by Inflation rates rose to 4.0 percent last month, alarming economists who had predicted a fall and still far from the Bank of England’s 2 percent target.
In addition to the start of the freeze until 2024, bills, food prices and rents are at an all-time high. Food and energy bills are still above pre-pandemic levels, according to the Resolve Foundation, but forecasts show that we may see both hold steady or even begin to fall later in 2024.
Research from the Joseph Rowntree Foundation shows that more than 56 per cent of low-income households reported not having enough money for food or heating their homes last year. Almost half have been forced to cut back on gifts to local people, as 73 percent are still without a secure income to eat.
Here’s a brief overview of the state financial support available to low-income families in February this year and the dates when benefit recipients can expect their money to be paid out:
Benefits going out as usual
The usual benefit and pension payments will be going out as usual in February, and there will be no bank holidays scheduled to throw up delivery dates. These are:
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Universal Credit
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State pension
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Pension credit
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Disability living allowance
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Personal independence payment
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Attendance allowance
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Carer’s allowance
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Employment support allowance
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Income support
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Jobseeker’s Allowance
For more information on how and when state benefits are paid, please visit the government website.
The next payment of the cost of living
The final living cost of £299 will be paid between 6 February 2024 and 22 February 2024. People who receive certain benefits or tax credits are eligible for the cost of living payment. These include: Universal Credit, Jobseeker’s Allowance, Employment Support Allowance, Income Support, Child Tax Credit, and Working Tax Credit.
This payment follows several others made during 2023:
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£301 – First living expenses payment – issued between 25 April and 17 May (or 2 to 9 May for people on tax credits but no other low income benefits)
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£150 – Disability payment – issued between 20 June and 4 July
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£300 – Second living expenses payment – issued between 31 October and 19 November for most people
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£300 – Pensioner payment – issued in November 2023
If you believe you are eligible for these payments but have not received them, you should contact the DWP.
Advantages of winter and cold weather
There are three main support schemes available to people as the cold weather hits in the winter months:
Cold Weather Payments
A cold start to the year resulted in many postcodes being eligible for the Cold Weather Payment. If you live in an area that experiences seven or more days of temperatures at or below zero, you are entitled to £25 for every seven cold days. In Scotland, this scheme has recently been replaced by the Winter Heating Payment.
Hot House Discount
If you are on a low income and have high energy costs, you could get a one-off payment of £150 to help with your bills. You will also qualify if you get the Guarantee Credit element of Pension Credit. The discount should be applied to yoru energy bills between October 2023 and March 2024. The scheme works slightly differently for Scottish applicants.
You should receive a letter in January 2024 if you could be eligible. If you don’t, you should contact the DWPbefore 29 February 2024.
Winter Fuel Payment
You will automatically qualify for this if you are over state pension age (aged 66) and live in the UK. The discount gives you between £250 and £600 to help pay your heating bills. You do not need to apply if you currently receive a state pension, or most other benefits. If you don’t, you may need to apply.
The discount money should have been automatically deposited into your account in October or November. If you believe you are eligible but have not received a payment, contact the DWP for further guidance.
Energy Price Cap: Will it go up or down in 2024?
From January 1, the Energy Price Cap is set at £1928up from £1834 at the end of 2023. Analysts at reliable Cornwall Insight predict this figure will fall in April to £1,660, and again in July to £1,590, before rising 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 are on a standard variable tariff. That includes most families.
The recent drop in prices is a reflection of recent reductions in wholesale energy costs – what energy firms pay for their electricity and gas before they deliver it to households. Although it is a significant slide from the record high rates of the past two years, the figure is still almost £1,000 a year above pre-pandemic levels.
JRF senior economist Rachelle Earwaker says: “Anyone who needs to use their heating to avoid freezing temperatures this week. [January 17] expect to pay over 80% more than they did three years ago.
“Price rises have outstripped benefit increases which won’t rise again until April, and even then won’t make up the difference.”
Are benefits and pensions going up in 2024?
Benefits and the state pension are due to increase in April 2024.
In his statement in autumn, Jeremy Hunt that benefits are going to increase the September inflation rate of 6.7 percent. He also announced that state pensions will rise by 8.5 per cent around the same time.
However, the Child Poverty Action Group (CPAG) has warned that if the cap on benefits is not raised, more people will fall over its threshold, which would mean a cut in real terms for many.
Have you been affected by the increase in inflation or have a story to share about your experience during the cost of living crisis? Contact by email: albert.toth@independent.co.uk
