Britain’s consumer price index, which measures inflation, fell to 4.6% in the 12 months to October, its lowest level in almost two years. This means that the government’s pledge to halve inflation from 10.7% by the end of 2022 has largely been achieved well ahead of schedule. Thanks to falling energy prices.
However, it remains well above the Bank of England’s 2% target, and the cost of goods and services remains high as the Christmas season approaches, putting pressure on household budgets.
The arrival of colder weather means turning on the radiators to stay warm, while the Christmas season means spending on food, drinks, gifts, decorations and travel at a time when many are resisting it. The Joseph Rowntree Foundation (JRF) recently reported that as many as two million households in the UK have been forced to unplug their fridges and freezers to reduce electricity bills, adding: ” warns of a level of deprivation.
JRF also found that 2.8 million people are in debt to pay for food, and one in six survey respondents are forced to use a “warm room” in their community instead of using electricity at home. He also made it clear that he didn’t get it. Lifestyles continue to be in crisis.
“Even though inflation is starting to fall, the situation for low-income households has not improved,” said Peter Matejic, chief analyst at the foundation.
“Too many people are trying to stay afloat by taking out loans to pay for food, selling their belongings, or relying on warm banks.”
Mr Matejic called on Prime Minister Jeremy Hunt to increase benefits in line with inflation and increase local housing benefit to ensure living standards do not fall further.
Here’s an overview of the state’s financial support available to low-income households this winter, and the dates benefits recipients can expect to receive their benefits amid the chaos and chaos of the Christmas period.
Benefit dates are affected by holidays
Normal state support in the form of benefits and pension payments will be paid out in December as usual, but the dates will be changed as Christmas, Boxing Day and New Year’s Day are all bank holidays.
People who are due to receive the following payments from the Department for Work and Pensions (DWP) on Saturday 23rd, Sunday 24th, Monday 25th or Tuesday 26th will be able to receive them on Friday 22nd December instead and will be paid by 30 Those who were scheduled to pick it up on Saturday or Sunday can pick it up instead. If it is Monday December 31st or January 1st, he will receive it on Friday December 29th instead.
- universal credit
- national pension
- Pension deduction
- Disabled living allowance
- personal independence allowance
- Nursing care allowance
- caregiver allowance
- Employment support allowance
- income support
- Job applicant allowance
For more information about how and when state benefits are paid, visit: government website.
The next support payment is scheduled for spring
Despite Rishi Sunak’s Energy Bill Support Scheme – an initiative that handed out £400 in monthly installments of £66 and £67 – to expire at the end of March this year, millions of people on low incomes have been left with no money from the government. They will receive further support for living expenses. The government is worth up to £1,350 in total this calendar year.
Eight million eligible means-tested benefit claimants, including those in receipt of Universal Credit, Pension Credit and tax credits, will soon receive a £300 boost to their next living allowance package as part of a program launched this spring. You will receive it directly. DWP said the money would be transferred to bank accounts in three installments.
Total payments will total £900.
More than six million disabled people have already received an extra £150, and more than eight million pensioners will receive an extra £300 this winter.
here it is Payment counter Announced so far, a more exact date for the final episode will be announced soon.
- £301 – First subsistence payment – issued between April 25th and May 17th (May 2nd to May 9th for people receiving tax credits but no other low income allowances) until the day)
- £150 – Disability Allowance – Issued between 20th June and 4th July.
- £300 – second subsistence payment – issued to most people between 31st October and 19th November
- £300 – Pensioner Payment – November 2023
- £299 – 3rd living expenses payment – during spring 2024
Energy price ceiling expected to fall further
The cost of heating their homes during the winter months was a huge concern for many people last year as the miserable drizzly weather we experienced in November brought temperatures down and made it impossible to delay switching on the central heating. It brought back unpleasant memories. .
However, the energy crisis that sent electricity and gas prices soaring a year ago has largely subsided, and the government’s Energy Price Guarantee (EPG), introduced by short-lived chancellor Liz Truss in September 2022, will help households The purpose is to avoid paying the following amounts: His electricity bill was £2,500, and the government subsidized the remainder he owed to his provider under Ofgem’s Energy Price Cap (EPC), but when that cap fell below his £2,500 in July. , finally rendered meaningless.
At this point, the average consumer is back to paying the top rate as usual, with a significant 17% reduction from £3,280 in Q2 to £2,074 in Q3, with a corresponding EPG of £2,074. It was raised to the pound. 3,000 is a harmless technical term for most people.
Ofgem then announced that the EPC for the final quarter of this year was set at £1,923 (or £1,949 for prepaid plans).
The recent drop reflects a recent decline in wholesale energy prices (the amount you pay for electricity and gas before energy companies deliver it to your home), which is a sharp drop from the eye-watering rates of the past two years. Despite this decline, this figure is still almost £1,000 a year above pre-pandemic levels.
Cornwall Insight analysts predict what will happen next Almost no change By the time the next EPC is published for the quarter commencing 1 January 2024, the typical annual bill is expected to be £1,923.33.
The forecaster then predicts a slight uptick through the second and third quarters of next year, followed by a decline, followed by another slight uptick in October 2024.
Nevertheless, overall the situation looks much more stable than a year ago, when the buzz of Russia’s war in Ukraine was first felt in global markets.
Warm Home Discount Returns
As the long nights approach, another piece of good news for household energy bills is the Government’s ‘Warm Home’ scheme, first introduced in 2011, which cuts domestic electricity and gas bills by £150 for eligible recipients. The discount system has been reinstated.
The one-time discount will be automatically applied to your bill from early October 2023 through March 31, 2024. Guaranteed credit element of pension credit or low income And energy costs are high.
Learn more about Warm Home discount eligibility.