DWP Accelerates PIP Reviews Ahead of Major Reforms as Thousands Risk Payment Cuts

The Department for Work and Pensions (DWP) is pushing up Personal Independence Payment reviews to ensure claims are valid prior to social security reforms, which are expected to be included in Labour's initial budget at the end of October, as reported by BirminghamLive.

According to DWP data, 3.1 million PIP applications have been evaluated since 2016, including over 283,000 in the West Midlands. According to the findings, 53,289 people in the West Midlands had their PIP payments halted, while 22,951 were given notice that the amount would be reduced.

PIP is meant to help with the additional costs associated with disabilities or long-term health issues and provides up to £737 every four weeks, which equates to approximately £9,500 annually. Major adjustments have been proposed due to "unprecedented" requests for the benefit, which sees approximately 70,000 additional applications submitted each month.

Key Reasons PIP Payments Could Be Stopped or Reduced by the DWP

Officials are currently speeding up reviews after the previous government added extra cash to the system in the Spring Budget, allowing more new claims to be assessed on schedule and freeing up personnel to manage the stack of old cases that need to be reviewed. People's PIP benefits remain the same until the evaluation is completed, even if they have beyond the stipulated duration of their original claim.

Citizens Advice offers useful guidance to claimants and cautions that the DWP may terminate or lower your PIP due to the following reasons:

• You failed to submit a review form on time.
• You've completed your fixed-term PIP award.
• You had a medical evaluation, and the DWP determined that your condition has improved.
• You skipped a medical assessment.
• You informed the DWP about a shift in circumstances, and they concluded you can't claim PIP anymore.
• The DWP is reclaiming a benefit overpayment.
• You are accused of benefit fraud.
• You are under immigration controls.

If your PIP has been stopped due to the expiration of your fixed-term award, you have two options. If you were not sent a form to have your claim evaluated but still have medical difficulties, you should file a fresh claim for PIP as soon as you can. If you have a form and submitted it but didn't receive a response, call the DWP to confirm receipt and ask when they will be making a decision.

If you failed to return the review application on time, call the PIP hotline at 0800 121 4433 and request additional time to fill it and return it. If the DWP does not allow this, you must start a fresh claim.

You can also appeal the decision to terminate your PIP if you believe you had a legitimate cause for failing to return your form by the deadline.

You must request this 'mandatory reconsideration' of the decision on the appeal within one month, although Citizens Advice says it is still reasonable  to ask if it is within 13 months of the judgement, as long as you can justify your delayed response.

You can also request a mandatory reassessment if the DWP determines that your health is getting better and that your PIP payments will be reduced or stopped.

If you feel like your condition has not improved, ask your doctor or medical specialist for a letter that supports this up and include it to your documentation when explaining why the judgement was incorrect.

Claimants who skip a medical assessment might enquire whether the DWP will schedule another one. If they consent to another appointment and later decide you can still obtain PIP, they will reimburse you the amount you would have received if it had not stopped.

People are also advised that certain changes in circumstances can result in a PIP claim being abruptly terminated. This includes staying in a hospital, nursing home, or prison for more than four weeks or travelling abroad for longer than permitted.

If your immigration status changes and you are under immigration control, your PIP will be suspended. The DWP warns that the immigration status of your significant other or child may potentially have an impact on your benefits.

Pensioners Born Before September 22, 1958 Eligible for Winter Fuel Payment

Retired people on Pension Credit and other qualifying benefits are eligible for the Winter Fuel Payment. This year, however, not all pensioners will be able to get the money like they used to. Those eligible will receive the payment in November or around Christmas time.

The payment is meant to assist the most impoverished pensioners born before September 22, 1958 pay for their heating bills during the cold season. However, the Labour Government's decision to cut the payments for many has stirred indignation.

