With inflation falling back to 3.9%, many continue to struggle amid the ongoing cost of living crisis. Although the figure is close to the Bank of England’s 2% target, household bills, grocery costs and mortgages remain high.
Research by the Joseph Rowntree Foundation (JRF) shows that up to two million UK households have found themselves having to unplug their fridge or freezer to keep bills down, warning of “alarming” levels of hardship. At the same time, they say 2.8 million people have fallen into debt to pay for food, and 1 in 6 say they have had to use a ‘warm room’.
Here’s a brief overview of government financial support available to low-income families in January and the dates when benefit recipients can expect their money to be paid.
Will my benefits be paid before the new year?
If any of your regular payments are due on New Year’s Day (January 1), Saturday 30, or Sunday 31 December, you should receive them on Friday, December 29 instead.
Benefits of going out as usual
The usual government support in the form of benefits and pension payments will be disbursed as usual in January, with no public holidays due to disrupt delivery dates, except on New Year’s Day. 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.
When do you expect your next cost of living payment?
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, Pensions Credit, 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.
Warm Home Discount
The scheme was first introduced in 2011, and offers a £150 reduction on domestic electricity and gas bills for eligible beneficiaries. A one-off discount is automatically applied to your bill Between early October 2023 and 31 March 2024, you are eligible for the scheme if you receive Guarantee the credit component of superannuation credit Or if you are on Low income It has high energy costs.
The energy price ceiling is expected to fall
Ofgem has announced that EPC has been set at £1,923 for the final quarter of this year (or £1,949 for those on prepaid plans) and will then rise slightly to £1,928 (or £1,960 for prepaid) for the final quarter of the year. First quarter of 2024.
Analysts at Cornwall Insight expect Another fall By the time the next EPC is announced for the second quarter of next year, at which point you would expect the typical annual bill to be £1,816.46.
The latest drop in prices reflects the recent fall in wholesale energy costs – the amount energy companies pay for electricity and gas before supplying it to households – and although this represents a significant fall on the staggering rates of the past two years, the figure is still around £1,000 a year higher than Pre-pandemic levels.
Are benefits and pensions scheduled to increase in 2024?
State benefits and pensions are scheduled to increase in April 2024.
In his autumn statement, Jeremy Hunt said benefits would increase at September’s inflation rate of 6.7 percent. 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.