Across the UK, millions continue to face financial hardships as inflation has pushed the cost of essential items to record highs. Household bills, groceries, mortgages, and rent have all become significantly more expensive due to the ongoing cost of living crisis.
Benefit and Pension Payment Dates and Financial Changes in 2024
As the UK continues to navigate a challenging economic landscape, millions of households are feeling the effects of high inflation, increased living costs, and financial uncertainty. With essentials like groceries, energy bills, and rent at record highs, the need for support is more critical than ever. This article provides an overview of key financial changes in October 2024, including benefit payment dates, government support schemes, and additional assistance available for low-income families during this difficult period.
Inflation Trends in 2024
In June, inflation reached the Bank of England’s 2% target for the first time in three years. However, it rose to 2.2% in July and remained at that level through August. Although inflation is lower than the October 2022 peak of 11.1%, costs remain high. This reduction in inflation does not imply that prices are decreasing; they are increasing at a slower rate.
Struggles Faced by Low-Income Households
Recent reports from low-income households paint a grim picture of the UK’s current economic situation. In September, research by The Trussell Trust revealed that nearly half of Universal Credit recipients ran out of food in the previous month, and the numbers are worsening. The charity, which operates most of the UK’s food banks, found that 68% of these households struggled to afford essentials in the past six months.
Rising Poverty Rates
Long-term poverty rates have increased for two consecutive years, with nearly one million more people living in poverty in 2022/23 compared to the previous year, according to the Joseph Rowntree Foundation.
Government’s Commitment to Tackling the Cost of Living Crisis
The new Labour government has committed to addressing the root causes of the cost-of-living crisis. Liz Kendall, the Work and Pensions Secretary, announced that the Department for Work and Pensions (DWP) will focus on reducing “economic inactivity” and increasing employment through its ‘Back to Work’ plan.
Budget Announcement Expected
Chancellor Rachel Reeves is set to deliver her first budget at the end of October. Many experts anticipate tax hikes and spending cuts. Prime Minister Sir Keir Starmer has already indicated that this budget will likely involve some painful decisions.
October Benefit Payment Dates
Despite the economic challenges, benefit and pension payments will continue as usual in October since there are no bank holidays this month. The benefits being paid out include:
- Universal Credit
- State pension
- Pension credit
- Child benefit
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Attendance allowance
- Carer’s allowance
- Employment Support Allowance (ESA)
- Income Support
- Jobseeker’s Allowance (JSA)
For more benefits payment details, visit the UK government’s official website. A report from Policy in Practice showed that £23 billion in benefits go unclaimed each year, and they offer a calculator to help determine eligibility.
Extension of the Household Support Fund
In August, the Labour government extended the Household Support Fund (HSF), originally created by the Conservative government, for six more months beyond the September 30 end date. This extension means it will now run until the end of March 2025.
The HSF provides funding to local councils to support vulnerable households. Councils can distribute the funds as they see fit, which may include cash grants, supermarket vouchers, or help with energy bills. To find out what support is available in your area, visit your local council’s website.
Additional Assistance Available
Budgeting Advance Loans
The government offers a budgeting advance loan for those on Universal Credit who face a financial emergency. These loans are interest-free and repayable over two years, with repayments deducted from Universal Credit payments. The loan amounts are as follows:
- £348 for single individuals
- £464 for couples
- £812 for those with children
Charitable Grants
Various charitable grants are available to people struggling financially, depending on their circumstances. While many grants have specific eligibility criteria, they can provide valuable financial relief for individuals who are disabled, ill, carers, bereaved, unemployed, or students. Turn2us offers an online tool to help search for available grants.
Energy Provider Assistance
Several energy providers, including Scottish Power, EDF, E.ON, and Octopus, help customers struggling to pay their energy bills. Additionally, British Gas offers grants of up to £2,000 to help customers of any energy provider, provided they meet specific criteria. Applications for this grant can be made through the British Gas Energy Trust website.
Council Tax Reduction
If you are on certain benefits or meet specific criteria, you may be eligible for a council tax reduction of up to 100%. Local councils also offer discretionary reductions if you can demonstrate severe financial hardship. You can apply through your local council via the government’s website.
Free Childcare Hours
All UK working parents are entitled to 30 hours of free childcare for children aged 3 to 4. This was expanded to include 15 hours for 2-year-olds as of April 2024, and since September 1, the entitlement now covers all children from nine months old. Parents must apply online and reconfirm their eligibility every three months. The final expansion of free childcare, scheduled for September 2025, will provide 30 hours for all children under five.
Energy Price Cap Changes in 2024
Ofgem, the energy regulator, announced that the energy price cap would increase from £1,568 to £1,717, a 10% rise, starting this autumn. This increase will lead to higher bills for many households. The price cap is the maximum amount energy suppliers can charge for each unit of energy, and it reflects the cost of wholesale power.
Labour Government’s Plans for Benefits and Pensions
The Labour government is expected to gradually change benefits and pensions over the coming years. While consultations and reviews are required before implementing most changes, Labour has committed to reforming Universal Credit to ensure it reduces poverty and makes work more financially rewarding.
Planned reforms include:
- A national jobs and career service to help more people find work and progress in their careers.
- Local work, health, and skills plans for economically inactive individuals, led by mayors and local authorities.
- A youth guarantee for people aged 18 to 21, offering work, apprenticeships, or training opportunities.
Labour’s Pension and Winter Fuel Payments Policy
Labour has decided not to adopt the Conservatives’ “triple lock plus” pledge, which would have guaranteed pension increases each year. Instead, the party has promised to review workplace pensions to secure retirement finances. Additionally, Chancellor Rachel Reeves announced plans in July to tighten eligibility for Winter Fuel Payments, which help older people afford heating during colder months.
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