- New measures come
into force today
to support workers, pensioners, and families with
the cost of living
- Two‑child benefit cap scrapped from
today - lifting nearly half a million children out
of poverty
- Comes as the Prime
Minister renews
his commitment to defend Britain's interests
abroad and stand up for people at home
The Prime Minister has vowed to “always be on the side” of the
British people as changes today help
workers, pensioners, and families with the
cost of living.
At a time of international uncertainty, the Government is focused
on what matters most to people at home: easing the cost of living
now, and making sure the country is better prepared for future
shocks.
A raft of changes coming into effect today will lift 450,000
children out of poverty, provide millions of pensioners with
extra help to manage rising costs, and deliver the biggest
upgrade to workers' rights in a generation.
understands that families
are worried about bills, the weekly shop, and what global
instability could mean for their household finances. Today's
measures provide certainty now — while laying the foundations for
a stronger, more secure economy.
As a result of decisions made by this
government, policies coming into effect today include:
- Scrapping the two child benefit cap
which will lift 450,000 children out of poverty
- The biggest upgrade to workers' rights in a generation
through the Employment Rights Act – delivering day one paternity
and parental leave as well as major reforms to Statutory
Sick Pay, ensuring workers can take time off when
sick without worrying about going without pay.
- Increasing the basic and new State Pensions by 4.8%
for more than 12 million people - an
increase worth up to £575 a
year for someone on the new State Pension.
- Uprating benefits such as PIP and Housing Benefit,
and increasing most working-age benefits by 3.8%, helping
millions of low-income families and sick and disabled people.
- This comes alongside action the Government is taking to
incentivise work and tackle ill-health, as well as
boosting the standard rate of Universal Credit by 6.2%
- the first ever permanent,
above-inflation increase – worth around £265 more a year for
a single person, or £465 more a year for a couple.
These measures follow last week's increase in the National Living
Wage and National Minimum Wage for millions of workers, alongside
an average £117 a year cut to energy bills for
households across the country - locked in until the end
of June.
Taken together, this action leaves the UK better placed to
weather current economic challenges, while working with global
partners to secure de‑escalation and the reopening of the Strait
of Hormuz to relieve pressure on
prices globally.
Prime Minister , said:
“No matter the global uncertainty, my
government will always be on the side of
the British people in bearing down on the cost of
living.
“I will never lose sight of how restless people are for change,
and I am proud that today we are lifting nearly
half a million children out of poverty, boosting
support for pensioners, and delivering the biggest
upgrade to workers' rights in a generation.
“I know families across the country are concerned about the
conflict in Iran and what it means for the cost of living.
We are working closely with international partners
to push for a de-escalation in the Middle East and the re-opening
of the Strait of Hormuz. This is the most effective way to ease
the pressure on the cost of living.
“I am clear that our response to the current global situation
will define us for a generation, which is why we are taking the
right long-term decisions now to ensure we emerge
from this as a stronger, more secure nation.”
All these policies take effect alongside the Prime
Minister's five‑point plan to deal with the immediate impact of
the conflict in the Middle East on the cost of living.
This includes cutting energy bills by an average of £117 per
household; extending the cut in fuel duty until September while
closely monitoring prices at the pumps; providing £53 million to
support households most exposed to heating oil price rises;
strengthening Britain's energy security by investing in clean,
home‑grown energy; and continuing to push for de‑escalation in
the Middle East.
During the past week, the Prime Minister has hosted a roundtable
with leaders from the energy, insurance and shipping sectors to
hear directly about the challenges they are facing, chaired a
COBR meeting of Cabinet ministers to coordinate the UK's
response, and asked the Foreign Secretary to bring together more
than 40 countries to drive forward a plan to reopen the Strait of
Hormuz and protect freedom of navigation.
