A raft of new measures – coming into force today (1st April 2026) – will see wages go up, bills come down, and more support for those who need it most
A raft of new measures – coming into force today (1 April 2026) – will see wages go up, bills come down, and more support for those who need it most.
In an uncertain and volatile world, the Prime Minister is continuing to work with allies to push for de-escalation in the Middle East – which is the surest and quickest way to bring down pressures on prices.
On Monday, he hosted a roundtable with energy, insurance, and shipping companies and on Tuesday he chaired a COBR(M) meeting to assess the situation with Cabinet colleagues.
Measures coming into force today include:
– Increasing the National Living wage to £12.71 – a £900 boost for 2.4 million workers
– Increasing the National Minimum Wage to £10.85 – a £1,500 boost for over 200,000 young workers
– Cutting energy bills by an average £117 a year for millions across the UK – locked in until end of June
– The Crisis & Resilience Fund starts running – enabled by £1bn of funding – which helps vulnerable households with things like heating oil
– A freeze on prescription prices – so people aren’t spending more than a tenner on their medicines
This follows an update to the public on 16th March where the Prime Minister set out five steps that were already in place on the cost of living. These were:
1) Cutting the energy price cap until the end of June – thanks to last year’s Budget
2) The Chancellor’s decision to extend the cut in fuel duty until this September
3) £53 million for households that are most exposed to heating oil rises
4) Building Britain’s energy security and independence
5) Ongoing work towards a swift resolution of the situation in the Middle East
The cut to the energy price cap comes on top of the £150 Warm Home Discount that around 6 million families will have received this winter, following its expansion last year – and eligible billpayers will continue to receive this support every winter for the rest of the decade.
Prime Minister Keir Starmer said: “In an uncertain and volatile world, it is my government’s duty to protect the British people at home and abroad.
“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.
“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.”
Families in towns across Scotland are paying up to £2,437 more per year on their grocery shopping simply because they lack access to a discount supermarket, new analysis from Aldi reveals.
The findings form part of Aldi’s national review of towns facing the steepest postcode penalty, with shoppers in places such as Cathcart in Glasgow missing out on the savings enjoyed by those with access to Aldi.
The analysis shows that households without access to Aldi – which has been named the UK’s Cheapest Supermarket by consumer champion Which? for the past five years – pay £826 more on average, rising to £2,437 in areas dominated by the highest-priced supermarkets.
These figures are based on the average monthly cost difference between Aldi and either the average major UK supermarkets, or the most expensive UK supermarket, using the prices of a typical 68-item shopping basket tracked by Which?*.
Across the UK, Aldi has mapped 220 locations where shoppers are disproportionately affected by this postcode penalty.
In Scotland, this includes towns such as Cathcart, Bonnyrigg, Clarkston, Barnton (? – Ed.) and Largs where residents are paying more for identical groceries because no discount supermarket is available locally.
Jonathan Neale, Managing Director of National Real Estate at Aldi UK, said: “No one should pay more for their weekly shop simply because of where they live. We believe every household should have access to high-quality, affordable food.
“With household budgets under intense pressure, local access to a discounter isn’t just convenient – it can save families hundreds of pounds a year. These findings show that expanding access to Aldi is one of the simplest ways to reduce the cost of living for many.”
Aldi has invested £650 million across Britain through its store opening and refurbishment programme in 2025, with each new site creating around 40 jobs.
The discounter also recently announced it would be doubling down on its investment in Britain with a £1.6 billion commitment over the next two years, opening 40 stores each year as it moves towards its ambition to have 1,500 UK stores.
Our Community Pantries offer a unique, low cost way to access a variety of foods, including Chilled and fresh produce, and ambient cupboard staples.
We’re working so that no one suffers from food insecurity – it’s part of our work tackling the causes and consequences of homelessness.
Find our pantries at St Brides Centre, Goodtrees Community Centre, The Neighbourhood Centre, The Ripple, Hibernian Community Foundation, Valley Park Community Centre and Southside Community Centre.