Pensioners Urged to Check their Eligibility for Pension Credit

Pensioners who do not receive Pension Credit are being urged to check if they qualify for it, as it represents a major qualifying benefit. As many as 900,000 people are not claiming Pension Credit even though they are eligible for it, this implies that many will not be able to claim the Winter Fuel Payment.

Age UK stated: “The Winter Fuel Payment is an annual payment to help you with heating costs during the colder months. The Government announced in July 2024 that, from this year onwards, to be eligible you must have reached state pension age and also receive a qualifying means-tested benefit.

“Winter Fuel Payment is an annual tax-free payment for households that include someone born on or before September 22, 1958 (for 2024-25) and, from 2024 onwards, receive Pension Credit, Universal Credit, Income Support, income-based Jobseeker’s Allowance or income-related Employment and Support Allowance, or an award of Child Tax Credit or Working Tax Credit of at least £26 for the tax year 2024-25.

“If you are over state pension age and receive a qualifying benefit, you could get £200 towards your bills. If you are over 80, you could get £300 to help with your bills in winter this year. Payments are made to the person claiming the benefit and are for the household.”

DWP to End Housing Benefit Payments for Thousands as Universal Credit Takes Over

Housing Benefit is one of the several benefits that are being substituted by Universal Credit (UC). Claimants have also been reminded that their benefits will end three months after receiving a migration notice in the mail, according to BirminghamLive.

For numerous people this will have happened in June, which means their benefits will end in September. These individuals have been warned that they should have submitted applications for Universal Credit, and that if they haven't yet, they should do so right away, or their benefits will be cut off.

Those who weren't given migration notices have been advised not to take any action at this time. However, it is critical that individuals check their posts and emails in case they failed to see it.

This constitutes the most significant upgrade of the benefits system in years. Housing Benefit among six benefits received by millions that will be taken out in exchange of Universal Credit.

Claimants Urged to Apply for Universal Credit or Risk Losing Legacy Benefits

The transfer of claimants will not happen automatically; instead, they must submit an application for the new benefit, which over 280,000 individuals have failed to do in recent years, accounting for roughly a quarter of the total. They have three months to resolve the issue, or their payments would be discontinued.

The following legacy benefits will be phased out:

• Working Tax Credit
• Child Tax Credit
• Housing Benefit
• Income Support
• Income-based Jobseeker's Allowance
• Income-related Employment
• Support Allowance

The Government states: "You need to move to Universal Credit if you’ve received a Migration Notice letter, as one or more of your benefits will be ending soon.

"To continue receiving financial support you must claim Universal Credit by the deadline date given in your letter. This is three months from the date the letter was sent out."

This comes ahead of a crucial vote as the Labour Party debates welfare cuts proposed by the Department for Work and Pensions (DWP). These cuts are expected to focus solely on Pension Credit recipients, a move that has sparked concern among members of Parliament.

Concerns Over Health and Welfare

Rachael Maskell, a Labour MP, voiced her apprehension in The Telegraph, particularly about the health risks for those impacted by these cuts. She remarked:

"We know that being cold leads to stroke, heart attacks, pneumonia, hyperthermia and so much more as the body wrestles to keep warm, and viruses prey on the frail."

She further warned that removing winter fuel payments for those in fuel poverty could result in a significant rise in preventable deaths during the colder months.

Internal Tensions and Growing Dissent

There is also growing unrest within the Labour Party. One MP expressed their dissatisfaction with the decision to maintain policies like the two-child benefit cap and the proposed cuts to winter fuel payments, saying:

"There's people right across the political divide who are very unhappy. They need to consider a u-turn over the winter fuel payments. I think this is going to ramp up, there's a lot of angry people out there."

Triple Lock and Government Support Measures

Commons leader Lucy Powell defended the government's position, attributing the tough decisions to the economic situation inherited from the previous administration. She noted that while the winter fuel payment is now subject to means testing, the government is committed to supporting pensioners through various measures:

• The Triple Lock increase, which raised state pensions by £900 this year.
• The Warm Home Discount, worth £150.
• The extension of the Household Support Fund.
• A nationwide campaign to ensure eligible pensioners receive Pension Credit.

