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Entering the second month of 2025, thousands and thousands proceed to search for methods to maintain family prices low as new bills appear to attend round each nook. Household payments, groceries, mortgages and rents have all hit file highs over the previous yr, because the nation navigates the continued value of dwelling disaster.
Chancellor Rachel Reeves had a bumpy begin to the yr, because the pound slumped and authorities bonds hit new highs. However, inflation additionally noticed a slight 0.1 per cent drop in December, bringing it to 2.5 per cent, whereas the financial system returned to slight development.
Despite this blended financial image, experiences point out that the chancellor is trying to make additional cuts to illness and incapacity advantages, on high of the £3bn already pencilled in for financial savings. The DWP will likely be releasing a paper outlining its deliberate reforms to the welfare system in Spring.
Meanwhile, the most recent figures from thousands and thousands of low-income households paint a bleak image of the UK’s financial scenario. The newest analysis from The Joseph Rowntree Foundation reveals that greater than 1 in 5 folks within the UK have been dwelling in poverty in 2022/23 – round 14.3 million folks.
Meanwhile, 1000’s of pensioners should still be ready for his or her £200-300 winter gas fee after Labour’s selection to chop again the chilly climate profit. In December, The Independent revealed that elevated strain on the DWP meant many have been going through delays of over 100 days.
Against this difficult financial backdrop, right here is an outline of the monetary help obtainable to households this February and key dates for advantages recipients to look out for:
Benefit fee dates in February
Benefit funds will likely be going out as regular in February as there are not any financial institution holidays. These embody:
Universal CreditState pensionPension creditChild benefitDisability dwelling allowancePersonal independence fee (PIP)Attendance allowanceCarer’s allowanceEmployment help allowanceIncome supportJobseeker’s allowance
For extra data on how and when state advantages are paid, go to the federal government’s web site.
The DWP is aiming to finish the migration of all ‘legacy benefits’ to Universal Credit by January 2026. Those receiving tax credit, earnings help, jobseeker’s allowance, and housing profit ought to have acquired a discover about transferring to Universal Credit already. Those claiming Employment help allowance solely, or with housing profit, ought to obtain a discover like this by December 2025.
The division has additionally confirmed {that a} session will likely be launched in Spring 2025 on deliberate reforms to illness and incapacity advantages. Minister Liz Kendall says the adjustments will likely be designed “to ensure the system is better supporting people,” though experiences point out that the Treasury is trying to make main spending cuts.
A report from Policy in Practice this yr reveals that almost £23bn in advantages goes unclaimed a yr – they provide a useful calculator to work out what you is likely to be entitled to.
Have you been having points with the DWP just lately? Get in contact through electronic mail: [email protected]
Pension fee dates in February
The primary state pension is paid straight into financial institution accounts just like how advantages are paid. It is normally paid each 4 weeks, with the precise day you obtain it equivalent to the final two digits of your nationwide insurance coverage (NI) quantity.
Here’s when try to be paid primarily based on these numbers:
00 to 19: Monday 20 to 39: Tuesday 40 to 59: Wednesday 60 to 79: Thursday 80 to 99: Friday
Household help fund
The Household Support Fund (HSF) is funding given to all native councils to help susceptible households of their space. Councils are free to allocate the funds nonetheless they really feel is finest.
For occasion, some have offered money grants, grocery store vouchers, or power invoice help. Several native councils have even launched schemes to ‘replace’ the winter gas fee for pensioners. Visit your native council’s web site to seek out out what assist could also be obtainable.
In August, Labour confirmed that they might prolong the Conservative-created scheme for one more six months past the September 30 finish date. This means it ought to now proceed till the top of March 2025.
For a fast information to the help obtainable, the End Furniture Poverty charity provides a useful help finder device.
Other assist obtainable
Budgeting advance loans
The authorities provides a ‘budgeting advance loan’ for folks on Universal Credit who face an emergency lack of cash. The mortgage has a most reimbursement interval of two years.
