A package of cost‑of‑living changes took effect on 6 April 2026. The two‑child limit in Universal Credit has been removed, with government modelling indicating up to 450,000 fewer children in relative low income once the reform is fully reflected in the data. Most working‑age benefits rise by 3.8% in line with September CPI, while the new State Pension is uprated by 4.8% under the triple lock. Ministers frame the mix as immediate support for households alongside measures to steady prices in a volatile year. (gov.uk)

The National Living Wage stepped up to £12.71 an hour from 1 April for workers aged 21 and over, with youth and apprentice rates also increasing. For a full‑time 35‑hour worker that 50p rise is worth roughly £910 a year before tax. Employers should budget for on‑costs too: the standard employer National Insurance rate has been 15% since April 2025, so the same worker’s pay rise implies about £136 in extra NIC per year. (gov.uk)

Workers’ protections also shift. From April, paternity and unpaid parental leave become day‑one rights, and Statutory Sick Pay moves to payment from the first day of illness rather than day four. SMEs should revisit absence policies and cashflow assumptions, as eligibility changes can nudge short‑term payroll costs higher even if overall productivity benefits follow. Official guidance from Acas and GOV.UK sets out the new rules. (acas.org.uk)

For pensioners, the full new State Pension rises by 4.8% this month - worth up to about £575 a year - reflecting average earnings growth between May and July 2025. That takes the full new rate to around £241.30 per week. Meanwhile, the standard Universal Credit allowance sees a permanent above‑inflation uplift this year of about 6.2%, with ministers citing gains of roughly £265 a year for a single adult and £465 for a couple. (hansard.parliament.uk)

Energy bills provide a modest tailwind into early summer. Ofgem’s April–June price cap trims a typical annual dual‑fuel bill to £1,641 - a fall of 7% or £117 versus the previous quarter - though actual savings vary with usage. Off‑grid households face a different reality: heating oil prices have spiked, prompting a targeted £53m support package for the most exposed homes. (ofgem.gov.uk)

Fuel duty stays frozen through 31 August 2026 before a staged reversal begins, but wholesale pressures have already pushed forecourt prices higher. RAC data point to one of the sharpest monthly jumps on record in March, underscoring how global supply risks can swamp tax policy at the pump. Businesses reliant on road transport should expect fuel surcharges to remain volatile. (gov.uk)

The external shock is clear. Around a fifth of global petroleum liquids typically moves through the Strait of Hormuz, and London‑market insurers have curtailed war‑risk cover in the Gulf. The UK has convened more than 40 countries to press for de‑escalation and the reopening of the strait - a prerequisite for easing energy and shipping costs back towards pre‑crisis levels. (eia.gov)

For households, the near‑term maths is mixed. A full‑time NLW earner is roughly £75 a month better off before tax; a pensioner on the full new State Pension gains about £11 a week; and the Ofgem cap saves around £10 a month through June. Those benefits can be chipped away by dearer fuel and some food inputs tied to oil, so the headline boost won’t feel uniform. (gov.uk)

For SMEs, wage floors and day‑one sick pay increase predictability for staff but add to fixed costs. As a rule of thumb, a team of ten NLW employees on 30‑hour contracts implies c.£7,800 extra gross wages a year, plus roughly £1,170 in employer NIC before pensions - partially offset by the Employment Allowance where eligible. Factor in possible delivery surcharges if suppliers are passing through higher diesel and insurance costs. (gov.uk)

Data to watch next: the ONS March CPI on Wednesday 22 April will be the first inflation print capturing the initial post‑February oil shock alongside April uprating effects feeding into expectations. Until shipping lanes normalise and wholesale markets settle, policy support - from benefit uprating to the fuel duty freeze - acts as a buffer rather than a cure. (ons.gov.uk)