As the cost of living crisis continues to affect millions across the UK, many households are still grappling with record-high prices for essential items such as groceries, rent, mortgages, and utility bills. Even though inflation has eased compared to last year, the situation remains challenging for many low-income families.
In October 2024, here’s what you need to know about your benefits, pension payment dates, and other available financial support.
Inflation and Economic Struggles Continue
Inflation briefly hit the Bank of England’s 2% target in June but climbed back to 2.2% in July, and remained there in August. Although this is far below the October 2022 peak of 11.1%, costs remain much higher than before the crisis began. Even with inflation slowing, the price of essential goods and services is not returning to previous levels.
Many low-income families are finding it difficult to make ends meet. Research by The Trussell Trust in September revealed that nearly half of Universal Credit recipients ran out of food in the past month. The charity also reported that 68% of these households struggled to afford essentials over the last six months, with poverty rates rising for two consecutive years.
The Labour Government’s Response
The Labour government has made tackling the cost of living crisis a key priority. Work and Pensions Secretary Liz Kendall announced plans to address “economic inactivity” through their ‘Back to Work’ plan, aimed at getting more people into employment.
Later this month, Chancellor Rachel Reeves is set to present her first budget, with experts expecting a mix of tax increases and spending cuts. Prime Minister Keir Starmer has cautioned that these fiscal changes will be “painful,” but necessary.
Key Dates: October Benefit and Pension Payments
Despite ongoing economic uncertainty, October’s benefit and pension payments will be made as scheduled, since there are no public holidays to affect the regular payment cycle. These payments include:
- Universal Credit
- State Pension
- Pension Credit
- Child Benefit
- Disability Living Allowance
- Personal Independence Payment (PIP)
- Attendance Allowance
- Carer’s Allowance
- Employment and Support Allowance (ESA)
- Income Support
- Jobseeker’s Allowance (JSA)
For more details on payment dates, you can visit the official UK government website.
Unclaimed Benefits: Are You Missing Out?
Research by Policy in Practice suggests that nearly £23 billion worth of benefits go unclaimed every year. Make sure you’re claiming everything you’re eligible for.
Support Options Available
Household Support Fund (HSF)
The Labour government has extended the Household Support Fund (HSF) until March 2025. Administered by local councils, the HSF provides financial assistance to vulnerable households. Depending on your area, this could include supermarket vouchers, energy bill support, or cash grants. Visit your local council’s website for more information on how to apply.
Budgeting Advance Loans
If you’re on Universal Credit and facing an emergency, you may be eligible for a Budgeting Advance Loan. These loans are interest-free, with repayments automatically deducted from your Universal Credit payments. You can borrow up to:
- £348 if you’re single
- £464 if you’re in a couple
- £812 if you have children
Charitable Grants
Various charitable grants are available for those in financial need, including help for individuals who are disabled, carers, bereaved, or unemployed. Use the charity Turn2us’ online tool to see what grants you might be eligible for.
Energy Supplier Support
Energy providers like British Gas, EDF, Scottish Power, and E.ON offer assistance to customers struggling with energy bills. British Gas also provides a grant of up to £2,000 to households in need, regardless of your energy provider. Visit the British Gas Energy Trust website for details.
Council Tax Reduction
You may be eligible for a council tax reduction if you’re on certain benefits or can demonstrate severe financial hardship. Reductions can be as high as 100%. Contact your local council for more information.
Free Childcare
Working parents in the UK are eligible for 30 hours of free childcare for children aged 3 and 4. As of September 2024, this was expanded to include all children aged nine months and older. By September 2025, all children under five will be entitled to 30 hours of free childcare.
Energy Price Cap Changes
Ofgem’s energy price cap will rise by 10% in October 2024, increasing from £1,568 to £1,717. While this rise will result in higher bills for many households, it still offers some protection by capping the maximum amount suppliers can charge for energy use.
What’s Ahead for Benefits and Pensions?
The Labour government has indicated that changes to benefits and pensions will be introduced gradually over the coming years. A review of Universal Credit aims to make work pay and reduce poverty, while planned changes include:
- A new national jobs and career service
- Local work, health, and skills plans led by Mayors and councils
- A youth guarantee for individuals aged 18 to 21, helping them find work, training, or apprenticeships
Labour has faced criticism for refusing to lift the two-child benefit cap, a policy campaigners argue has kept nearly a million children in poverty. Additionally, Labour has tightened the eligibility criteria for Winter Fuel Payments, potentially limiting support for pensioners.
As the UK continues to navigate economic difficulties, knowing when your benefit payments are due and exploring the available support can help you manage financial challenges. Stay informed on upcoming changes, and be sure to claim all the benefits you’re entitled to in order to ease the pressure of rising costs.