Economic Struggles Amid Rising Costs
As essential needs’ costs soar, millions of people in the UK struggle financially. Consumer spending is unheard of, and utilities, housing, and food prices are also rising. Low pay and relentless inflation have made life more difficult for many Britons. Households are still finding it challenging to deal with the growing living costs, even if inflation rates have decreased.
Rising Food Insecurity
Recent reports paint a troubling picture of economic hardship for low-income families. According to the Trussell Trust, over half of those receiving Universal Credit experienced hunger in September, a figure that continues to climb. The Joseph Rowntree Foundation revealed a significant increase in poverty, with more than one million additional individuals living in deprivation compared to the previous year.
Government Response: Labour’s Initiatives
The next Labour administration will address the causes of the cost-of-living crisis. Liz Kendall’s “Back to Work” plan will address “economic inactivity” to increase employment.
Chancellor Rachel Reeves is set to deliver her first budget at the end of the month, with tax increases and spending cuts expected. Sir Keir Starmer has already warned of a “painful” fiscal event ahead.
Financial Help for October
For October, benefit and pension payments will proceed as usual, unaffected by bank holidays. The following benefits will be disbursed:
- Universal Credit
- State Pension
- Pension Credit
- Child Benefit
- Disability Living Allowance
- Personal Independence Payment
- Attendance Allowance
- Carer’s Allowance
- Jobseeker’s Allowance
- Income Support
More information about payment methods and dates can be found on the government’s website.
Unclaimed Benefits
A report from Policy in Practice revealed that approximately £23 billion in benefits went unclaimed last year. Tools are available online to help individuals calculate their entitlements.
Household Support Fund Extended
The Labour government has extended the Household Support Fund (HSF), initially created by the Conservatives, for an additional six months, lasting until March 2025. Local councils will distribute HSF aid to low-income households, providing cash assistance, store vouchers, and energy bill support. Visit your local council’s website for more information.
Additional Support Options
Budgeting Advance Loans
Universal Credit recipients needing emergency funds can apply for a “budgeting advance loan.” Repayment is limited to two years, with the following limits:
- Up to £348 for single individuals
- Up to £464 for couples
- Up to £812 for families with children
Charity Grants
Various charities offer financial assistance to those facing hardship. While these grants often come with specific eligibility criteria, they can provide crucial support. Resources like Turn2us offer grant search tools.
Energy Provider Assistance
Energy suppliers such as Scottish Power, EDF, E.ON, and Octopus may offer aid for energy bills. Additionally, customers can apply for a £2,000 incentive from British Gas if they meet certain conditions.
Council Tax Discounts
Individuals on specific benefits or those experiencing financial hardship may qualify for a 100% council tax rebate. Contact your local council for information on discretionary reductions.
Free Childcare
All UK working parents can access 30 hours of free childcare for 3-4-year-olds, with additional support for 2-year-olds and now extending to 9-month-olds. Eligibility checks are required every three months.
Energy Price Cap Changes
Ofgem’s energy price cap will rise by 10% this winter, increasing from £1,568 to £1,717, reflecting the costs faced by energy suppliers. While this marks an increase, the cap had previously decreased in July.
Future Changes Under Labour
The incoming Labour administration may implement significant changes to benefits and pensions over the coming years. Plans include revising Universal Credit to support better-working families and launching initiatives to address economic inactivity.
Among the anticipated changes:
- A national jobs and career service to assist individuals in finding employment.
- Localized strategies led by mayors to improve job prospects and health for economically inactive populations.
- A youth guarantee program for 18-21-year-olds to facilitate employment and training opportunities.
While the Labour government has faced criticism for not lifting the two-child benefit limit, plans to reassess pension systems are underway to enhance retirement security.
In the realm of elderly support, recent changes to the Winter Fuel Payment eligibility have raised concerns among advocates for older people.
By understanding these benefits and resources, low-income families can better navigate the challenging economic landscape in the UK.
