From 6 April 2026, a package of benefit, pension and employment reforms comes into force across the UK, alongside earlier changes to wages and household energy bills on 1 April. Downing Street set out the measures on 5 April, positioning them as immediate cost‑of‑living support amid global uncertainty. (gov.uk)
The two‑child limit in Universal Credit ends from 6 April 2026. The Department for Work and Pensions (DWP) confirms the removal applies prospectively so that families can receive the child element for all children, and distinguishes this reform from the separate overall benefit cap. The House of Commons Library notes the change was trailed at the November 2025 Budget. (gov.uk)
On poverty impacts, DWP modelling estimates 450,000 fewer children in relative low income after housing costs by the end of the Parliament (financial year ending 2030) as a result of removing the limit. That estimate is for FYE 2030 and grows over time as more families are affected. (gov.uk)
Universal Credit standard allowances increase by around 6.2% in 2026/27. This reflects a 3.8% CPI uprating plus an additional 2.3% uplift legislated in the Universal Credit Act 2025 to begin re‑balancing UC’s basic rates. Illustratively, the weekly standard allowance for a single claimant aged 25+ rises from about £92 to £98, and for a couple from about £145 to £154. New health‑related elements for most new claimants are reduced, with protections for existing awards. (commonslibrary.parliament.uk)
State Pensions rise by 4.8% from 6 April 2026 under the triple lock. The Government Actuary’s report and ministerial statements indicate this takes the full new State Pension to £241.30 a week-roughly £575 more a year-while pre‑2016 elements rise as specified. (gov.uk)
Most working‑age benefits, including Personal Independence Payment and Housing Benefit elements, increase by 3.8% from April 2026, in line with the September 2025 CPI figure. Departmental circulars and parliamentary briefings set out the detailed rates and effective dates. (commonslibrary.parliament.uk)
The Employment Rights Act 2025 begins a major implementation phase on 6 April 2026. Statutory Sick Pay is payable from day one and the lower earnings limit is removed, expanding eligibility for lower‑paid and part‑time staff. Paternity leave and unpaid parental leave become day‑one rights, with transitional guidance in place for claims straddling the change. (gov.uk)
Employers should update absence, family‑leave and payroll policies now. Budget for higher SSP outlays where contractual sick pay does not apply, retrain line managers on day‑one entitlements, and check workforce communications for staff on atypical or variable hours. Sector bodies and professional institutes have issued practical checklists ahead of the April switch‑over. (cipd.org)
Minimum wage changes took effect on 1 April 2026. The National Living Wage for workers aged 21+ increases by 4.1% to £12.71 per hour, with National Minimum Wage rates for younger workers also rising as confirmed by the government following Low Pay Commission advice. (gov.uk)
Ofgem’s price cap for 1 April to 30 June 2026 lowers a typical dual‑fuel bill by about £117 a year (around 7%) compared with the previous quarter, with the regulator attributing part of the fall to policy cost changes moved into general taxation. (ofgem.gov.uk)
Fuel duty support is extended to 31 August 2026, with the temporary 5p cut then unwound in stages: +1p on 1 September 2026, +2p on 1 December 2026 and +2p on 1 March 2027, as set out in Budget documents and the OOTLAR. (gov.uk)
Targeted help is also being directed at off‑grid households reliant on heating oil, with £53 million announced on 16 March 2026 and devolved allocations subsequently confirmed. This sits alongside a ministerial “legal direction” to ensure energy suppliers pass through savings from policy changes. (gov.uk)
Ministers explicitly link the domestic package to efforts to de‑escalate Middle East tensions and reopen the Strait of Hormuz to stabilise prices. The UK has coordinated statements with partners and convened a meeting of more than 40 countries to press for reopening the waterway. (gov.uk)
For households and employers, the near‑term actions are practical. Families affected by the two‑child rule should update UC claims after 6 April; pensioners will see increased amounts in April/May payment cycles; HR teams should apply day‑one SSP and leave eligibility for absences and births falling on or after 6 April. Monitor fuel duty timelines and Ofgem’s July–September cap for the next round of price signals. (gov.uk)