Looking at living cost in 2026, Prime Minister Keir Starmer showed government commitment. Among the most important measures are freezing of rail fares, prescription charges in England, and fuel duty. All these measures help to avoid sharp increases in essential expenses of travelling, health, and motoring.

Benefit Upratings A Welcome Boost

In April 2026, there comes a wave of major benefits and pensions partly due to inflation. Most working-age benefits will be increased by 3.8% in accordance with September 2025 inflation.

Here’s a quick comparison of key rates:

Benefit/Pension	2025/26 Rate (example)	2026/27 Rate (approx.)	Increase
New State Pension (full weekly)	£230.25	£241.30	4.8%
Universal Credit (single, 25+)	£400.14/month	£424.90/month	~6.2%
Universal Credit (single, under 25)	£316.98/month	£338.58/month	~6.2%

Local And Targeted Assistance

The Household Support Fund (HSF) continues until March 2026, with £742 million allocated to councils. This provides vouchers, cash up to £300, or help with appliances and bills for vulnerable households.

From April 2026, it transitions to a new Crisis and Resilience Fund, incorporating housing payments for ongoing emergency aid.

Households on low incomes or certain benefits qualify. Contact your local council to apply, as support varies by area.

Additional Measures Easing Pressures

Social tariffs remain available for broadband and water bills, offering discounts to eligible low-income families.

The removal of the two-child benefit cap from April 2026 lifts more children out of poverty.

Energy bill support through schemes like the Warm Home Discount persists for qualifying households.

Looking Ahead Building Financial Stability

While no national one-off Cost of Living Payments occur in 2026, these combined measures—freezes, upratings, and local funds—offer substantial help.

Experts note inflation is past its peak, with Budget policies projected to reduce it further.

Households should check eligibility for unclaimed benefits, worth billions annually.