Two‑child cap ends; April wage and pension rises in North
“These families have no price cap, face sudden price spikes, and must pay steep upfront costs that many simply cannot afford,” said National Energy Action’s Matt Copeland, as households from Cumbria to Northumberland counted the cost of heating oil this spring. In Cumbria alone, more than 40,000 homes rely on oil - a reminder that national policy decisions land with particular force in rural northern communities. (nea.org.uk)
From 5 April 2026, Downing Street confirmed a package now taking effect across the UK: the two‑child benefit cap has been scrapped, pensions and most benefits are uprated, and the first elements of the Employment Rights Act begin, alongside support to cushion energy and fuel costs. “No matter the global uncertainty, my government will always be on the side of the British people,” the Prime Minister said. (gov.uk)
The two‑child limit - introduced in 2017 - has been removed in law after receiving Royal Assent on 18 March 2026. Ministers say ending the restriction on Universal Credit and Child Tax Credit will cut poverty, with around 450,000 children lifted immediately and families now able to claim for third and subsequent children. (gov.uk)
Wages rose last week. From 1 April 2026, the National Living Wage increased to £12.71 an hour for workers aged 21 and over, a change the Treasury says will benefit around 2.7 million people. For hospitality, retail and care across the North, the uplift will be felt in pay packets - and in tight margins for smaller employers. (gov.uk)
From 6 April 2026, day‑one rights to paternity leave and unpaid parental leave apply, and Statutory Sick Pay moves to day one with the lower earnings limit scrapped - billed by ministers as the biggest upgrade to workers’ rights in a generation. Employers are being told to update payroll and HR policies now. (gov.uk)
Pensioners across the North will see the State Pension rise by 4.8% this week under the triple lock, taking the full new rate to £241.30 a week. Most working‑age benefits rise by 3.8%, while the standard Universal Credit allowance gets a permanent above‑inflation 6.2% boost set out in the Universal Credit Act 2025. (hansard.parliament.uk)
Energy bills for a typical household on a standard tariff fall by about £117 a year between 1 April and 30 June after Ofgem’s latest price cap decision, taking an average dual‑fuel direct debit bill to £1,641. But the cap does not cover heating oil, which has surged since mid‑March. (ofgem.gov.uk)
To bridge that gap, the government has set aside £53 million for households most exposed to heating oil costs, with £17 million earmarked for Northern Ireland and smaller pots flowing to Scotland and Wales. Charities have welcomed the recognition but warned the sums may not stretch far enough for off‑grid families. (gov.uk)
Drivers will feel near‑term relief too. Fuel duty’s 5p cut is extended until 31 August 2026, with rates stepping back up in stages from September, December and next March. The Office for Budget Responsibility expects receipts to stay broadly flat until the reversals begin - evidence that ministers are trading revenue for breathing room at the pump this summer. (gov.uk)
No.10 has also convened energy, insurance and shipping bosses as part of a five‑point plan responding to tensions in the Middle East and disruption around the Strait of Hormuz, with ministers pushing allies for de‑escalation and safe passage to steady prices. It’s a rare moment where foreign policy and food‑and‑fuel inflation collide for northern households. (gov.uk)
For families, the end of the two‑child limit is a structural shift. Analysis from the Institute for Fiscal Studies suggests ending the policy reduces absolute child poverty immediately, though some households remain constrained by the separate overall benefit cap - meaning they see little or no gain. (ifs.org.uk)
The story doesn’t end this week. Ofgem resets the cap again for July to September, and analysts warn summer bills could rise if global prices stay high; NEA says support may need to evolve quickly if the crisis widens. For northern employers and households, the immediate task is to check payslips, pension letters and benefit notices - and plan accordingly. (ofgem.gov.uk)