As we step into 2026, we’re reflecting on a year that showed both the scale of hardship in the UK and the power of people coming together to change it.
Last year our network of food banks supported millions facing crisis, while continuing to push for the changes needed to tackle the root causes of poverty and hunger.
None of this happened by chance. It happened because of the commitment, compassion and determination of our food banks, volunteers, partners and supporters across the country.
Now, we’re looking ahead. Because emergency food should never be the answer, and together, we can make even more change in 2026.
Stores across the country have been overwhelmed by the generosity of customers who donated at the Tesco Winter Food Collection.
An incredible 1.48 million meals’ worth of long-life food items were donated to the collection between 24 November and 29 November across the retailer’s large and Express stores, including 41,804 in and around Edinburgh.
More than 2,000 volunteers helped store colleagues throughout the collection where every item donated provides much-needed support for food redistribution charities FareShare and Trussell in the run up to Christmas.
In addition, more than £300,000 was donated to both charities thanks to customers rounding up their bill at the till to the nearest pound and online donations throughout the collection period. When combined with Tesco’s financial support of the charities, it equates to more than £2m in funding in 2025.
Trussell research shows over 14 million people in the UK are now facing hunger, including 3.8 million children. They predict that their community of foodbanks will need to give out an emergency food parcel every ten seconds this winter to meet the need.
FareShare continues to see high levels of need and say that more than a third of its partners now primarily serve families with children, or services for children. Research carried out by the charity’s network partner, The Felix Project, recently found that almost a quarter of UK working parents have had to turn to a food support service in the last year.
Donations to Trussell help food banks to provide emergency food parcels to people who cannot afford the essentials, while donations to FareShare support thousands of frontline local charities in communities across the country.
This winter will see heightened levels of demand for both charities’ services with the Christmas holidays being a particularly difficult time for families due to the increased costs that occur at this time of year.
Tesco UK CEO Ashwin Prasad said: “As ever, we have been overwhelmed by the generosity of Tesco customers who have shown how much they value the hard work of our partners Trussell and FareShare in their local communities.
“I just want to say a huge thank you to everyone who donated and made this such a special event in stores across the UK. Every single item donated really helps to make a huge impact in communities across the UK supported by Trussell and FareShare.”
FareShare Chief Executive, Kris Gibbon-Walsh, said: “Once again, the generosity of Tesco customers at the Winter Food Collection has been humbling. The long-life items collected will go to 8,000 charities across the UK, helping to support people during the winter months.
At a time when many people are forced to choose between keeping warm and eating, demand for these local charities’ services is higher than ever. The food that we can provide thanks to the Winter Food Collection makes a real difference, helping to bring people together, strengthen communities and support those in need.
“Thank you to every single person that donated an item of food, topped up their shopping bill or generously gave their time to volunteer in store. Your support will help provide a meal for someone facing hardship this winter, enable them to connect with other vital services, and make a positive difference. Thank you.”
Matthew van Duyvenbode, co-chief executive of Trussell, said: “We are so grateful to Tesco for supporting our community of food banks through the coldest season by organising the annual Winter Food Collection.
“Crucially, it’s thanks to you – Tesco customers – who donate food and money so generously. By doing this, you’re ensuring food banks can continue to help people in your local community who are facing hunger and hardship. Thank you for your kindness. When we all play our part, we can end hunger for good.”
With both charities requiring ongoing support, Tesco shoppers can continue to donate food at permanent collection points at every Tesco store in the UK or make a donation after their online shop until the end of February.
CHILD POVERTY ACTION GROUP’S ANNUAL COST of a CHILD REPORT
CPAG’s annual Cost of a Child report looks at how much it costs families to provide a minimum socially acceptable standard of living for their children.
It is calculated using the Minimum Income Standard (MIS) research, carried out by the Centre for Research in Social Policy at Loughborough University for the Joseph Rowntree Foundation.
