UK households face higher costs in 2026 due to rising energy, alcohol, water, and tax prices, alongside benefit and tax rule changes.

In 2026, UK households face rising costs and key financial changes. The energy price cap increases by 28p monthly, while alcohol duty rises 3.66% and water bills may jump 11%. The national living wage rises 4.1% to £12.71, with younger workers seeing larger increases. NHS prescriptions stay at £9.90, but council tax, car tax, and the TV licence fee are expected to rise. Crypto traders must now provide personal details for tax compliance. The two-child benefit cap is lifted, and ISA allowances must be used by April 5. Remote workers lose home office tax relief, and new rules strengthen Buy Now Pay Later protections. The temporary fuel duty freeze ends in August, and vaping and tobacco taxes increase.