Across the UK, millions continue to struggle as the rampant inflation of the past few years has left essentials costing more than ever before. Household bills, groceries, mortgages and rents have all hit record highs, as the country navigates the ongoing cost of living crisis.
Inflation dropped below the Bank of England’s 2 per cent target in August for the first time in more than three years, reaching an unexpected 1.7 per cent.
While lower inflation is welcome economic news, it unfortunately does not mean costs are going back to what they were previously, just that they have begun rising less fast. Fears have also been raised that this lower level of inflation will be used to uprate benefits next April, rather than the higher rates of previous months.
The latest stories from low-income households paint a bleak picture of the UK’s economic situation. In September, research from The Trussell Trust showed that nearly half of all people receiving Universal Credit ran out of food in the previous month – with the numbers only getting worse.
The charity, which runs most of the UK’s foodbanks, says that 68 per cent of these households also struggled to afford the essentials over the past six months. In the longer-term absolute poverty has now increased for two years in a row, with nearly a million more people in poverty in 2022/23 than in 2021/2022 according to the Joseph Rowntree Foundation.
The new Labour government has pledged to tackle the cost of living crisis by dealing with its underlying causes. Work and pensions secretary Liz Kendall has said the DWP will focus on tackling “economic inactivity,” aiming to boost employment with their new ‘Back to Work’ plan.
At the end of October, Chancellor Rachel Reeves will be unveiling her first budget with many experts expecting tax rises and spending cuts to be announced. Speaking in August, Sir Keir Starmer said his government’s first fiscal event was likely to be “painful.”
Against the challenging economic backdrop, here is an overview of the financial support available to low-income families this November and key dates for benefits recipients to look out for:
Benefits going out as usual
The usual benefits and pension payments will be going out as normal in November as there are no bank holidays in the month. These are:
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Universal Credit
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State pension
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Pension credit
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Child benefit
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Disability living allowance
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Personal independence payment
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Attendance allowance
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Carer’s allowance
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Employment support allowance
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Income support
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Jobseeker’s allowance
For more information on how and when state benefits are paid, visit the government’s website.
A report from Policy in Practice this year shows that nearly £23bn in benefits goes unclaimed a year – they offer a helpful calculator to work out what you might be entitled to.
Have you been having issues with the DWP recently? Get in touch via email: albert.toth@independent.co.uk
Household support fund
In August, Labour confirmed that they will extend the Conservative-created Household Support Fund (HSF) for another six months beyond the September 30 end date. This means it should now continue until the end of March 2025.
The HSF is funding given to all local councils to support vulnerable households in their area. Councils are free to allocate the funds however they feel is best.
For instance, some have provided cash grants, supermarket vouchers, or energy bill assistance. Visit your local council’s website to find out what help may be available.
To find out what support is available, the End Furniture Poverty charity offers a helpful assistance finder tool.
Other help available
Budgeting advance loans
The government offers a ‘budgeting advance loan’ for people on Universal Credit who face an emergency lack of money. The loan has a maximum repayment period of two years.
These loans are interest-free, and automatically deducted from Universal Credit payments. You can borrow an ‘advance’ of up to:
Charitable grants
If you are struggling financially, you may be eligible for certain charitable grants. There are a wide range of grants available depending on your circumstances.
However, these grants will typically require you to meet specific criteria and only be able to offer limited funds.
Charitable grants are available for people who are disabled or ill, carers, bereaved, unemployed, students – and many more. The charity Turn2us has an online tool to search for grants which may be available to you.
Energy provider help
A number of energy suppliers offer help for those struggling with their energy bills. These include Scottish Power, EDF, E.ON and Octopus. It is worth contacting your energy provider to find out if you are eligible.
British Gas also offer a grant of up to £2,000 to customers of any energy provider. You will need to meet specific criteria to be eligible, and can apply on the British Gas Energy Trust website.
Council tax reduction
If you meet certain criteria or are on certain benefits, you may be able to apply for a discount on your council tax discount of up to 100 per cent.
Your local council may still be able to offer you a discretionary reduction if you are able to demonstrate you are facing severe hardship and can’t afford to pay your council tax.
To apply for a council tax reduction, you can contact your local council via the government’s website.
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. From April 1, this entitlement expanded to include 15 hours of free childcare for 2-year-olds.
From September 1, this was expanded again to include all children from the age of nine months.
You must apply online and reconfirm your eligibility every three months, in time for each school term. Working parents can also apply for tax-free childcare, giving back 20p for every 80p you put towards childcare, up to a maximum of £500 a year.
The final expansion to free childcare, coming in September 2025, will see all children under five eligible for 30 hours.
Energy Price Cap: Will it go up or down again in 2024?
Ofgem’s energy price cap will be rising from £1,568 to £1,717 – an increase of 10 percent. This will mean higher bills for most households as we head into the colder months.
The energy price cap dropped to £1,568 in July, down £122 from the April cap of £1,690.
The energy price cap is the maximum amount energy suppliers can charge you for each unit of energy if you’re on a standard variable tariff. That includes most households. It is expressed as an annual bill for an average home.
The change in prices is reflective of the cost of wholesale energy – the amount energy firms pay for their electricity and gas before supplying it to households.
How will the Labour government change benefits and pensions?
It’s likely we’ll see the new government make some significant changes to benefits and pensions, but this will happen slowly over the next few years. Planned changes usually go through consultation periods which can take months, or even years.
Labour has said it will review Universal Credit so that it “makes work pay and tackles poverty”. Work and pensions secretary Liz Kendall outlined her ‘Back to Work’ plan shortly after the election, outlining the government’s aim to focus on “economic inactivity”.
The planned changes include:
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A new national jobs and career service to help get more people into work, and help them progress in work
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New work, health and skills plans for the economically inactive, led by Mayors and local areas
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A youth guarantee for all young people aged 18 to 21 to help them find work, apprenticeships or training
“It is time for change in every corner of the country,” said Ms Kendall.
“We’ll create more good jobs, make work pay, transform skills, and overhaul job centres, alongside action to tackle the root causes of worklessness including poor physical and mental health.”
However, since coming into power the government has been criticised for refusing to lift the two-child benefit cap, which campaigners say is keeping nearly a million children in poverty.
On pensions, Labour ruled out matching the Conservatives’ ‘triple lock plus’ pledge before the election, which would have seen the tax-free pension allowance rise every year in line with the triple lock.
Instead, they have committed to a review of workplace pensions to ensure financial security in retirement.
Rachel Reeves also made the controversial decision in July to tighten the eligibility for Winter Fuel Payments, which are designed to ensure older people can afford heating in colder months.