April 2026 brings a new financial year and significant changes for UK households, as the cost of living crisis persists amid global economic disruption. The US-Iran war has severely disrupted oil trade, driving up energy and food prices, with uncertainty continuing into April and beyond.
Inflation held steady at 3 per cent in February, but prices remain high for many. Research by the Cost of Living Action group found that 63 per cent of Brits have cut back on essentials, while the Resolution Foundation reports that 55 per cent of households in poverty now contain at least one working person.
Benefit payments will be affected by the Easter bank holidays. Anyone due a payment on Good Friday (3 April) or Easter Monday (6 April) should have received it on Thursday 2 April instead. The Department for Work and Pensions (DWP) has mostly completed the migration of legacy benefits to universal credit, but employment and support allowance and housing benefit will remain open until the end of summer for vulnerable claimants.
Universal credit claimants received a 6.2 per cent above-inflation increase to the standard allowance in April. For a single person over 25, this is a £6 per week rise to £98; for couples over 25, a £9 rise to £154. Most other benefits, including PIP and attendance allowance, increased by 3.8 per cent in line with September's inflation rate. However, the health-related element of universal credit for new claimants was cut from £105 to £50 per week, with existing claimants' rates frozen until 2029.
The state pension rose by 4.8 per cent to £241.05 per week, in line with earnings growth. From April, councils can administer Labour's new Crisis and Resilience Fund, which replaces the household support fund and discretionary housing payments, offering crisis payments to low-income households facing financial hardship.
