to £1,758.
This is the cap for direct debit customers. The prepayment cap is lower, while those who pay in arrears have a higher one. Your actual bill will depend on how much gas and electricity you use and the tariff you are on – some are now cheaper than the price cap.
Investing in cryptoassets including bitcoin, stablecoins or non-fungible tokens (NFTs) will involve more paperwork from this date.
HM Revenue and Customs wants to make sure you are paying all relevant taxes, so you will need to provide details, including your national insurance number, to any provider you use to buy, sell or transfer crypto. You should already have been declaring any taxable gains you have made.
21st The official inflation figures for December come out, having fallen the previous month to 3.2%. The government has promised to tackle the rising cost of living, and so all eyes will be on the Office for National Statistics each month as it reports on prices.
31st The last day for filling in a self-assessment return for the 2024-25 tax year. Last January, more than 1 million people missed the deadline for filing. HMRC says 31,442 taxpayers left it to almost the last minute, submitting theirs between 11pm and 11.59pm on the day.
This date is also the deadline for energy companies to ensure they have a tariff available with low standing charges to help customers who do not use a lot of energy.
Ofgem had initially proposed tariffs with no daily standing charge, but this was watered down. It has warned consumers that these tariffs may have higher unit charges than others, so savings could be offset.
February
1st Alcohol duty will go up by 3.66%, in line with the RPI measure of inflation. According to the Wine and Spirit Trade Association, the change will add 10p to a bottle of white wine at 11% ABV, 39p to a bottle of 40% ABV whisky and 6p to a four-pack of 4.6% lager.
5th The Bank of England’s first interest rate decision of the year. The base rate ended 2025 at 3.75% after a cut at the last meeting. The Bank’s governor, Andrew Bailey, said future decisions would be a “closer call”, so do not bet on another cut.
March
1st Regulated rail fares will not go up in England. In recent years, this has been the date for inflation-linked increases to come into effect, but in November the chancellor, Rachel Reeves, announced prices would be frozen.
The government said otherwise a full-time commuter to London from Canterbury could have seen their annual season ticket rise by more than £400, to £8,929. About half of fares are unregulated and can go up at any time. Fares in London will go up by 5.8%.
19th The second interest rate decision of the year. Some forecasters are anticipating two cuts in 2026, with the first in March.
This is also when the limit on contactless card spending is scrapped. From now on, card providers can set their own but should allow customers to choose a lower one if they want.
31st The government’s household support fund is due to end. The fund was available to councils in England to help vulnerable people with the cost of essentials. It was put in place in October 2021 as the cost of living crisis began to bite and has been extended several times.
April
1st About 2.7 million workers will get pay increases. The national living wage, paid to those aged 21 and over, is going up by 4.1% to £12.71 an hour, which will add £900 a year to a full-time worker’s earnings.
The national minimum wage for 18- to 20-year-olds is increasing by 8.5% to £10.85, while younger people and those on apprenticeships get a 6% pay rise to £8 an hour.
NHS prescription charges will not increase. Paid in England, they will remain at £9.90 for each item. They are entirely free in Wales, Scotland and Northern Ireland.
Several household bills will go up. The annual cost of a TV licence is pegged to September’s CPI inflation rate, which in 2025 was 3.8%. This will take it to just over £181 for a colour TV.
Water bills are set to rise too. Details have not been announced, but one provider has indicated it could increase bills by 11%. And council tax bills are likely to go up. Councils can raise them by up to 4.99% without a referendum.
Energy bills should fall. The leading forecaster Cornwall Insight has forecast that changes in the budget should help cut the price cap by the equivalent of £138 a year for the typical dual-fuel bill. However, how much April’s cap moves will depend on other factors, including wholesale prices.
Vehicle excise duty rates will go up in line with RPI.
6th The beginning of the 2026-27 tax year. Income tax thresholds have been frozen again, so some people getting pay rises will be pushed into a higher tax bracket.
It is the last year in which under-65s will be able to put £20,000 into cash Isas. Banks may offer good rates to encourage people to take advantage of the full allowance.
Some of the changes to inheritance tax announced in 2024’s autumn budget come into effect, cutting the reliefs available on agricultural land and business property and on shares listed on Aim.
The tax on dividends goes up from 8.75% to 10.75% for basic rate taxpayers and 33.75% to 35.75% for higher rate taxpayers. You can earn up to £500 tax-free before those rates kick in.
The two-child benefit cap ends. The change will allow families to claim universal credit and child tax credits for more than two children.
Increases in the state pension and a range of other benefits come into effect. Someone on a full new state pension will receive £241.30 a week.
New rules on how shops display prices come into effect. The changes, which were delayed from the autumn, are designed to make it easier for shoppers to compare prices by making unit prices clearer and forcing retailers to give more information about loyalty pricing.
30th The Bank of England announces its third interest rate decision of the year.
