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Across the UK, millions are still struggling as high inflation in recent years has made essentials more expensive than ever before. Household, grocery, mortgage and rent bills have hit record highs as the country navigates an ongoing cost-of-living crisis.
Inflation recorded an unwanted jump to 2.3 percent in October, which is the highest growth in the last two years. Experts had forecast a smaller increase than August’s 1.7 percent, blaming higher energy bills for the rise.
Many had hoped the figure would remain below the Bank of England’s 2 percent target, with living costs well outpacing wage growth in recent years.
in October, Labor presented its first budget in force with Rachel Reeves promising to “support people with the cost of living”. The chancellor confirmed that the national wage will rise by 6.7 percent in the coming year, while benefits will increase by 1.7 percent.
However, the latest stories from low-income households still paint a bleak picture of the UK’s economic situation. According to recent research by the Joseph Rowntree Foundation, another 100,000 children and 300,000 adults will be in poverty by October 2029 if the government does not take further action.
Meanwhile, thousands of vulnerable pensioners will face their first winter in decades without a £200-£300 winter fuel payment. Labor decides to press ahead with its controversial repeal of the measure.
In this challenging economic environment, here is an overview of the financial support available to households this December and key dates for benefits Recipients to watch out for:
Benefits dating as usual
Pension payments and payments will generally proceed as usual in December. these are:
- Universal Credit
- State pension
- Pension loan
- Children’s allowance
- Allowance for living with a disability
- Paying for personal independence
- Attendance allowance
- Caregiver Supplement
- Employment Assistance Allowance
- Income support
- Job search plugin
However, one holiday should be kept in mind: December 25, Christmas. If your usual payment date falls on Christmas, then you can expect it a working day earlier (December 24).
For more information on how and when state benefits are paid, visit the government website.
This year’s Policy in Practice report shows that almost £23bn of benefits go unclaimed a year – they offer a useful calculator to find out what you may be entitled to.
Have you had any problems with the DWP recently? Contact by email: albert.toth@independent.co.uk
Household Support Fund
Labor confirmed in August that it would extend the Conservative Household Support Fund (HSF) for another six months beyond its September 30 end date. This means that it should now continue until the end of March 2025.
HSF funds all local councils to support vulnerable households in their area. Councils are free to allocate funds as they see fit.
For example, some provided cash grants, supermarket vouchers or help with energy bills. Visit your local council’s website to find out what help may be available.
To find out what support is available, the charity End Furniture Poverty offers a useful tool for finding help.
Other help is available
Budgeting of advance loans
The Government is offering a ‘Budget Advance Loan’ for people on Universal Credit who are facing urgent cash shortages. The maximum loan repayment term is two years.
These loans are interest-free and are automatically deducted from your Universal Credit payment. You can borrow an ‘advance’ up to:
- £348 if single
- £464 if you are part of a couple
- £812 if you have children
Following the Labor Budget in October, a new cap was introduced on the amount the DWP can deduct from loan and debt repayment fees, including planning advance loans.
From April 2025, deductions from Universal Credit will be limited to 15 per cent of the standard allowance, down from 25 per cent.
Charitable grants
If you are in financial difficulty, you may be eligible for certain charitable grants. There are a wide range of grants available depending on your circumstances.
However, these grants will usually require you to meet certain criteria and can only offer limited funding.
Charitable grants are available for disabled or ill people, carers, bereaved people, the unemployed, students – and many more. Charity organization Turn2us has an online grant search tool that may be available to you.
Help from the energy supplier
A number of energy suppliers offer help to those struggling with their energy bills. These include Scottish Power, EDF, E.ON and Octopus. It’s worth contacting your energy supplier to find out if you qualify.
British Gas is also offering a grant of up to £2,000 to customers of any energy supplier. You will need to meet certain criteria to be eligible and you can apply on the British Gas Energy Trust website.
Council tax cuts
If you meet certain criteria or are on certain benefits, you may be able to claim up to 100 per cent tax credit.
Your local council may still be able to offer you a discretionary reduction if you are able to prove that you are facing severe hardship and cannot afford to pay your council tax.
To apply for a council tax reduction, you can contact your local council through the government website.
Discount for a warm home
The Warm Home Discount is a one-off £150 discount on your electricity bill. It will be automatically taken from your energy bills if you qualify.
To qualify, the bill payer must be on a low income with high energy costs or receive the Guaranteed Loan element of the Pension Loan.
Up to 30 hours of free childcare
All working parents in the UK are currently entitled to 30 hours of free childcare for children aged 3 to 4. As of April 1, this right has been extended to include 15 hours of free childcare for children aged 2 and over.
From 1 September this was again extended to all nine-month-olds.
You must apply online and re-verify your eligibility every three months, in time for each school term. Working parents can also claim tax-free childcare, getting back 20p for every 80p you put into childcare, up to a maximum of £500 a year.
The final extension to free childcare, coming in September 2025, will see all children under five eligible for 30 hours.
Will benefit rates rise soon?
After the chancellor’s budget announcement, it was confirmed that all benefits will be increased by 1.7 per cent, matching September’s CPI figure.
While this is not unusual, campaigners have called on Labor to consider a slightly larger increase. Inflation has been higher in previous months, starting at 4 percent in January. It is also expected to rise and remain above 2 percent again from October.
The increase will apply to all working age benefits, including Universal Credit, PIP, DLA, Assistance Allowance, Carer’s Allowance, ESA and more.
The increase will take effect from April 7, 2025.
Energy price cap: Will it increase or decrease again in 2024?
Ofgem’s energy price cap rose from £1,568 to £1,717 from October to December – a 10 per cent increase. This will mean higher bills for most households in the colder months.
An energy price cap is the maximum amount that energy suppliers can charge you for each unit of energy if you use a standard variable tariff. This includes most households. It is expressed as an annual bill for an average house.
The price change reflects the price of wholesale energy – the amount energy companies pay for their electricity and gas before delivering it to households.