Issued by: Cabinet Office

We're taking action to help families with the cost of living, here is what you need to know.

We know that families across the country are feeling the impact of the cost of living - it’s the number one issue impacting working people.

It’s why we’re taking action to reduce everyday costs, whether it’s freezing rail fares and prescription charges or increasing wages and lowering energy bills. We are taking practical steps to help ease the pressure.

Here is what you need to know about the support we’re delivering.

An average of £150 off the costs of energy bills

We announced in the Autumn Budget that we would help people manage the cost of keeping their homes warm, including by taking an average of £150 off the costs of energy bills from April.

The energy regulator Ofgem has now confirmed the energy price cap for April – which limits the amount customers on standard variable tariffs pay for each unit of gas and electricity – will fall by 7%.

You do not need to do anything to claim the savings. These will be automatically applied to your bill from 1 April onwards, including to those on fixed tariffs.

The exact amount each household saves will depend on how much energy is used and the type of tariff.

Find out more about changes to the price cap here: [https://tinyurl.com/4phm74zx]

This support is on top of the Warm Home Discount Scheme - a one-off £150 discount off your electricity bill - a total package of £300.

There’s also lots of things you can do at home to save money on your energy bills, check these top tips: [https://tinyurl.com/5dmeajvb]

Pay boost for millions of workers

2.7 million workers will receive a 4% pay rise from April this year, as both the National Living Wage and National Minimum Wage increase.

That means that full-time workers on the National Living Wage will see a rise of £900 a year, while full-time workers on the 18-20 National Minimum Wage rate will see a £1,500 rise.

This will boost millions of low-income workers, as part of our commitment to raising living standards throughout the country.

You can check the rates that apply to you here: [https://tinyurl.com/ytszp75e]

Rail fares frozen

For the first time in 30 years, we have capped rail fare increases across England and parts of Wales for 2026.

The freeze will apply to all regulated fares, including seasons, peak returns for commuters and off-peak returns between major cities, benefitting more than a billion passenger journeys across England.

Commuters on some of the busiest routes will not see an increase in fares. This means that a typical commuter travelling to work 3 days a week using flexi-season tickets will save £315 per year, travelling from Milton Keynes to London for example.

You can find out more here: [https://tinyurl.com/y99yx3tm]

Prescription charges staying under £10

For 2026, the cost of prescriptions in England will stay under £10, keeping essential medicines affordable.

Prepayment Certificates and existing exemptions remain unchanged.

This will help make sure no one places themselves at risk by not taking their medication due to the cost.

Find out more about prescription costs and exemptions here: [https://tinyurl.com/5wf23wub]

State Pension increase

From April 2026, the New State Pension will increase by 4.8%, benefiting millions of pensioners with above-inflation payments.

This boosts the full New State Pension to £241.30 weekly (£12,547.60 annually).

See how this affects you here: [https://tinyurl.com/y85mpa3p]

Removing the two-child limit on Universal Credit

From April 2026, the two-child limit on Universal Credit will be removed so that families can receive Universal Credit support for all their children, regardless of family size.

This will lift an estimated 450,000 children out of poverty and make sure children have the best start in life.

Find out more about Universal Credit here: [https://tinyurl.com/ywh5d976]

Up to 30 hours of government-funded childcare

Eligible working parents in England can get up to 30 hours a week of government-funded childcare for 38 weeks of the year, for children aged 9 months up to school age.

This support helps with the cost of childcare and makes it easier to juggle work and family life, saving you up to £7,500 per year.

You can find advice and support for your child’s development on our Best Start in Life website here: [https://tinyurl.com/5cx32bcc]

Free breakfast clubs for primary school children

Free breakfast clubs are rolling out to every primary school in England.

Since April 2025, we’ve delivered 5 million meals through our free breakfast clubs early adopter scheme.

Our 30-minute free breakfast clubs help ensure pupils start every day ready to learn, and in turn improve behaviour, attendance and attainment.

As well as helping children thrive academically and socially, breakfast clubs give parents and carers more choices in childcare, and support working families with the cost of living – putting up to £450 a year back in parents’ pockets.

Click here to find out more: [https://tinyurl.com/mw6e5kr5]

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