From 6 April 2026: two‑child limit ends, SSP and UC rise

Let’s pin the dates first so you can plan with confidence. Several cost‑of‑living changes landed this week: the National Living Wage and Ofgem’s energy price cap changed on Wednesday 1 April 2026; most benefits and workers’ rights changes start from Monday 6 April 2026, the first day of the new tax year. Downing Street set out the package on 5 April - below we translate it into plain English, with timelines and definitions. (gov.uk)

What’s changing for families: the two‑child limit in Universal Credit and Child Tax Credit - a rule brought in during 2017 that removed support for a third or later child - has been abolished. The Department for Work and Pensions says ending it will lift around 450,000 children out of poverty. The law takes effect from Monday 6 April 2026 and existing Universal Credit claims will update automatically; you do not need to reapply. (gov.uk)

Quick definition you can teach in one sentence: the ‘two‑child limit’ (often called the ‘two‑child cap’) restricted benefit support to the first two children in a family. Scrapping it means the child element can now be paid for every child in eligible low‑income families from 6 April 2026. That’s why anti‑poverty groups and economists have long argued it’s the single biggest lever to cut child poverty. (gov.uk)

Your Universal Credit standard allowance rises by more than inflation this year. Ministers have hard‑wired a CPI uprating plus an extra 2.3 percentage points into law for 2026/27 - roughly a 6.1–6.2% boost to the core allowance. In practice, that takes a single adult (25+) from £400.14 to about £424.90 a month, and couples (both 25+) from £628.10 to about £666.97. The change applies from assessment periods beginning on or after 6 April 2026, so look for it in the first statement that covers dates after Monday. (legislation.gov.uk)

Workers’ rights get a step‑change. From 6 April, paternity leave and ordinary (unpaid) parental leave become ‘day one’ rights - you no longer need months of service before you can take them. Statutory Sick Pay (SSP) will also be payable from day one of illness and the lower earnings limit is removed, bringing many casual and part‑time workers into eligibility for the first time. Note: statutory paternity pay still has its own qualifying rules, even though leave is now a day‑one right. (acas.org.uk)

Pensioners see a 4.8% rise under the triple lock. The full new State Pension increases from £230.25 to £241.30 a week from 6 April 2026 - worth about £575 a year if you receive the full amount. More than 13 million people receive the State Pension, so this touches most older households. (gov.uk)

Most other working‑age and disability benefits - including Personal Independence Payment and Housing Benefit - rise by 3.8% this April, in line with September’s CPI figure, according to the House of Commons Library and DWP orders approved by Parliament. (commonslibrary.parliament.uk)

Pay at the till: the National Living Wage rises to £12.71 an hour for workers aged 21 and over from 1 April 2026, alongside increases to youth and apprentice rates. Employers should have updated April payslips accordingly. (gov.uk)

Energy bills: Ofgem’s price cap for 1 April–30 June 2026 is down 7% (about £117 a year) for a typical dual‑fuel, direct‑debit household. Your saving will vary with usage, but this quarter’s cap gives most homes some breathing space through to the end of June. (ofgem.gov.uk)

Fuel duty is frozen until the end of August 2026. The Office for Budget Responsibility records that the temporary 5p cut continues to 31 August, with phased rises scheduled from September unless ministers change course. That means no duty‑related pump price rise for now while the Middle East situation remains volatile. (obr.uk)

Off‑grid homes: the government has set aside about £53 million to help households most exposed to heating‑oil price spikes, with funding routed via the new Crisis and Resilience Fund and devolved governments. If you heat with oil, check your local council or devolved administration for eligibility. (gov.uk)

Why ministers keep talking about the Strait of Hormuz: shipping through this narrow waterway has been heavily disrupted by the Iran war, pushing up global energy and insurance costs. The UK pulled together representatives from more than 40 countries last week to press for the strait’s reopening - part of the context for today’s domestic measures. (apnews.com)

Media‑literacy note you can share with your class: many headlines say “two‑child cap.” The legal term is the ‘two‑child limit’ in Universal Credit and Tax Credits; the separate nationwide ‘benefit cap’ (a ceiling on overall benefits for some households) still exists. Clear wording helps people find accurate guidance and avoid confusion. (gov.uk)

What to check this week: if you claim UC, your statement that covers an assessment period beginning on or after Monday 6 April should reflect the higher standard allowance and the end of the two‑child limit where relevant. If you’re off sick, new SSP rules apply to absences starting on or after 6 April. Pensioners and those on uprated benefits should see the 4.8%/3.8% increases in April payments depending on pay‑cycle. (legislation.gov.uk)

Why this matters in real life: a family on UC with three children will no longer lose out on support for the third child; a shop worker on a variable contract who didn’t earn enough for SSP before now qualifies from day one; a full‑rate new State Pensioner is about £11 a week better off; and most households will see around a £117 annualised cut to energy bills this quarter. That is meaningful at the kitchen table - and useful context for classroom discussions about how policy choices show up in everyday budgets. (gov.uk)