August 2024 Payment Schedule: Benefits and Pensions Following Cost of Living Adjustments
After years of uncontrollably high inflation, prices have risen even further, leaving millions of people unable to purchase basic necessities, pay their bills, or even maintain a roof over their heads.
For the first time in three years, inflation in June at last hit the Bank of England’s objective of 2%. It has decreased since October 2022, when it peaked at 11.1%.
Although this is good news for the economy, falling inflation does not imply that costs will return to their prior levels; rather, it just means that they will rise more slowly.
The most recent yearly data on low-income households presents a dismal image of the state of the British economy. According to them, there has been a two-year increase in absolute poverty, with about a million more people living in poverty in 2022–2023 than in 2021–2022.
According to recent study by the Joseph Rowntree Foundation, 3.2 million people are just £40 clear of poverty, and over a million people are only £10 away.
The new Labour government promised in its manifesto to address the root causes of the cost of living crisis. With its new “Back to Work” initiative, the Department of Work and Pensions (DWP) hopes to increase employment by focussing on “economic inactivity,” according to Work and Pensions Secretary Liz Kendall.
According to a report released this year by Policy in Practice, over £23 billion in benefits remain unclaimed annually. They provide a useful calculator to determine your potential entitlements.
Have you recently had trouble contacting the DWP or with their customer service? Please contact albert.toth@independent.co.uk by email.
Fund for household assistance
Former chancellor Jeremy Hunt said in the spring Budget that the Household Support Fund (HSF) will be extended over the initial deadline of March 31 by six months.
All local councils get cash from the HSF to assist the most needy households in their communities. Councils are allowed to distribute the money anyway they see fit.
Some have, for example, given cash grants, grocery store coupons, or help with energy bills. Check out the website of your local municipality to see what assistance is still available.
The nonprofit organisation End Furniture Poverty provides a useful aid finding tool to help you determine what support is available.
Additional Assistance Offered
For recipients of Universal Credit who have an unexpected financial shortfall, the government provides a “budgeting advance loan.” These loans had a 12-month payback period prior to the budget. Now, it is twice as long, at two years.
These loans are automatically deducted from your Universal Credit installments and have no interest. The maximum “advance” you can borrow is £348 if you’re single; £464 if you’re in a relationship; and £812 if you have children
Donor Grants
If you are having financial difficulties, you can qualify for some donations from charitable organisations. Several different awards are available based on your situation.
But in order to receive these grants, you usually have to fulfil certain requirements and have a restricted amount of money to give.
Individuals with disabilities or illnesses, carers, bereaved families, jobless individuals, students, and many more can apply for charitable funds. You can use an online tool provided by the charity Turn2us to look for grants that you might be eligible for.
Assistance from Energy Providers
Many energy providers provide assistance to customers who are having trouble paying their energy bills. Among them are Octopus, Scottish Power, EDF, and E.ON. It is worthwhile to enquire with your energy supplier to see if you qualify.
Additionally, British Gas offers its customers, regardless of energy provider, a grant of up to £2,000. To be eligible, you must fulfil certain requirements. You can apply on the British Gas Energy Trust website.
Lowering of Council Taxes
You can qualify for a council tax rebate of up to 100% if you fit certain requirements or receive certain perks.
If you can prove you’re in a dire situation and can’t afford your council tax, your local council could still be able to grant you a discretionary decrease.
You can use the government website to get in touch with your local council in order to request a decrease in council taxes.
30 hours or more of free nursery
For children ages three to four, working parents in the UK are now entitled to 30 hours of free daycare. Starting on April 1, two-year-olds will be eligible for 15 hours of free childcare.
To be eligible for each school term, you must apply online and verify your eligibility every three months. Working parents can also apply for tax-free childcare, which can reimburse you up to £500 annually for every 80p you spend on childcare.
In the upcoming years, there are two more extensions of free daycare scheduled:
- September 2024: Free 15 hours of nursery are available to all children starting at nine months of age.
- September 2025: Free 30-hour creche is available for all children under five.
Energy Price Cap: Will 2024 see another decrease?
The maximum on energy prices was reduced by £122 from £1,690 in April to £1,568 in July. But experts at reliable Cornwall Insight forecast that this amount will increase to £1,723.06 in October.
If you’re on a typical variable tariff, the energy price cap is the maximum amount that energy suppliers can charge you per unit of energy. Most households are included in that. It is stated as an average home’s annual bill.
The amount that energy companies pay for their gas and electricity before selling it to homes is known as wholesale energy costs, and recent decreases in these costs are reflected in price reductions.
What impact will the incoming Labour government have on pensions and benefits?
The next government will probably make some big adjustments to benefits and pensions, but these adjustments will probably take time to materialise. Consultation periods for planned changes typically last for months or even years.
According to Labour, Universal Credit will be reviewed to ensure that it “makes work pay and tackles poverty.” Soon after the election, Liz Kendall, the secretary of work and pensions, unveiled her “Back to Work” plan, emphasising the government’s goal of concentrating on “economic inactivity.”
Among the anticipated adjustments are:
- A new nationwide career and employment service to assist in increasing the number of persons employed and advancing their careers
- New work, health, and skill plans headed by local areas and mayors for the economically inactive
- A youth guarantee to assist all youths between the ages of 18 and 21 in obtaining employment, apprenticeships, or training
“Change is needed across the board,” Ms. Kendall declared.
“We’ll address the underlying causes of unemployment, such as poor physical and mental health, in addition to increasing the number of well-paying jobs, improving job centres, and transforming skills.”
Regarding pensions, Labour declined to meet the Conservatives’ pre-election “triple lock plus” plan, which called for an annual increase in the tax-free pension allowance in accordance with the triple lock.
Rather, they have pledged to examine worker pensions in order to guarantee retirement security.