August 2024 dates for benefits and pensions payments as Labour pledges to tackle cost of living

Get the free Morning Headlines email for news from our reporters across the world

Sign up to our free Morning Headlines email

Following the rampant inflation of the past few years, sky-high prices persist, as millions continue to struggle to pay their bills, afford the essentials or even keep a roof over their heads.

Inflation finally reached the Bank of England’s 2 per cent target in June – for the first time in three years. It is down from a peak of 11.1 per cent in October 2022.

While this is welcome economic news, declining inflation unfortunately does not mean costs are going back to what they were previously, just that they have begun rising less fast.

The latest annual figures on low-income households paint a bleak picture of the UK’s economic situation. They show absolute poverty has increased for two years in a row, with nearly a million more people in poverty in 2022/23 than in 2021/2022.

Recent research from the Joseph Rowntree Foundation also shows that nearly a million people are only £10 away from poverty, while 3.2 million are just £40 clear.

The group, alongside over 200 other organisations, wrote a letter in the run-up to the general election asking the new prime minister to make hardship a top priority for their government from day one. The authors criticised a “lack of focus” from both parties.

In their manifesto, the new Labour government pledged to tackle the cost of living crisis by dealing with its underlying causes. Work and pensions secretary Liz Kendall has said the DWP will focus on tackling “economic inactivity,” aiming to boost employment with their new ‘Back to Work’ plan.

Here is an overview of the financial support available to low-income families this August and key dates for benefits recipients to look out for:

Benefits going out as usual

The usual benefits and pension payments will be going out mostly as normal in August. These are:

There is one bank holiday this month, on Monday 26 August. If your usual payment date falls on this bank holiday, you should be paid the working day before (Friday 23 August).

For more information on how and when state benefits are paid, visit the government’s website.

A report from Policy in Practice last year shows that nearly £19bn in benefits goes unclaimed a year – they offer a helpful calculator to work out what you might be entitled to.

Have you been affected by the issues in this story? Get in touch via email: albert.toth@independent.co.uk

Household support fund

In the spring Budget, former chancellor Jeremy Hunt confirmed the Household Support Fund (HSF) would be extended for six months beyond the original 31 March deadline.

The 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. Visit your local council’s website to find out what help may still be available.

To find out what support is available, the End Furniture Poverty charity offers a helpful assistance finder tool.

Other help available

Budgeting advance loans

The government offers a ‘budgeting advance loan’ for people on Universal Credit who face an emergency lack of money. Prior to the budget, the repayment period for these loans was 12 months. It has now been doubled to two years.

These loans are interest-free, and automatically deducted from Universal Credit payments. You can borrow an ‘advance’ of up to:

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 will expand to include 15 hours of free childcare for 2-year-olds.

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.

There are two more expansions to free childcare planned in the coming years:

Energy Price Cap: Will it go down again in 2024?

The energy price cap dropped to £1,568 in July, down £122 from the April cap of £1,690. However, analysts at the trusted Cornwall Insight predict this figure will rise in October to £1,723.06.

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 recent decline in prices is reflective of recent drops in wholesale energy costs – the amount energy firms pay for their electricity and gas before supplying it to households.

How will the new Labour government affect benefits and pensions?

It’s likely we’ll see the new government make some significant changes to benefits and pensions, but this will happen slowly over the next few years. Planned changes usually go through consultation periods which can take months, or even years.

Labour has said it will review Universal Credit so that it “makes work pay and tackles poverty”. Work and pensions secretary Liz Kendall outlined her ‘Back to Work’ plan shortly after the election, outlining the government’s aim to focus on “economic inactivity”.

The planned changes include:

“It is time for change in every corner of the country,” said Ms Kendall.

“We’ll create more good jobs, make work pay, transform skills, and overhaul job centres, alongside action to tackle the root causes of worklessness including poor physical and mental health.”

On pensions, Labour ruled out matching the Conservatives’ ‘triple lock plus’ pledge before the election, which would have seen the tax-free pension allowance rise every year in line with the triple lock.

Instead, they have committed to a review of workplace pensions to ensure financial security in retirement.