May 2024 dates for benefits and pensions after cost of living payments

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Millions of people received a major boost to their income in April as the new fiscal year once again brought annual increases to benefits and the state pension.

The yearly uprating is in place to ensure incomes increase relative to prices, which have risen rapidly over the past few years amid the sky-high inflation of the cost of living crisis.

The economy has continued to move in a positive direction over the past few months, as inflation dropped once again in April to 3.2 per cent, down from March’s 3.4 per cent figure.

However, the decline in inflation has begun to level off after falling rapidly in late 2023, leading to fears that returning to 2020 levels of 1 per cent or lower may still take some time.

Prices also remain much higher than they were a few years ago, as declining inflation does not mean costs are going back to what they were previously, just that they have begun rising less fast.

The government’s latest annual figures on low-income households also 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 21/22.

Against these difficult economic circumstances, here is an overview of the financial support available to low-income families this May and key dates for benefits recipients to look out for:

Benefits going out as usual

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

However, if your payment date falls on one of May’s bank holidays you can expect to be paid on the working day before it.

Payments falling on the early May bank holiday (6 May) should be paid on 5 May, and those falling on the Spring bank holiday (27 May) should be paid on 26 May.

The DWP has also issued a warning to 500,000 benefit claimants that they will soon need to take action as six ‘legacy benefits’ are replaced by Universal Credit.

For more information on how and when state benefits are paid, please 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, Jeremy Hunt confirmed the Household Support Fund (HSF) would be extended for 6 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. You will need to visit your local council’s website to find out what help may still be available.

To find out what support is available to you, the End Furniture Poverty charity offer 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 2 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 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 £1,690 in April, down £238 from the January cap of £1,928.

Analysts at the trusted Cornwall Insight predict this figure will fall again in July to £1,559.61, but then rise slightly in October to £1,631.44.

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.

Although it is a significant slide from the record-high rates of the last two years, the figure remains almost £1,000 a year above pre-pandemic levels.

Are benefits and pensions going up in 2024?

Benefits and the state pension both increased in April. In line with the September 2023 rate of inflation, benefits rose by 6.7 per cent.

Due to the government’s triple lock guarantee, the state pension increased by 8.5 per cent in line with average earnings growth. This marked the second largest rise after the 10.1 per cent rise in 2023.

However, as the state pension is paid in arrears – meaning at the end of the period for which it is due – it could take up to May 6 for everyone to start receiving the new amount.