Sir Keir Starmer said that the Government will back struggling households
April bill rises and price hikes have been a concern for households for weeks, amplified by skyrocketing fuel prices and uncertainty about the conflict in the Middle East. To ease the burden, the Government highlighted five ‘measures’ that are also coming into force in April to help households stay afloat.
Prime Minister Keir Starmer said: “I know the public are concerned about the conflict in Iran and what it means for them and their families. I want to reassure them that they have a government on their side, working with allies on de-escalation and bearing down on the cost of living.”
New measures coming into force on April 1, 2026:
- Increase in the National Living wage
- Increase in the National Minimum wage
- £117 cut on annual energy bills
- Crisis and Resilience Funds starts operations
- Prescription prices frozen
The Prime Minister continued: “Today, millions of people up and down the country will see energy bills go down by £117, wages go up for the lowest paid, and more support will be available for people who need it most – because of the decisions this government has taken.
“But we must go further to bear down on costs, and that means pushing for de-escalation in the Middle East and a re-opening of the Strait of Hormuz. That is the best way we can bring down the cost of living for families and that is my focus.”
The National Living wage has risen by 4.1%, offering a £900 annual boost for 2.4 million workers according to Government figures. The National Minimum wage saw a bigger rise, providing a £1,500 boost for over 200,000 young workers.
The energy cost reduction comes from Rachel Reeves’ plans announced in the Budget last year, although initially billed as a £150 cut for households on average. Ofgem has no dropped the price cap by 7% from April.
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This will save households £117 a year on average compared to the price cap implemented in January. However, the lower rate will only be effective until the end of June with experts sharing concern that costs may increase in the next price cap announcement.
The new Crisis and Resilience Fund will be launched in England from the start of April. It’s meant to “support low-income households who encounter a financial shock and to support activity that builds individual and community financial resilience” according to Government Guidance.
Finally, the cost of NHS prescription items will be frozen for another year. The Chancellor announced the extension of this freeze shortly before her last Budget.
Most prescription items on the NHS will cost £9.90 per item in England. Some items are already free of charge such as contraception and medicines for hospital inpatients.
