Cost of living support in 2026 confirmed for UK households – full list | Personal Finance | Finance

Winter is an expensive time of year for most UK households, with heating bills to contend with and higher energy costs due to spending more time indoors.

This, coupled with the rising cost of living, means many may have kicked off the new year feeling pretty cash-strapped, but there is support available to help those who are feeling the strain. The UK Government has this week confirmed an array of cost-of-living support that is available to households in 2026 to boost their income and help reduce everyday costs. The support ranges from cutting energy bills to freezing rail fares, and giving a pay rise to more than two million workers in the new tax year.

The Cabinet Office said: “We know that families across the country are feeling the impact of the cost of living – it’s the number one issue impacting working people. It’s why we’re taking action to reduce everyday costs, whether it’s freezing rail fares and prescription charges or increasing wages and lowering energy bills. We are taking practical steps to help ease the pressure.”

So if you’re feeling the financial strain, listed is a rundown of all the cost-of-living support the Government is rolling out to eligible households in 2026.

£150 off household energy bills

From April 2026, the Government is taking an average of £150 of costs off energy bills for all households. This comes on top of the Warm Home Discount Scheme – a one-off £150 discount off your electricity bill – making a total package of £300.

State Pension increase

From April 2026, State Pension rates will increase by 4.8% in line with average wage growth as part of the triple lock commitment.

It means the full basic State Pension will rise from £176.45 to £184.90 per week, giving pensioners a weekly payment increase of £8.45. Over a full year this would amount to a total of £9,614.80 in pension payments (up from £9.175.40), giving those getting the full rate an extra £439.40 annually.

The full new State Pension will rise from £230.25 per week to £241.30 in 2026. Over a full year this amounts to a total of £12,547.60 in pension payments (up from (£11,973), giving pensioners on the full rate an extra £574.60 annually.

Pay boost for workers

A total of 2.7 million workers will get a 4% pay rise from April when both the National Living Wage and National Minimum Wage rates increase.

The pay boost will see the National Living Wage rise from £12.21 to £12.71 per hour for eligible workers aged 21 and over from April 2026, which the government said will increase gross annual earnings for a full-time worker on the rate by £900.

The National Minimum Wage rate for 18 to 20 year-olds will rise by 8.5% from £10 to £10.85 per hour, narrowing the gap with the National Living Wage, and 16 to 17 year-olds and those on apprenticeships will see rates go up by 6% from £7.55 to £8 per hour.

The increase means that full-time workers on the National Living Wage will see a rise of £900 a year, while full-time workers on the 18-20 National Minimum Wage rate will see a £1,500 rise.

Universal Credit two-child limit removed

From April 2026, the two-child limit on Universal Credit will be removed, allowing families to receive Universal Credit support for all their children, regardless of family size.

Frozen rail fares

The government has capped rail fare increases across England and parts of Wales for 2026. The freeze will apply to all regulated fares, including seasons, peak returns for commuters and off-peak returns between major cities.

Commuters on some of the busiest routes will not see an increase in fares, meaning a typical commuter travelling to work three days a week using flexi-season tickets will save £315 per year, travelling from Milton Keynes to London, for example.

Prescription charges staying under £10

For 2026, the cost of prescriptions in England will stay under £10 while prepayment Certificates and existing exemptions remain unchanged.

Up to 30 hours of government-funded childcare

Eligible working parents in England can get up to 30 hours a week of government-funded childcare for 38 weeks of the year, for children aged nine months up to school age, helping families save up to £7,500 per year on childcare costs.

Free breakfast clubs for primary school children

Free breakfast clubs are rolling out to every primary school in England. The government said these clubs not only help children thrive academically and socially, but also give parents and carers more choices in childcare, and support working families with the cost of living – putting up to £450 a year back in parents’ pockets.