The cost of raising a child to age 18 is £250,000 for a couple and £290,000 for a lone parent.
An inadequate social security system means many families, including some working full time, do not have enough income to cover the cost of a minimum standard of living.
A lone parent with two children working full-time on the minimum wage can only cover 79 per cent of these costs, while a similar couple can only cover 90 per cent. The same families across the rest of the UK can cover 69 percent, and 82 percent, respectively.
An out-of-work lone parent with two children only has enough income to cover 55 per cent of costs (46 per cent for a couple). The same families across the rest of the UK can cover 44 percent, and 37 percent, respectively.
Scotland specific policies (most notably the Scottish child payment) help families but still many families are struggling to meet their minimum costs.
That’s us winding down for the year now – most of our groups have started their holiday, and soon the staff and the centre will too – next Friday!
However, our Community Larder is open as usual next week – so do come along to pick up some food. We know this time of year can be difficult, so we are well-stocked, thanks to Tummies Not Trash.
If you are able and would like to, get along to their Christmas Eve event – we are closed from Friday 19th, so it’s a good opportunity to access some surplus food.
Research shows UK’s growing trend towards batch cooking with a third of us embracing the ‘Meal Prep’ revolution
TV personality and chef Matt Tebbutt has joined forces with ScottishPower to help families enjoy hearty, home-cooked meals this winter while saving money on their energy bills as more and more of us embrace weekend ‘meal prep’.
The partnership with the celebrity chef comes as new research commissioned by ScottishPower reveals that more than a third of us (39%) now prefer to batch cook at weekends rather than to traditionally prepare meals from scratch every evening.
This ‘Weekend Kitchen’ research commissioned by ScottishPower through Censuswide comes as more than 500,000 ScottishPower customers sign up for Half Price Weekends to pay less for their weekend electricity.
To help households make the most of the savings, Tebbutt has created a series of winter warmers and family favourites – including a rich Vegetable Tagine, spicy Chipotle Chicken Tacos, and Turkey Wontons – all designed for batch cooking during the cheaper weekend energy window.
“As someone who’s often juggling a busy schedule, I know how valuable it is to meal prep,” said Matt Tebbutt.“These recipes for ScottishPower’s Half-Price Weekends are perfect for batch cooking, meaning families can enjoy delicious, comforting meals through the week while making the most of the discounted weekend hours.”
But it’s not just cooking habits that are changing. The same research found that weekend chores split opinion across the UK:
Two-thirds (66%) of Brits surveyed said that they would prefer to complete their weekend to-do list for half the price than drag chores into the next week and pay full price.
One in three (35%) Brits would rather spend an hour ironing rather than having lunch with their in‑laws.
Over half (55%) even said they’d prefer tackling the laundry to dealing with surprise guests.
Andrew Ward, Chief Executive of ScottishPower’s Customer Business, added: “Our new research shows just how much people value getting household jobs done at the weekend. That’s why Half‑Price Weekends, part of our Power Saver initiative, make it easier and cheaper for customers to cook and clean – at half the usual electricity cost.
“With these delicious recipes from Matt Tebbutt, we’re going one step further to provide batch cooking and meal prep inspiration for the week ahead. Taking the pressure off during the week, at the weekend our customers are rewarded with time and savings on their electricity while helping us balance demands on the grid.”
Best known for hosting several TV cookery shows, Matt’s approachable style and love of hearty, seasonal dishes make him the perfect partner for ScottishPower’s ‘Weekend Kitchen’ winter energy-saving push, featuring a range of recipes and top tips to help households maximise their time and money.
By signing up to ScottishPower’s Half-Price Weekends, households can tackle weekend tasks while paying just half the standard electricity unit rate every Saturday and Sunday, between 11am and 4pm.
By encouraging households to shift more of their energy use to off-peak hours, the Half-Price Weekends initiative helps balance demand on ScottishPower’s electricity grid and reduce household bills. More than 500,000 ScottishPower customers have already signed up to pay less for their weekend electricity with over £10 million collectively saved.
