What Changes Are Coming in 2026 | Personal Finance

People will see many changes in their money and bills in 2026. Some costs will go up but there are also good changes to help families and workers.

Rising Bills and Taxes

Energy bills are expected to rise at the start of the year and may go higher in April. TV licence fees and water bills will also increase.

Taxes will go up too. Alcohol duty rises in February. Council tax, car tax and air passenger duty will increase in April. Fuel duty cuts will slowly end by March 2027. There will also be a new tax on vaping and higher tobacco taxes later in the year.

Investors will face changes as well. Dividend taxes will rise and tax relief on some investments will fall. Inheritance tax will affect farms, businesses and shares after the first £1 million of assets. Income tax thresholds will stay the same. Which may make some people pay more tax.

Good News for Families and Workers

Not all changes are bad. Rail fares will stay the same and bus fare caps will continue. Prescription charges will stay at £9.90 per item.

State pensions will rise by 4.8 percent. Families on lower incomes will benefit because the two child benefit cap ends. Free school meals will be available to more children in England.

The minimum wage will go up above inflation. Younger workers will see bigger increases.

Buy now pay later services will be regulated. This will help people understand their payments and get support if they have problems.

2026 will bring both challenges and support for people. Bills and taxes are rising but pensions, wages and family benefits are improving. It is important for everyone to plan their money carefully for the year ahead.