Millions of people are finding it increasingly difficult to pay their bills, buy essentials or even maintain a secure home unless they rely on state benefits, as the cost of living crisis continues to rage unabated.
Inflation recently fell to a welcome 2.3% in May, just 0.3 percentage points above the Bank of England's target. It is the lowest inflation rate recorded since Rishi Sunak became Prime Minister in 2022, when it stood at 10.1%.
Probably boosted by this economic improvement, Mr Sunak announced that early general elections would be held on 4 July, as he had announced in May.
However, prices are still much higher than in previous years. A fall in inflation does not mean that prices are falling, but rather that they are rising less quickly.
The government's reports on low-income households paint a bleak picture, with absolute poverty rising for two years in a row, with almost a million more people in poverty in 2022/23 than in 2021/22.
In other news, the Trussell Trust said it had distributed 3.1 million emergency food parcels over the past year, the highest number in its history.
Given these tough economic conditions, here's a sneak preview of the financial help available to low-income families in June and important dates for benefit recipients.
Benefits Payments due in June
The benefits and pensions that follow will be paid as usual in June, as there are no bank holidays to disrupt the calendar:
- Universal Credit
- State Pension
- Pension Credit
- Child Benefit
- Disability Living Allowance
- Personal Independence Payment
- Attendance Allowance
- Carer’s Allowance
- Employment Support Allowance
- Income Support
- Jobseeker’s Allowance
Now, with six 'legacy benefits' being replaced by Universal Credit, the Department for Work and Pensions (DWP) have cautioned 500,000 benefit claimants to take action. For full details of benefit payments, visit the government website.
Household Support Fund
Chancellor Jeremy Hunt extended the Household Support Fund (HSF) for six months beyond the original deadline of 31 March in the Spring Budget. This fund provides local councils with resources to support vulnerable households.
Councils are free to allocate these funds, with some offering cash grants, supermarket vouchers or help with energy bills. You can find more details on your local council's website.
The End Furniture Poverty charity has a help finder tool to help you identify available support.
Additional Support
Free Childcare
Working parents in the UK are entitled to 30 hours of free childcare for children aged 3 to 4, and from 1 April this will be extended to 15 hours for 2-year-olds. To be eligible, applications must be confirmed online every three months.
Furthermore, working parents can claim tax-free childcare, receiving 20p for every 80p spent on childcare, up to a maximum of £500 a year.
Upcoming expansions include:
- September 2024: 15 hours of free childcare for children from nine months old.
- September 2025: 30 hours of free childcare for all children under five.
You can get more information and apply on the websites of the governments concerned.
Budgeting Advance Loans
Beneficiaries of Universal Credit who are facing financial emergencies can now take out interest-free budget advance loans, repayable over two years instead of one. The loan amounts are as follows:
- £348 for singles
- £464 for couples
- £812 for those with children
Council Tax Reduction
Individuals claiming specific benefits or meeting specific criteria may qualify for a Council Tax reduction of up to 100%. Local councils may also offer discretionary reductions to people facing severe financial hardship.
Applications can be made through your local council via the government website.
Energy Provider Assistance
Many energy suppliers, including Scottish Power, EDF, E.ON and Octopus, offer help to customers in difficulty. British Gas offers grants of up to £2,000 to customers of any energy supplier, subject to the eligibility criteria available on the British Gas Energy Trust website.
Charitable Grants
There is a range of charitable grants available for people in financial difficulty, suited to specific needs such as disability, illness, bereavement or unemployment. The charity Turn2us offers an online tool to search for applicable grants.