Government Support Measures Begin in April
The Government has introduced a new package of support from 1 April 2026 to help households manage ongoing cost-of-living pressures.
This comes as global tensions in the Middle East disrupt oil supplies, increase fuel prices, and add further strain to household budgets across the UK.
Many families had already begun cutting back spending before the latest rise in energy costs and surveys show growing concern about the year ahead.
Ministers say they aim to stabilise costs and support incomes while encouraging economic stability both domestically and internationally.
KEY TAKEAWAYS
- Statutory pay rates have increased to boost earnings for lower-paid workers.
- Household energy costs have fallen in the short term, with additional targeted support now in place place.
- Capped healthcare costs aim to protect vulnerable groups.
1. Higher Statutory Pay from April 2026
From 1 April 2026, the minimum pay rates have increased:
- Workers aged 21 and over (National Living Wage)
- New rate: £12.71 per hour
- Increase: 4.1%
- Estimated annual gain: around £900 (depending on hours)
- Affects roughly 2.4 million workers
- Workers aged 18 to 20 (National Minimum Wage)
- New rate: £10.85 per hour
- Increase: 8.5%
- Estimated annual gain: around £1,500
- Affects over 200,000 workers
The Living Wage Foundation welcomed the rise but noted it still falls below the voluntary Real Living Wage:
- £13.45 across the UK
- £14.80 in London
These voluntary rates are based on actual living costs rather than legal minimums.
The Low Pay Commission also pointed out that both employers and workers continue to face financial pressure.
2. Energy Bills Reduced (For Now)
Ofgem has lowered the energy price cap for the period 1 April to 30 June:
- New annual cap: £1,641
- Previous cap (Jan–Mar): £1,758
- Reduction: 6.6%
This provides short-term relief for households, reflecting earlier wholesale energy prices before recent geopolitical tensions escalated.
However, there are concerns about what comes next:
- Prices could rise again from July to September
- Some forecasts suggest bills may approach £2,000 annually
The Government is considering targeted support rather than broad discounts, focusing on lower-income and vulnerable households.
Energy experts warn that rising global instability—especially in gas markets—continues to influence UK energy prices, limiting how much control policymakers have.
3. NHS Prescription Charges Frozen
Prescription costs in England will remain unchanged for the 2026/27 financial year:
- England: £9.90 per item
- Scotland: Free
- Wales: Free
- Northern Ireland: Free
Keeping the charge below £10 is intended to reduce pressure on household budgets.
However, campaigners say this does not go far enough. People with long-term conditions who do not qualify for exemptions still face repeated costs for essential medication.
Advocacy groups are calling for automatic exemptions for conditions such as:
- Parkinson’s disease
- Multiple sclerosis
- Asthma
- HIV
At present, the policy maintains current charges but does not expand eligibility for free prescriptions in England.
4. New Crisis and Resilience Fund
A new £1 billion per year support scheme launched on 1 April 2026, running until March 2029.
- Delivered by local councils in England
- Funded by central government
- Replaces the previous Household Support Fund
Who it helps
The scheme targets people facing urgent financial difficulty, including:
- Households in or near poverty
- Disabled individuals
- Older residents
What support covers
Applicants can receive help with essential costs such as:
- Energy bills
- Food and groceries
- Clothing
- Basic household goods and furniture
Local authorities decide how funding is distributed based on need in their area.
The Government has said funding could increase if energy prices rise further.
Wider Impact
The Trussell Trust described the fund as an important step in strengthening emergency support, helping people avoid severe hardship and maintain access to basic essentials.
However, the charity also stressed that short-term financial aid cannot replace broader reforms. It argues that current social security levels remain too low to protect many households from ongoing financial pressure.
