Ministers have confirmed a package of welfare, pensions and employment‑law changes taking effect across the first week of April 2026. A Downing Street notice published on 5 April frames the measures as immediate cost‑of‑living support alongside efforts with international partners to de‑escalate tensions and press for reopening the Strait of Hormuz. (gov.uk)
From Monday 6 April, the government removes the two‑child limit in Universal Credit and Child Tax Credit. The Department for Work and Pensions says the change will lift an estimated 450,000 children out of poverty in the final year of this Parliament, with updates applied automatically for families already on Universal Credit. (gov.uk)
Employment law shifts begin the same day. The Employment Rights Act 2025 makes paternity leave and ordinary parental leave ‘day one’ rights from 6 April 2026, and brings Statutory Sick Pay onto a day‑one footing while removing the lower earnings limit. Employers should update policies, payroll and HR systems in line with the published timetable. (acas.org.uk)
Pensions are uprated from 6 April. Under the triple lock, the basic and new State Pensions rise by 4.8%, taking the full new State Pension to £241.30 a week-around £575 more a year-according to statements to Parliament and the published rates schedule. Public service pensions in payment generally rise by 3.8% in line with CPI. (hansard.parliament.uk)
Most working‑age benefits, including Personal Independence Payment and Housing Benefit, increase by 3.8% from April 2026 in line with the September 2025 CPI rate, as set out by the House of Commons Library and the official benefit‑rates tables. (commonslibrary.parliament.uk)
Alongside inflation‑linked uprating, the Universal Credit standard allowance receives an additional above‑inflation increase this year. Budget documentation indicates a rise of over 6% from April 2026; ministers state this is 6.2% and describe it as the first permanent real‑terms uplift to the core UC rate. At the same time, DWP will rebalance support by setting the UC health element for new claims at £50 per week from April, with protections for existing recipients. (gov.uk)
Pay floors moved earlier in the week. From 1 April 2026 the National Living Wage for workers aged 21+ is £12.71 per hour, with youth and apprentice rates also uprated. Employers should check that April pay runs reflect the new legal minima and any knock‑on effects for differentials. (gov.uk)
Energy bills fall for the current quarter. Ofgem has set the default tariff cap at £1,641 for a typical dual‑fuel household paying by Direct Debit between 1 April and 30 June 2026-down £117 (7%) on the January–March cap. HM Treasury has previously confirmed policy changes to environmental levies from April that contribute to lower bills alongside wholesale price movements. (ofgem.gov.uk)
Fuel duty policy is time‑limited. The temporary 5p per litre cut is extended until 31 August 2026, after which rates will rise in stages-by 1p on 1 September 2026, 2p on 1 December 2026 and 2p on 1 March 2027-returning to pre‑2022 levels. (gov.uk)
Targeted support is being deployed for off‑grid households. The government has announced £53 million for families most exposed to surging heating‑oil costs, with devolved allocations and English distribution via local authorities. Departments note this sits alongside the new Crisis and Resilience Fund which launched on 1 April. (gov.uk)
The Prime Minister’s office highlights continued international engagement aimed at easing price pressures. The UK has convened more than 35–40 countries to press for reopening the Strait of Hormuz and has held meetings with energy, insurance and shipping leaders in London. Any improvement in maritime access would help stabilise energy costs. (apnews.com)
What professionals should do now is straightforward. Employers should brief managers on day‑one parental‑leave entitlements, adjust sickness‑absence and payroll rules for Statutory Sick Pay from 6 April, and verify compliance with the new minimum wage rates that started on 1 April. Pension administrators and payroll teams should check updated State Pension and benefit‑interaction thresholds against April pay runs. (acas.org.uk)
Households and advisers should expect most uprating changes to flow automatically from April payment cycles, but it is prudent to check award notices against the published DWP rates and query discrepancies with the relevant department. For families with more than two children on Universal Credit, the two‑child restriction is removed from 6 April-no separate claim step is required for existing UC recipients. (gov.uk)