Inflation rates rose to 4.0 percent last month, shocking economists who had expected a decline and were still far from the Bank of England’s 2 percent target.
Combined with an extremely cold start through 2024, bills, food prices and rents remain high. Food and energy bills are still above pre-pandemic levels, according to the Resolution Foundation, but projections suggest we may see them plateau or even start to decline later in 2024.
Research by the Joseph Rowntree Foundation shows that more than 56 per cent of low-income households reported not having enough money to buy food or heat their homes in the past year. Nearly half had to cut back on gifts to loved ones, with 73 percent remaining without secure income to afford food.
Here’s a brief overview of government financial support available to low-income families in February and the dates when benefit recipients can expect their money to be paid:
Benefits of going out as usual
The usual benefits and pension payments will be disbursed as usual in February, with no public holidays due to disrupt delivery dates. here they are:
- Universal Credit
- State pension
- Trust retirement
- Disability living allowance
- Promote personal independence
- Attendance allowance
- Carer’s allowance
- Employment support allowance
- Income support
- Instead of searching for work
For more information about how and when to pay state benefits, please Visit the government website.
Next is the cost of living
A final cost of living of £299 will be paid Between February 6, 2024 and February 22, 2024. People who receive certain benefits or tax breaks are eligible for cost-of-living payments. These include: Universal Credit, Jobseekers’ Allowance, Employment Support Allowance, Income Support, cCedit for pensions, Child Tax Credit and Working Tax Credit.
This payment follows several others made throughout 2023:
- £301 – the first cost of living payment – issued between 25 April and 17 May (or 2 to 9 May for people on tax credits but no other benefits on low incomes)
- £150 – Disability Payment – issued between 20 June and 4 July
- £300 – second cost of living payment – issued between 31 October and 19 November for most people
- £300 – pensioner payment – issued in November 2023
If you think you are eligible for these payments but have not received them, you should contact the Joint Work Program.
Benefits of winter and cold weather
There are three main support plans available to people as cold weather sets in in the winter months:
Cold weather payments
A cold snap at the start of the year saw many zip codes qualify for cold weather payments. If you live in an area that has had seven or more days of temperatures at or below zero, you are eligible for £25 for every seven cold days. In Scotland, this scheme has recently been replaced by a winter heating payment system.
Warm Home Discount
If you’re on a low income and have high energy costs, you can get a one-off payment of £150 to help pay your bills. You will also be eligible if you take the credit guarantee element of your pension credit. The discount must be applied to energy bills between October 2023 and March 2024. The scheme works slightly differently for Scottish applicants.
You should receive a letter in January 2024 if you are eligible. If it does not, You should contact the DWPBefore February 29, 2024.
Fuel payment in winter
You will automatically qualify for this if you are over state pension age (66) and live in the UK. The rebate gives you between £250 and £600 to help pay your heating bills. You do not need to apply if you are currently receiving a state pension or most other benefits. If you do not, you may need to submit an application.
The debit funds should have automatically entered your account in October or November. If you think you are eligible but have not received a payment, Contact the DWP for further guidance.
Energy price cap: will it rise or fall in 2024?
As of January 1, The maximum energy price has been set at £1,928up from £1,834 at the end of 2023. Analysts at reliable Cornwall Insight expect this figure to fall in April to £1,660, and again in July to £1,590, before rising again to £1,639.97. GBP in the last months of 2024.
The energy price cap is the maximum amount that energy suppliers can charge you per unit of energy if you are on a standard variable tariff. This includes most families.
The recent decline in prices reflects a recent decline in wholesale energy costs – the amount energy companies pay for electricity and gas before supplying it to households. Although this represents a significant fall on the record high rates of the past two years, the figure is still around £1,000 a year higher than pre-pandemic levels.
“Anyone who needs to use heating to stave off freezing temperatures this week,” says Rachel Earwaker, chief economist at JRF. [January 17] They can expect to pay more than 80% of what they were paying three years ago.
“The price rises have outpaced the increases in subsidies, which will not increase again until April, and even then, they will not make up the difference.”
Will benefits and pensions rise in 2024?
State benefits and pensions are scheduled to increase in April 2024.
In his autumn statement, Jeremy Hunt said benefits would increase at the September inflation rate of 6.7 per cent. He also announced that state pensions would be increased by 8.5 percent around the same time.
However, the Child Poverty Action Group (CPAG) has warned that failure to lift the benefit cap will push more people beyond the cap threshold, meaning a real cut for many.
Have you been affected by rising inflation or do you have a story to tell about your experience during the high cost of living crisis? Contact us by email: albert.toth@independent.co.uk