Lorna Slater, the Scottish Green MSP for Lothian has called for the upcoming Scottish budget to extend free bus travel to everyone under 30, describing it as a lifeline for young workers and families in the area.
This would build on the groundbreaking free bus pass scheme already delivered by the Scottish Greens for those under 22. Over 250 million free journeys have been taken by young people since the scheme’s launch, with over 45 million of those in Edinburgh.
Free bus travel for young people has been one of the greatest successes of devolution, saving them and their families a fortune and helping to tackle the climate crisis.
Extending it to everyone under 30 would give over half a million more people a free bus pass, opening up new opportunities to find work or education and to see more of Scotland.
Lorna Slater the Scottish Green MSP for the Lothian region said: “The Greens’ introduction of free bus travel for everyone under 22 has been a huge success for people across our capital city.
“Thousands of young people across our communities are saving money, finding new opportunities, and helping to tackle the climate crisis.
“This scheme is one of the clearest achievements of the Scottish Parliament. Families all over Edinburghhave saved thousands of pounds in a period when bills and other costs have otherwise soared.
“But the cost of living crisis doesn’t stop for people the day they turn 22. For many young people the impact of losing their bus pass is huge, with new travel costs eating into their budgets.
“Too many workers in their 20s are trapped in a cycle of ever-rising costs and insecure work, with far too many in the citystruggling to cover their rent and bills every month.
“Lowering the cost of public transport is a win-win for people and planet. That’s why the Scottish Greens are pushing for more people to get a free bus pass as soon as possible.”
Scottish families will benefit from a Budget to cut the cost-of-living, create more high skilled jobs and invest in public services, as the Chancellor reaffirmed her commitment to drive economic growth.
Chancellor announces fair deal for working families with removal of two-child benefit cap, energy bill saving and fuel duty freeze
Scottish industry backed by investments in Grangemouth, Greenock, Leith and Fife
Public services backed with extra £820 million for Scottish Government
Rachel Reeves recognised Scotland’s huge £204 billion annual contribution to the UK economy with investments in Grangemouth, Greenock, Leith and Kirkcaldy, and provided long-term certainty to the oil and gas industry to support North Sea jobs and investment.
Despite wages growing more in the first year of this government than at any point in the 2010s, the Chancellor was clear too many families are still struggling with the cost of living which is why the Budget included a range of measures to cut bills and boost pay packets.
Saying that the fairest way to help people with the cost-of-living was to cut inflation and increase wages, Reeves announced £150 off energy bills, a fuel duty freeze, and national minimum and living wage rises.
The Chancellor announced the removal of the two-child limit. 95,000 children in Scotland will benefit from this change. Funded by tackling welfare fraud and long-overdue reforms to the Motability scheme, it will result in the biggest reduction in child poverty at any Budget this century.
The Chancellor’s Budget also ensured that Scottish public services are fairly-funded, with an extra £820 million for public services in Scotland through the Barnett Formula, on top of a record settlement in June.
Secretary of State for Scotland, Douglas Alexander MP said: “This is a Budget which delivers for Scotland – raising children out of poverty and helping tackle the cost of living for working families with action on energy bills.
“Scrapping the two-child benefit cap will lift thousands of Scottish children out of poverty. Funded by raising online gambling taxes and tackling welfare fraud, it will result in the biggest reduction in child poverty at any Budget this century.
"This is a budget that we were determined to deliver and to make sure address the priorities and the needs of the people of Scotland."
“The UK Government has backed Scotland’s public services with an extra £820 million — on top of the extra annual £9.1 billion already committed at the Spending Review.
“The £14.5 million announced for Grangemouth is also vital investment in Scotland.”
Ms Reeves also announced reforms to modernise the tax system, asking those with broader shoulders to contribute more through long-overdue fair reforms.
Backing Scottish industry
£14.5 million will back Grangemouth’s transition to a hub for low carbon technologies as the UK Government cements Scotland’s place as the home of the UK’s clean energy revolution.
