Cost-of-living support in 2026

What cost-of-living support is available in 2026?

In this blog we outline the Government support currently in place, new measures launching in April 2026, and the key cost-of-living developments to be aware of in the year ahead. Support varies across the UK, so it’s always worth checking details with your local authority.

The Government has confirmed that no new cost of living payments will be issued for the rest of 2026. Instead, this year’s support will come from lower energy bills and existing targeted schemes, rather than direct cash payments.

Energy bills

Energy price cap

Ofgem has confirmed that the energy price cap will fall by 7% from April 2026, reducing the unit cost of gas and electricity for those on standard variable tariffs. These reductions were automatically applied from 1st April, including for customers currently on fixed tariffs.

The new cap will remain in place until the start of July 2026, even amid global energy uncertainty related to world events.

Warm home discount

Eligible households can receive a one-off £150 discount on their electricity bill through the Warm Home Discount scheme.

Eligibility includes:

• Being in receipt of a means-tested benefit, such as Universal Credit, Housing Benefit, or Pension Credit Guarantee
• Having an energy supplier that participates in the scheme

Most eligible customers receive this discount automatically. In Scotland, some low-income households may need to apply directly to their supplier.

Where a supplier provides both gas and electricity, customers may request the discount be applied to their gas bill instead.

Heating oil support fund

The cost of heating oil (kerosene) has risen sharply due to conflict in the Middle East. Households that rely on heating oil are not protected by the energy price cap, meaning they feel price increases more quickly than gas and electricity customers.

To support these households, the Government has introduced over £50 million of targeted help, including: 

• From 1st April 2026, funding has been distributed through local authorities in England via the Crisis and Resilience Fund.
  • Note: this support varies across the country.
• The Crisis and Resilience Fund replaces the Household Support Fund, which ends 31 March 2026.
• Support is prioritised for areas with high reliance on heating oil, using Census data to identify need.
• Funding is also provided directly to devolved governments to help vulnerable households in Scotland, Wales and Northern Ireland.
• In many cases, successful applicants may receive funds within 48 hours of approval.

For more information, visit Money Saving Expert.

Tips to reduce energy usage

If you’re looking to reduce your overall energy usage, we’d also suggest these tips:

• Reduce combi-boiler flow temperature to 60°C 
• Identify and seal draughts 
• Turn radiators down (but not off) in unused rooms

Pay, income, and outgoings

Pay boost for millions of workers

From April 2026, 2.7 million workers will receive a 4% pay rise, as both the National Living Wage and National Minimum Wage increase. This aims to raise living standards for low-income workers.

Important: this change does not apply to freelancers or self-employed people, as minimum wage legislation covers only employees and ​“workers.” 

Rail fare freeze for 2026

For the first time in 30 years, rail fare increases across England and parts of Wales will be capped for the whole of 2026. This aims to help commuters manage rising travel costs. This freeze applies to all regulated fares, including: 

• Season tickets 
• Peak commuter returns 
• Off-peak returns between major cities 
• Check with your own rail network for further details

Prescription charges staying under £10

Throughout 2026, the cost of NHS prescriptions in England will remain under £10, helping to keep essential medication affordable. 

People who pay for frequent medication may benefit from a Prescription Prepayment Certificate (PPC), which provides unlimited prescriptions over a set period and often works out cheaper.

State pension increase

From April 2026, the new State Pension will rise by 4.8%, giving millions of pensioners an above inflation uplift. The full New State Pension will increase to:

• £241.30 per week 
• £12,547.60 per year 

This increase aims to help pensioners manage higher living costs. 

Fuel duty to increase in 2026–27

The temporary 5p fuel duty cut, introduced in 2022, ended on 23 March 2026. Fuel duty will then rise in stages: 

• From 1 September 2026: +1p per litre 
• From 1 December 2026: +2p per litre

These increases will gradually raise petrol and diesel prices throughout the year.

Childcare and support

Removal of the two child limit on Universal Credit

From April 2026, the Government will remove the two-child limit on Universal Credit. This means families will now receive UC support for all children in the household, regardless of family size. The change aims to provide fairer support and reduce child poverty.

Up to 30 hours of government funded childcare 

Eligible working parents in England can access up to 30 hours of government-funded childcare, for 38 weeks of the year, for children aged nine months up to school age. This support helps reduce childcare costs and enables parents to balance work and family life.

Free breakfast clubs for primary school children 

• Free breakfast clubs are being rolled out to every primary school in England. 
• Each club provides 30 minutes of free breakfast, supporting children to arrive at school ready to learn and allowing 30 minutes of free childcare. 

Financial support from the Film and TV Charity 

The Film and TV Charity offers financial support to anyone working behind the scenes in the film, TV, and cinema industry – whether you’re a freelancer, in full time employment, or facing an unexpected financial crisis.

Stop-Gap Grants

If you’re struggling to cover rent, mortgage payments, or essential household bills, we may be able to help. Check eligibility and how to apply.

Financial guidance

Access practical tips, clear guidance/​signposting, and industry specific insight to help you manage your money – from taxes and benefits to budgeting as a freelancer.