Why 2026 is a big year for your money
Unlike some years, 2026 doesn’t bring constant monthly tweaks. Instead, several major financial changes land at once, mainly from April 2026.
These affect:
- Your pay packet
- Benefits and pensions
- Tax on investments and dividends
- Self-employed tax admin
- Transport costs
If you work, invest, claim benefits, run a side hustle, or rely on public transport, 2026 matters.
April 2026: The main changeover month
National Living Wage and Minimum Wage rise
Confirmed: New statutory minimum wage rates take effect from April 2026.
- National Living Wage increases
- Youth and apprentice rates also rise
- Applies across the UK
If you’re salaried, check your annual salary still meets minimum wage rules once hours are taken into account – underpayment is more common than you think.
Internal link: Minimum wage calculator
Benefits and State Pension rates change
Confirmed: New benefit and pension rates apply for the 2026–27 tax year.
This includes changes to:
- State Pension
- Universal Credit
- Child Benefit
- PIP, DLA and disability benefits
Your first full payment after April is the one to check – notification letters often arrive late or show transitional amounts.
Internal link: Benefits articles
Dividend tax rates increase
Confirmed: From 6 April 2026, higher dividend tax rates apply.
This affects:
- Share investors
- Company directors paying themselves via dividends
- Anyone with investments outside an ISA
This makes ISAs even more valuable. If you haven’t used your allowance, review this before the end of the 2025–26 tax year.
Internal link: Dividend tax explained
Making Tax Digital becomes mandatory for more people
Confirmed: From April 2026, Making Tax Digital for Income Tax becomes compulsory for:
- Self-employed people
- Landlords
- With qualifying income over £50,000
You will need to:
- Keep digital records
- Send quarterly updates to HMRC
- Use HMRC-approved software
You don’t have to hire an accountant – but you do need compliant software. Free and low-cost options exist.
Internal link: Making Tax Digital checklist
State Pension age changes begin
Confirmed: The long-planned rise in State Pension age to 67 begins its phased rollout from April 2026.
- Affects people born after April 1961
- This timetable is already set in law
Don’t assume your pension date based on age alone. Use the official checker to confirm your exact State Pension date.
Transport costs in 2026
Bus fares (England)
The £3 national bus fare cap is confirmed to end in 2025.
As it stands:
- No nationwide bus fare cap is legislated for 2026
- Local authorities may still offer discounts
If you rely on buses, check local travel schemes early in 2026 – savings can vary hugely by postcode.
Rail fares
Rail fare changes usually happen annually, but:
- No nationwide rail fare policy for 2026 has been confirmed in law yet
This is an area where headlines often run ahead of reality – and why we’re sticking to confirmed changes only.
❌ What is not confirmed for 2026
Despite frequent headlines, the following are not currently confirmed:
- Income tax threshold changes
- National Insurance reform
- Council tax caps
- Energy price guarantees
- ISA allowance increases
If these appear in the news, they are political proposals, not policy.
How to prepare for 2026 now
- ✔ Check your April 2026 pay rise lands correctly
- ✔ Review dividend and investment tax exposure
- ✔ Confirm whether Making Tax Digital applies to you
- ✔ Check your State Pension age
- ✔ Budget for potential transport cost rises
Final word
2026 isn’t about endless tweaks – it’s about a few big, definite shifts that quietly change how much money stays in your pocket.
Ignore the noise. Focus on what’s written into policy.
That’s where the real impact always is.
I was born in March 1961 and I don’t get my pension until I am 67. Check on the .gov site in case you are affected too.