A further £20 million for Inchgreen near Greenock will upgrade the port’s dry dock, creating up to 1,750 jobs.
Up to £20 million will transform Kirkcaldy town centre and waterfront, including the creation of ‘Adam Smith Growth Works’, boosting local business and tourism.
£25 million will be released following the full sign-off of Forth Green Freeport – spanning Leith, Grangemouth and Fife.
To support oil and gas workers, the UK Government is introducing ‘Transitional Energy Certificates’ to manage existing North Sea fields for the entirety of their lifespan, and a new Jobs Brokerage Service – offering end-to-end career transition support.
Tackling child poverty, the cost-of-living and economic inactivity
95,000 children in Scotland will benefit from the removal of the two-child limit.
Raising the National Living Wage by 4.1% and the National Minimum Wage by 8.5% —building on April 2025 increases to the National Living Wage and National Minimum Wage that already directly benefitted 220,000 workers in Scotland.
Uprating Universal Credit Standard Allowance by 6.1%, the first ever permanent real terms increase.
Increasing the State Pension by 4.8% from April 2026, directly raising incomes for 1.1 million pensioners in Scotland.
Extending the fuel duty freeze and 5p cut, saving the average car driver £49 next year.
Unleashing talent and opportunity with a Youth Guarantee package. This will include ensuring every eligible 18-to-21-year-old who has been on Universal Credit and looking for work for 18 months in Great Britain will get a six-month paid work placement.
Public services investment
The Budget provides an extra £820 million for the Scottish Government to spend on its priorities such as education and tackling NHS waiting times— on top of the extra £9.1 billion already committed during the Spending Review.
The Scottish Government continues to receive over 20% more funding per person than equivalent UK Government spending across the rest of the UK reflecting the real costs of delivering services across Scotland’s diverse geography, from the Highlands to the central belt.
Holyrood: ‘Chaotic’ UK Budget fails to deliver for Scotland
Finance Secretary responds to Chancellor’s statement
The UK Budget “fails to deliver” for Scotland and will not move the dial on the cost of living for squeezed households, according to Holyrood’s Finance Secretary Shona Robison.
Responding to the Chancellor of the Exchequer’s statement, Ms Robison said: “This Budget has been absolute chaos from start to finish. Westminster has been consumed with leaks, briefings and out and out incompetence – with Scotland left as an afterthought and families left to pay the price.
“We needed a step change from the UK Government with investment in public services, support for jobs and industry in Scotland and serious action on energy bills. Instead, we got a chaotic mess and the increase in funding for the Scottish Government will not even cover half the cost of the employer’s national insurance contributions brought in this year.
“With UK energy bills £340 higher than the Prime Minister promised even after today’s announcement, the UK Government are not even trying to deliver on the their promises. It is insulting to see the UK Government stand up and trumpet a proposed reduction that does not even cover the increase since they came to office.
“It does not come close to meeting the Prime Minister’s pledge on energy bills – they have not even attempted to keep their promises.
“The electric vehicle tax is the wrong decision for motorists, the climate and for Scotland given its disproportionate impact on rural drivers.
“And there is no serious support for jobs and industry in Scotland. The Energy Profits Levy is to remain in place – risking thousands of jobs in Scotland and in the North East in particular. Yet again, Scotland is an afterthought.
“And while the moves on the two child cap are welcome, they are long overdue and the UK Government has been forced into this position by the Scottish Government and other campaigners. And without a simultaneous change to the benefit cap it falls well short of the bold anti-poverty measures we have been calling for from the UK Government.
“But the complete chaos around this Budget gets to the heart of the fact that we should not be leaving crucial decisions around the economy, public finances and household bills in the hands of a deeply incompetent Westminster UK government. We should take these decisions for ourselves with the fresh start of independence.”
The impact of the increase Employers National Insurance contributions on public services is forecast to cost the Scottish Government at least £2 billion over the next five years.
