How to get help with the cost of living in 2026

The cost of living continues to rise in the UK, with 88% of the population saying that high living costs are having an impact on their families. 45% are finding that this impact has got worse over the last year, even though inflation is slowing.

However, the government has stated that addressing the cost of living is a priority.. Chancellor Rachel Reeves has declared cutting the cost of living to be her number one focus. And Prime Minister Keir Starmer supported this by claiming that every minute not talking about the cost of living was “a wasted minute”.

Various new policies are being debated and discussed, and time will tell if they do indeed turn the corner. But in the meantime, what help is available now to those who are struggling?

In this article we take a quick look at potential sources of help with the cost of living in 2026, and how to find out if you might be eligible for them.

Help with the cost of living

Five of the main costs that households struggle with are:

• Housing;
• Transport;
• Energy;
• Food;
• Other essential household costs.

So what financial help might be available with the above costs? Let’s take a quick look.

• Housing

Benefits available to help with the cost of housing vary depending on whether you are a tenant or homeowner:

• Tenant

The Universal Credit housing costs element can help towards the cost of your rent and some service charges. It replaces the previous Housing Benefit. 

For more information on Universal Credit check the GOV UK Universal Credit page here.

• Homeowner

There is a scheme called Support for Mortgage Interest (SMI) that can help towards paying either the interest on your mortgage or the cost of a loan related to your home, for example for essential repairs or home improvements, legal fees or stamp duty. SMI would be paid directly to the lender and is available if you claim Universal Credit, Pension Credit or Employment and Support Allowance. 

For more information on SMI check the GOV UK SMI page here.

Whether you are a tenant or homeowner, you may also be able to get a reduction in Council Tax in some circumstances. For example if you are if you are on a low income, are the only adult in your home, are receiving certain benefits – such as Jobseekers Allowance, Income Support, Pension Credit, Employment and Support Allowance and Universal Credit – or are physically or mentally impaired or living with someone who is. If any of these apply, contact your local Council to apply for a reduced Council Tax.

• Transport

For many households in the UK, transport is a major expense. Whether family members need to go to work, school, college or have other regular commitments, the cost of getting there continues to rise. Train and bus fares increase regularly, sometimes faster than general inflation. And, whilst fuel prices are stable at the moment, they can be impacted at any time by external circumstances, such as we saw in 2022.

If you travel regularly by train, it is worth checking whether either a season ticket or railcard would help you. There are currently 9 different railcards, offering up to ⅓ discount on train tickets. You can find out more from National Rail here. 

If you are on Universal Credit or Jobseeker’s Allowance you may be able to get a Jobcentre Plus Travel Discount Card offering 50% off rail travel. Also if you are job hunting, be aware that there is also a scheme called the Flexible Support Fund. This is offered by local Job centres to offer financial help for travel expenses, training courses and clothing for interviews. 

• Energy

In the autumn budget, Chancellor Rachel Reeves announced that all households in England, Scotland and Wales will see a reduction in their energy bills by an average of £150 a year.

Additionally, if you are on benefits or have a low income there are three other potential sources of financial help for energy bills:

• The Warm Home Discount Scheme

This scheme enables you to get a further £150 off your electricity bill during winter. The discount will be applied to your bill by your energy provider. You are eligible to receive this if you either get the Guarantee Credit element of Pension Credit, or are on a low income. It should happen automatically, but if you think you are eligible and are missing out contact the Warm Home Discount Scheme helpline on 0800 030 9322

Find out more on GOV UK here.

• Energy-saving improvement schemes

If you are on certain benefits, including Universal Credit, or on a low income, you may be able to get financial help with energy-saving improvements for your home.

Specific schemes vary from year to year, but there are usually ongoing schemes available in areas such as home insulation, draught-proofing, heat pumps, high-efficiency boilers, energy-efficient doors and windows. 

To find out more, contact your energy supplier or local council to see what is available and check eligibility. This is worth doing, as installing energy-saving improvements in your home can save a lot of money on energy bills.

• Financial help with energy bills

You may be able to get additional financial support with energy bills. For example, the Cold Weather Payment scheme is a one-off payment available during a period of very cold weather if you’re already receiving certain benefits. 

Another potential source of help is the Household Support Fund run by local councils. This fund exists to provide help with essential costs. Find out more on GOV UK here.

• Food

A major expense for most families is food. At Loans 2 Go we often feature articles on how to save money on everyday essentials, including food shopping and preparation. For example, check out our article How to feed your family for less this spring.

There are also various sources of financial and practical assistance with the cost of food. These include:

• The Household Support Fund, as mentioned earlier. Check out GOV UK here as to what help your local council may be able to provide.
• Food Banks provide food parcels for individuals or families in need. There are many different providers of food bank, including The Trussell Trust, local charities, and religious organisations. You may need a voucher, which is based on a referral from a local agency, such as Citizens Advice, a GP, social worker, housing officer, or a school, and can be provided electronically.
• Community Pantries offer access to a range of food products for a small weekly contribution. They provide groceries – including fresh and frozen food, and general produce – at a lower cost than supermarkets or shops. To find your nearest community pantry check out Your Local Pantry website here.
• Olio is an app that aims to reduce food waste by providing the opportunity to find what you need and share what you don’t with other people. It also enables sharing of other goods too. To use it for food, check out the Food or Food Waste Heroes sections. These may include surplus food items from supermarkets as well as personal donations. You can find out more on the Olio website here.

• Other essential household costs

As well as regular expenditure, many families struggle financially when an unexpected bill arises such as car repairs or having to replace a domestic appliance such as a fridge or washing machine. 

One option to consider here may be an emergency loan. In some circumstances, depending on interest rates and repayment terms, this can work out cheaper than putting the expense on a credit card. Loans 2 Go offer emergency loans of £250 – £2,000 which may be able to help. Full details, including terms and conditions are available on our website. Borrowing is optional and may not be suitable for everyone, so always consider your circumstances and affordability before applying.

How do you know if you qualify for help

The Citizens Advice website recommends several benefits calculators to help you identify if there are any sources of financial help available to you:

For a quick check on what benefits and other financial help you might be eligible for try the

• Turn2us benefits calculator

For a more detailed benefits check use one of the following:

• Policy in Practice benefits calculator
• Entitledto benefits calculator

These benefits calculators will ask for information about your financial situation and living arrangements and will give you a clear picture of any financial support you may be entitled to, and how to go about applying for it.

We hope that the information in this article helps to point you in the right direction of getting the financial help you need.

Also remember to visit us here again soon at Loans 2 Go for more hints and tips on family finances and everyday living. 

This blog/article provides general information only and does not constitute financial advice.