These loans are interest-free, and routinely deducted from Universal Credit funds. You can borrow an ‘advance’ of as much as:
£348 when you’re single£464 when you’re a part of a pair£812 when you’ve got youngsters
Following the Labour Budget in October, a brand new cap has been launched on the quantity the DWP can deduct from profit funds to repay loans and money owed, together with budgeting advance loans.
From April 2025, deductions from common credit score will likely be capped at 15 per cent of the usual allowance, down from 25 per cent.
Charitable grants
If you’re struggling financially, you could be eligible for sure charitable grants. There are a variety of grants obtainable relying in your circumstances.
However, these grants will sometimes require you to satisfy particular standards and solely have the ability to supply restricted funds.
Charitable grants can be found for people who find themselves disabled or in poor health, carers, bereaved, unemployed, college students – and plenty of extra. The charity Turn2us has an internet device to seek for grants which can be obtainable to you.
Energy supplier assist
Quite a few power suppliers supply assist for these combating their power payments. These embody Scottish Power, EDF, E.ON and Octopus. It is value contacting your power supplier to seek out out in case you are eligible.
British Gas additionally supply a grant of as much as £2,000 to clients of any power supplier. You might want to meet particular standards to be eligible, and may apply on the British Gas Energy Trust web site.
Council tax discount
If you meet sure standards or are on sure advantages, you might be able to apply for a reduction in your council tax low cost of as much as 100 per cent.
Your native council should still have the ability to give you a discretionary discount if you’ll be able to display you’re going through extreme hardship and may’t afford to pay your council tax.
To apply for a council tax discount, you’ll be able to contact your native council through the federal government’s web site.
Warm dwelling low cost
The heat dwelling low cost is a one-off £150 low cost in your electrical energy invoice. It will likely be taken routinely out of your power payments in case you are eligible.
To qualify, the invoice payer have to be on a low earnings with excessive power prices or get the assure credit score factor of pension credit score.
Up to 30 hours of free childcare
All working mother and father within the UK are presently entitled to 30 hours of free childcare for youngsters aged 3 to 4. From April 1, this entitlement expanded to incorporate 15 hours of free childcare for 2-year-olds.
From 1 September, this was expanded once more to incorporate all youngsters from the age of 9 months.
You should apply on-line and reconfirm your eligibility each three months, in time for every faculty time period. Working mother and father may also apply for tax-free childcare, giving again 20p for each 80p you set in direction of childcare, as much as a most of £500 a yr.
The closing growth to free childcare, coming in September 2025, will see all youngsters beneath 5 eligible for 30 hours.
Will profit charges be going up quickly?
Following the chancellor’s Budget announcement, it was confirmed that each one advantages will likely be uprated by 1.7 per cent, matching the September 2024 inflation determine.
While this isn’t uncommon, campaigners had referred to as for Labour to think about a barely increased enhance. Inflation had been increased in earlier months, starting at 4 per cent in January and rising above 2 per cent once more from October.
The enhance will apply to all working-age advantages, together with common credit score, PIP, DLA, attendance allowance, carer’s allowance, ESA and extra.
In line with the triple lock, the State Pension will rise by 4.1 per cent – up £472 a yr – matching wage development in 2024.
Both will increase will take impact from April 2025.
Energy Price Cap: Will it go up or down once more in 2024?
Ofgem’s power worth cap has risen from £1,717 to £1,738 for January to March – a rise of 1.2 per cent. This will imply increased payments for many households because the chilly climate continues to chew.
The rise is the second consecutive enhance, with a large 10 per cent spike in October. Analysts predict an extra 3 to five per cent enhance will are available in April. Several different payments are anticipated to extend across the identical time.
The power worth cap is the utmost quantity power suppliers can cost you for every unit of power when you’re on a normal variable tariff. That contains most households. It is expressed as an annual invoice for a mean dwelling.
The change in costs is reflective of the price of wholesale power – the quantity power corporations pay for his or her electrical energy and gasoline earlier than supplying it to households.
Do you’ve got an expertise to share about the price of dwelling within the UK? Or any recommendation to share to assist others? Get in contact through electronic mail: [email protected]
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