Responding to the UK Government’s Budget, Poverty Alliance Chief Executive Peter Kelly said: “The Chancellor’s decision to fully scrap the unjust two-child limit is the right thing to do.
“For eight years, this cruel policy has severed the link between what families across the country need and the support they are entitled to, pushing children into poverty and limiting their potential. Our children deserve better.
“Campaigners across Scotland have been unified in their demand to scrap the two-child limit and we are pleased that the UK Government has listened, sending a strong message that every child in this country matters. The end of this policy must be the starting point of reform which ensures that our social security system truly provides security.
“This decision also frees up money earmarked for the mitigation of the policy in the Scottish Budget. Coupled with the additional £820 million allocated to the Scottish Government in this UK Budget, this will allow further investment in the action we know is needed to meet our child poverty targets, including increases to the Scottish Child Payment.”
Commenting on the UK Government’s Budget response, Debbie Horne, Scotland Policy and Public Affairs Manager for Independent Age said: “The Autumn Budget was an opportunity to address pensioner poverty across the UK. However, the UK Government has sadly missed the chance to take action on an issue that now affects almost two million older people across the UK, including 160,000 pensioners in Scotland.
“While we welcome the retention of the Triple Lock, this measure alone does not go far enough for older people on the lowest incomes who are living across Scotland in cold homes and with not enough money to live on.
“We continue to call on the UK Government to increase the Warm Home Discount to ease the burden of escalating bills, to support older private renters by uprating Local Housing Allowance so no one has to make dangerous sacrifices to pay their rent, and to boost income through a comprehensive take-up strategy for entitlements, including Pension Credit.
“The absence of meaningful action to address later-life poverty will leave many older people on a low income in Scotland feeling forgottenand many will be worried about losing more of it in tax, because of the extension of the freeze on personal tax allowances to 2031, a year longer than was expected.
“We estimate that without decisive government intervention almost 190,000 pensioners in Scotland could be in poverty by 2040. Worryingly, nothing in this Budget suggests we are being steered away from this frightening outcome.”
Mary Glasgow, Chief Executive of Children First, Scotland’s national children’s charity said: “We welcome the UK Government’s decision to scrap the two-child limit as outlined in the Office for Budget Responsibility report. This is long overdue and frees up Scottish Government budget for other crucial support for children and families.
“Poverty has a devastating impact on children’s mental and physical health, development, happiness and ability to learn that can last a lifetime.
“Both governments must now work together to build on progress and meet the legal target to reduce child poverty in Scotland. Families need a stronger social security offer, for example, through the Scottish Child Payment and whole family support across Scotland to give every family the financial, practical and emotional help they need to tackle the root causes of poverty.
“Children can’t wait. The Scottish Government must use this opportunity to go further and faster in their stated mission to eradicate child poverty.”
Children First’s manifesto for the 2026 Holyrood elections calls on the next Scottish Government to deliver a comprehensive offer of whole family support to tackle child poverty and give every family the emotional, practical and financial support they need.
Helen Barnard, director of policy at Trussell, said: “Trussell is delighted to see the Chancellor take this bold step which will protect hundreds of thousands of children from growing up facing hunger and hardship. She has listened to the families and food banks across the UK who have been imploring her to act.
“The cruel two-child limit has driven countless families into hardship, forced to turn to food banks to survive. Today’s announcement of its full and swift removal will help ensure all our children have the best possible start in life, ease pressure on public services, and help to boost our economy.
“This government came to power promising to end the need for emergency food and reduce child poverty. Removing the two-child limit will make a vital and significant contribution towards delivering on those manifesto commitments.
“This move will pull 470,000 children out of severe hunger and hardship by 2027 and ease pressure on food banks throughout the UK.
“The government has built on positive steps in strengthening support for people facing severe hunger and hardship. But this cannot be the end. Food bank need remains well above levels five years ago and many people are still struggling to afford the essentials.
“We need more bold choices to transform lives across our communities.”
