As we head into Spring, many will be looking forward to the warmer weather and cheaper bills that the season promises after a biting – and expensive – couple of months.
Households will gain from several income boosts set for April for both those in and out of work. All DWP-administered benefits will be rising 1.7 per cent as the state pension rises by 4.1 per cent in line with the triple lock.
The minimum wage will also rise by an inflation-busting 6.7 per cent, giving millions of workers a bumper £1,400 pay rise.
But there’s some bad news to prepare for too. Household bills are set to see big rises across the board in April, including energy, water and council tax.
Inflation has also remained stubbornly above the Bank of England’s two per cent since October, sitting at 2.5 per cent in December. This means prices continue to rise at rates well above pre-pandemic levels, with Bank forecasts indicating that CPI may not fall below this level again until 2027.
Meanwhile, the latest figures from millions of low-income households paint a bleak picture of the UK’s economic situation. Latest research from the Joseph Rowntree Foundation found that more than 1 in 5 people in the UK (21 per cent) were in poverty in 2022/23 – 14.3 million people. This comprised 8.1 million working-age adults, 4.3 million children, and 1.9 million pensioners.
Against this difficult economic backdrop, here is an overview of the financial support available to households this March and key dates for benefit and state pension recipients to look out for:
Benefit payments will be going out as normal in March as there are no bank holidays. These include:
For more information on how and when state benefits are paid, visit the government’s website.
The DWP is aiming to complete the migration of all ‘legacy benefits’ to Universal Credit by January 2026. Those receiving tax credits, income support, jobseeker’s allowance, and housing benefit should have received a notice about moving to Universal Credit already. Those claiming Employment support allowance only, or with housing benefit, should receive a notice like this by December 2025.
Labour will also soon lay out its plans to cut spending on sickness and disability benefits, with ministers remaining committed to the £3 billion in savings pencilled in by the previous government. Exact details are yet to be revealed, but the DWP says it will release a green paper on the changes in Spring.
A report from Policy in Practice this year shows that nearly £23bn in benefits goes unclaimed a year – they offer a helpful calculator to work out what you might be entitled to.
Have you been having issues with the DWP recently? Get in touch via email: albert.toth@independent.co.uk
The basic state pension is paid straight into bank accounts similar to how benefits are paid. It is usually paid every four weeks, with the exact day you receive it corresponding to the last two digits of your national insurance (NI) number.
Here’s when you should be paid based on those numbers:
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00 to 19: Monday
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20 to 39: Tuesday
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40 to 59: Wednesday
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60 to 79: Thursday
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80 to 99: Friday
The Household Support Fund (HSF) is funding given to all local councils to support vulnerable households in their area. Councils are free to allocate the funds however they feel is best.
For instance, some have provided cash grants, supermarket vouchers, or energy bill assistance. Several local councils have even launched schemes to ‘replace’ the winter fuel payment for pensioners. Visit your local council’s website to find out what help may be available.
In August, Labour confirmed that they would extend the Conservative-created scheme for another six months beyond the September 30 end date. This means it should now continue until the end of March 2025.
For a quick guide to the support available, the End Furniture Poverty charity offers a helpful assistance finder tool.
Budgeting advance loans
The government offers a ‘budgeting advance loan’ for people on Universal Credit who face an emergency lack of money. The loan has a maximum repayment period of two years.
These loans are interest-free, and automatically deducted from Universal Credit payments. You can borrow an ‘advance’ of up to:
Following the Labour Budget in October, a new cap has been introduced on the amount the DWP can deduct from benefit payments to repay loans and debts, including budgeting advance loans.
From April 2025, deductions from universal credit will be capped at 15 per cent of the standard allowance, down from 25 per cent.
Charitable grants
If you are struggling financially, you may be eligible for certain charitable grants. There are a wide range of grants available depending on your circumstances.
However, these grants will typically require you to meet specific criteria and only be able to offer limited funds.
Charitable grants are available for people who are disabled or ill, carers, bereaved, unemployed, students – and many more. The charity Turn2us has an online tool to search for grants which may be available to you.
Energy provider help
A number of energy suppliers offer help for those struggling with their energy bills. These include Scottish Power, EDF, E.ON and Octopus. It is worth contacting your energy provider to find out if you are eligible.
British Gas also offer a grant of up to £2,000 to customers of any energy provider. You will need to meet specific criteria to be eligible, and can apply on the British Gas Energy Trust website.
Council tax reduction
If you meet certain criteria or are on certain benefits, you may be able to apply for a discount on your council tax discount of up to 100 per cent.
Your local council may still be able to offer you a discretionary reduction if you are able to demonstrate you are facing severe hardship and can’t afford to pay your council tax.
To apply for a council tax reduction, you can contact your local council via the government’s website.
Up to 30 hours of free childcare
All working parents in the UK are currently entitled to 30 hours of free childcare for children aged 3 to 4. From April 1, this entitlement expanded to include 15 hours of free childcare for 2-year-olds.
From 1 September, this was expanded again to include all children from the age of nine months.
You must apply online and reconfirm your eligibility every three months, in time for each school term. Working parents can also apply for tax-free childcare, giving back 20p for every 80p you put towards childcare, up to a maximum of £500 a year.
The final expansion to free childcare, coming in September 2025, will see all children under five eligible for 30 hours.
Following the chancellor’s Budget announcement, it was confirmed that all benefits will be uprated by 1.7 per cent, matching the September 2024 inflation figure.
While this is not unusual, campaigners had called for Labour to consider a slightly higher increase. Inflation had been higher in previous months, beginning at 4 per cent in January and rising above 2 per cent again from October.
The increase will apply to all working-age benefits, including universal credit, PIP, DLA, attendance allowance, carer’s allowance, ESA and more.
In line with the triple lock, the State Pension will rise by 4.1 per cent – up £472 a year – matching wage growth in 2024.
Both increases will take effect from April 2025.
Ofgem’s energy price cap has risen from £1,717 to £1,738 for January to March – an increase of 1.2 per cent. This will mean higher bills for most households as the cold weather continues to bite.
The rise is the second consecutive increase, with a massive 10 per cent spike in October. Analysts predict a further 5 to 7 per cent increase will come in April. Several other bills are expected to increase around the same time.
The energy price cap is the maximum amount energy suppliers can charge you for each unit of energy if you’re on a standard variable tariff. That includes most households. It is expressed as an annual bill for an average home.
The change in prices is reflective of the cost of wholesale energy – the amount energy firms pay for their electricity and gas before supplying it to households.
Do you have an experience to share about the cost of living in the UK? Or any advice to share to help others? Get in touch via email: albert.toth@independent.co.uk
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