Inflation rates rose to 4.0 percent last month; This shocked economists, who had predicted a decline but were still far from the Bank of England’s 2 per cent target.
With a freezing cold start to 2024, bills, food prices and rents remain high. Food and energy bills remain above pre-pandemic levels, according to the Solution Foundation, but forecasts suggest both may remain stable or even begin to fall in late 2024.
Research from the Joseph Rowntree Foundation shows that more than 56 percent of low-income households reported not having enough money to eat or heat their home last year. Nearly half have had to cut back on gifts for loved ones, while 73 percent do not have a secure income to eat.
Below is a brief overview of the government financial support available to low-income families this February and the dates when recipients can expect their money to be paid:
Benefits of going out as usual
Usual benefits and pension payments will continue as normal in February and no public holidays will be planned to confuse delivery dates. These:
-
Universal Credit
-
state pension
-
retirement loan
-
Disability living assistance
-
Personal independence payment
-
Participation fee
-
carer’s allowance
-
Employment support allowance
-
income support
-
Job seeker’s allowance
For more information about how and when government benefits are paid, please visit the government website.
Next cost of living payment
Final living allowance payment of £299 payable Between February 6, 2024 and February 22, 2024. Individuals who receive certain benefits or tax credits are eligible for living expenses payments. These include: Universal Credit, Jobseeker’s Allowance, Employment Support Allowance, Income Support, Pension cCedit, Child Tax Credit and Working Tax Credit.
This payment follows several other payments throughout 2023:
-
£301 – First cost of living payment – issued between 25 April and 17 May (or 2 to 9 May for people who receive tax credits but no other low-income benefits)
-
£150 – Disability payment – awarded between 20 June and 4 July
-
£300 – Second living expenses payment – issued between 31 October and 19 November for most people
-
£300 – Pension payment – granted in November 2023
If you think you are entitled to these payments but have not yet received them you should contact the DWP.
Benefits of winter and cold weather
There are three main support plans available to people as cold weather sets in during the winter months:
Cold Weather Payments
The cold spell at the beginning of the year saw many postcodes qualify for the Cold Weather Payment. If you live in an area that experiences seven or more days of zero or below-zero temperatures, you’re eligible to receive £25 for every seven days of cold. In Scotland this scheme has recently been replaced by the Winter Heating Payment.
Hot Home Discount
If you’re on a low income and your energy costs are high, you could receive a one-off payment of £150 to help with your bills. You will also be eligible if you receive the Guarantee Credit element of the Pension Credit. The discount must be applied to energy bills between October 2023 and March 2024. The program works slightly differently for Scottish applicants.
If you are eligible, you will receive a letter in January 2024. If you don’t you should contact the DWP.Before February 29, 2024.
Winter Fuel Payment
If you are over state pension age (66 years old) and live in the UK you will automatically be eligible. The discount gives you between £250 and £600 to help pay your heating bills. If you already receive a government pension or most other benefits, you don’t need to apply. Otherwise, you may need to apply.
The discount money should be automatically transferred to your account in October or November. If you think you’re eligible but haven’t received payment, contact the DWP for further guidance.
Energy Price Cap: Will it rise or fall in 2024?
As of January 1 Energy Price Ceiling set at £1928Analysts at the reliable Cornwall Insight predict this figure will fall to £1,660 in April, fall again to £1,590 in July, then rise again to £1,639.97 in the final months of 2024.
The energy price cap is the maximum amount that energy suppliers can charge you for each unit of energy if you use a standard variable tariff. This includes most households.
The recent decline in prices reflects recent declines in wholesale energy costs (the amount energy companies pay for electricity and gas before supplying them to households). Although it is a significant drop from the record high rates of the last two years, the figure remains almost £1,000 per year above pre-pandemic levels.
JRF senior economist Rachelle Earwaker says: “Anyone who needs to use heating to avoid freezing temperatures this week [January 17] they can expect to pay 80% more than they did three years ago.
“Price increases have outpaced benefits increases; those increases won’t increase until April, and even then they won’t make up the difference.”
Will social benefits and pensions increase in 2024?
Social benefits and state pensions are scheduled to increase in April 2024.
In his statement in the autumn, Jeremy Hunt said that social benefits would be increased by 6.7 percent, which is the September inflation rate. He also announced that state pensions would be increased by approximately 8.5 percent over the same period.
But the Child Poverty Action Group (CPAG) warned that not raising the benefit cap would push more people over the threshold, which would mean a literal cut for many.
Have you been affected by the increase in inflation or do you have a story to share about your experiences during the cost of living crisis? Get in touch via email: albert.toth@independent.co.uk