From Monday, 6 April 2026, a wide package of measures takes effect aimed squarely at household budgets. The government has abolished the two‑child limit in Universal Credit, raised the State Pension by 4.8%, introduced day‑one Statutory Sick Pay and day‑one paternity and unpaid parental leave, and confirmed a quarterly drop in the energy price cap that trims typical bills by £117. Ministers frame this as immediate cost‑of‑living support during a period of heightened global risk. (gov.uk)

The abolition of the two‑child limit applies from today and is billed by Downing Street as lifting around 450,000 children out of poverty. Campaign groups have pressed for this since 2017; Resolution Foundation analysis suggests poverty would fall further if the separate overall benefit cap were addressed in tandem, a live debate that will matter for larger families’ real‑world outcomes. (gov.uk)

Universal Credit’s standard allowance gets its first permanent above‑inflation rise, around 6.2% this year. The Prime Minister’s office says that is worth roughly £265 a year for a single adult and £465 for a couple, with a multi‑year plan already set to lift the allowance by more than CPI through to 2029. For working‑age benefits more broadly, most are uprated by 3.8% in line with last September’s CPI. (gov.uk)

For retirees, the triple‑lock formula delivers a 4.8% State Pension rise from today. Someone on the full new State Pension now receives £241.30 a week, about £575 more over a year; the basic State Pension rises to £184.90 a week. MoneyWeek and the Government Actuary’s report both flagged this uplift months ago, noting many pensioners will edge closer to the frozen personal allowance threshold. (moneyweek.com)

Workplace rules also shift. From 6 April, Statutory Sick Pay is payable from day one and the lower earnings limit is removed, bringing many lower‑paid and part‑time staff into scope. Paternity leave and unpaid parental leave become day‑one rights too. Acas and HMRC guidance for employers highlight transitional details, so HR teams should refresh policies and payroll now. (acas.org.uk)

Pay floors moved ahead of the tax year start. The National Living Wage for workers aged 21+ has risen by 50p to £12.71 per hour, with the Low Pay Commission’s latest advice keeping the rate near two‑thirds of median pay. For a full‑time worker on 37.5 hours, that’s about £975 a year extra before tax. (acs.org.uk)

Energy bills fall this quarter after Ofgem confirmed the price cap for 1 April–30 June drops 7% (about £117) for a typical dual‑fuel household paying by direct debit. Industry groups say part of the saving reflects policy costs being moved off bills and into general taxation, though the regulator will set the next cap by late May for the July–September period. (ofgem.gov.uk)

Fuel duty policy remains supportive in the near term. The Treasury has extended the temporary 5p‑per‑litre cut on petrol and diesel until 31 August 2026, with staged reversals scheduled from September. Separately, the government has earmarked £53 million to help households most exposed to surging heating‑oil prices after the recent spike, with charities welcoming the move but warning it may prove insufficient if high prices persist. (gov.uk)

Why now matters globally: shipping and energy markets remain disrupted by the war involving Iran, with Britain convening more than 40 countries last week to press for reopening the Strait of Hormuz. Any progress here would feed through to freight and fuel costs; equally, setbacks would keep price pressures alive into the summer. (apnews.com)

What this adds up to for households is incremental relief rather than a windfall. A full‑time worker on the NLW might see roughly £81 more a month before tax from the wage rise, plus about £10 a month from the energy bill cut. A pensioner on the full new State Pension gains about £11 a week. Families previously hit by the two‑child limit could see a step‑change in monthly UC support, though the separate benefit cap will still shape final awards. (moneyweek.com)

For SMEs, today’s rules carry both positives and new costs. The higher wage floor and day‑one sick pay improve staff security and should reduce presenteeism, but cashflow planning matters: tighter absence management, clear return‑to‑work processes and updated contracts are now essential. With Ofgem’s cap lower through June and fuel duty steady until the end of summer, energy and transport budgets get a modest near‑term breather. (acas.org.uk)

The next checkpoints are already in view: Ofgem’s July–September cap decision by 27 May, official benefit payment calendars bedding in across April, and early data on sickness absence patterns under the new regime. We’ll monitor how these changes filter into inflation, retail demand and margins as Q2 unfolds. (energyscan.co.uk)