Table of Contents
From lower energy bills and frozen rail fares to higher wages and a State Pension boost, ministers say the steps are designed to reduce everyday costs and raise living standards.
Here’s what’s changing and how it could affect you.
1. £150 off energy bills from April
Households will see an average of £150 taken off energy bills from April, following confirmation from energy regulator Ofgem that the energy price cap will fall by 7%.
The cap limits the amount customers on standard variable tariffs pay per unit of gas and electricity.
The discount will be automatically applied from 1 April, including for customers on fixed tariffs. The exact saving will depend on usage and tariff type.
This comes on top of the Warm Home Discount Scheme, which provides a one-off £150 discount on electricity bills — meaning some eligible households could benefit from support worth £300 in total.
2. Pay rise for 2.7 million workers
Around 2.7 million workers will receive a 4% pay rise from April as both the National Living Wage and National Minimum Wage increase.
Full-time workers on the National Living Wage will see an estimated £900 boost per year.
Full-time workers aged 18–20 on the lower rate will see a rise of around £1,500 annually.
The increase is part of wider efforts to lift incomes for low-paid workers.
3. Rail fares frozen
For the first time in 30 years, regulated rail fare increases across England and parts of Wales have been capped for 2026.
The freeze covers season tickets, peak and off-peak regulated fares, benefitting more than a billion passenger journeys.
A commuter travelling three days a week using flexi-season tickets between Milton Keynes and London, for example, could save around £315 per year.
Recommended reading:
4. State Pension rising by 4.8%
From April 2026, the New State Pension will increase by 4.8%.
The full New State Pension will rise to £241.30 per week, or £12,547.60 per year, delivering above-inflation support for millions of pensioners.
The third reading of the Universal Credit (Removal of Two Child Limit) Bill moves us closer to tackling child poverty
It’s an investment in our country’s future – giving more children the best start in life
We are delivering the biggest cut to child poverty in a generation pic.twitter.com/9bgt69f0Aa
— Department for Work and Pensions (@DWPgovuk) February 24, 2026
5. Universal Credit two-child limit removed
From April 2026, the two-child limit on Universal Credit will be scrapped, allowing families to receive support for all children regardless of family size.
The change is expected to lift around 450,000 children out of poverty.
Universal Credit is administered by the Department for Work and Pensions.
