Rising costs and financial relief collide as the new year begins. From changes to the energy price cap and alcohol duty, to increases in the national living wage and a new approach to interest rates, the first four months of 2026 will bring a series of developments likely to affect household budgets across the UK.
As inflation continues to decline and economic indicators shift, consumers and businesses alike will be keeping a close eye on decisions from the Bank of England, regulatory changes from Ofgem, and government policy updates. Below is a breakdown of the main financial milestones taking place through April 2026.
Energy Price Adjustment and Taxation Shifts in January and February
From the very start of the year, households will see a small rise in energy bills, with Ofgem increasing the energy price cap by 0.2% on 1 January. According to the Guardian, this brings the average dual-fuel bill to £1,758 for those who pay by direct debit. While the prepayment cap is lower, customers who pay in arrears face a higher rate. The actual bill will still vary depending on usage and individual tariff.
In the same month, tax rules around cryptoassets also become stricter. From 1 January, individuals buying, selling or transferring digital assets including bitcoin and NFTs must now provide full identification details to providers, including their national insurance number, in line with updated HMRC reporting requirements.
On 21 January, attention will turn to the Office for National Statistics, which is set to publish inflation figures for December. The previous month’s data showed inflation at 3.2%, and the new release will be watched closely by policymakers.
By the end of the month, on 31 January, several important deadlines come into effect. It marks the final day for submitting self-assessment tax returns for the 2024–25 financial year. Last year, more than a million people missed this deadline, according to the Guardian. It is also the deadline for energy firms to make available at least one low-standing charge tariff, a requirement that stems from Ofgem‘s revised pricing policy.
Moving into February, taxation on alcohol is set to rise. From 1 February, alcohol duty increases by 3.66% in line with RPI inflation. This change will add roughly 10p to a bottle of white wine and nearly 40p to a standard bottle of whisky. On 5 February, the Bank of England is scheduled to make its first interest rate decision of the year, following a cut to 3.75% in December 2025. The Bank’s governor has indicated that future decisions may be finely balanced.
Household Incomes and Living Costs Shift in March and April
The government has confirmed that regulated rail fares in England will be frozen from 1 March. This move prevents a potential £400 increase in some annual season tickets. Meanwhile, London fares will rise by 5.8%. On 19 March, the Bank of England will issue its second interest rate decision of the year, a move that could influence borrowing costs.
New contactless payment rules will also begin from 19 March, with banks now allowed to set their own spending limits, though they are expected to give customers more control over those limits.
By 1 April, nearly 2.7 million workers will receive pay increases, as the national living wage rises by 4.1% to £12.71 an hour. The minimum wage for 18- to 20-year-olds will go up by 8.5% to £10.85, and apprentices and younger workers will also see increases. Meanwhile, TV licence fees will increase in line with the September CPI inflation rate of 3.8%, reaching just over £181 annually. Water bills and council tax are also expected to rise, with some councils considering increases of up to 4.99%.
In contrast, energy bills may fall in April. Cornwall Insight forecasts a £138 annual reduction in the typical dual-fuel bill due to budget changes. On 6 April, the 2026–27 tax year begins, bringing with it changes to inheritance tax reliefs, dividend tax rates, and ISA allowances. The two-child benefit cap will also be removed, and increases to the state pension and various benefits will take effect, with full state pension payments rising to £241.30 per week. The next interest rate update will follow on 30 April, rounding off a turbulent financial start to 2026.