Powell also highlighted that a parliamentary vote on the winter fuel payment is scheduled for next week, emphasizing the importance of debate and transparency:

"We are not afraid to have the debate about how we have got to where we have got to... because we respect Parliament and we respect doing things properly."

Significant Impact on Eligibility

The changes to the Winter Fuel Payment will drastically reduce the number of pensioners who qualify, from 11.4 million to just 1.5 million under the new criteria. This move is projected to save the Treasury around £1.4 billion this financial year, a key factor in the government's financial strategy.

How the Energy Discount Works

If you’re eligible, the £150 discount will be applied directly to your energy account by your supplier. For prepay meter customers, the discount is provided in the form of a top-up voucher. In Scotland, individuals on a low income must apply for the scheme, while in England and Wales, most eligible customers receive the discount automatically. It's important to note that this benefit does not extend to residents in Northern Ireland.

In addition to electricity discounts, some households may also apply the Warm Home Discount to their gas bill, provided they receive both gas and electricity services from the same supplier and meet the eligibility criteria.

Who Qualifies for the Warm Home Discount?

Eligibility for the £150 discount falls into two main categories:

• Core Group 1: In England, Wales, and Scotland, this includes households where either the recipient or their partner receives the Guarantee Credit portion of Pension Credit.
• Core Group 2: This includes low-income households in England and Wales that claim certain benefits and have high energy costs. Most people in this group automatically receive the discount.

Eligible benefits include:

• Universal Credit
• Income Support
• Income-related Employment and Support Allowance (ESA)
• Income-based Jobseeker’s Allowance (JSA)
• Housing Benefit
• Child and Working Tax Credits
• Pension Credit Savings Credit (PCSC)

While the exact qualifying week for this year's scheme hasn’t been confirmed yet, it is expected to be similar to last year's date, which was August 13, 2023.

Participating Energy Providers

Not all energy suppliers are part of the Warm Home Discount scheme, so it’s important to check whether your provider is participating. Below is a list of suppliers that were part of last year's program, with the likelihood that they will participate again this year:

• British Gas
• EDF
• E.ON Next
• Octopus Energy
• ScottishPower
• OVO
• Shell Energy Retail
• Utilita
• Utility Warehouse

This list includes over 25 providers, including smaller companies like Bulb Energy, Co-op Energy, and Good Energy. However, participation has yet to be officially confirmed for this year.

Next Steps

If you think you’re eligible for the Warm Home Discount, watch out for a letter from your energy provider in the coming weeks. For those in Scotland on a low income, applications may be required. It’s a good idea to confirm with your energy supplier whether they are part of this year’s scheme.

However, parents can still receive Child Benefit if their child continues with further education or starts an apprenticeship, provided they inform HMRC.

HMRC Clarifies Child Benefit Extension Rules and Deadline for Claims

HMRC usually sends a letter during the child’s final year of high school, which gives parents the chance to update their information and ensure their payments continue without interruption before the August 31 deadline.

HMRC reported reaching out to 1.5 million parents between May and July, urging them to renew their Child Benefit claims by August 31. By mid-August, over 522,000 parents had responded, leaving around one million still needing to contact HMRC. After concerns were raised in BirminghamLive’s Cost of Living Facebook group, the team at BirminghamLive sought clarification from HMRC on what happens if parents missed the deadline but later chose to keep their benefit application active.

A spokesman for HMRC told BirminghamLive: “August 31 is the date by which customers should update their claim online to ensure their payments will be extended before their next payment is due and therefore avoid facing any break in payments. It is still possible to extend after August 31 – if, for example, a teen is still deciding on their plans — but the customer's payments may cease in that time.

“As long as the parent extends within three months of the payments ceasing and the eligibility criteria are met, payments will be backdated.”

Child Benefit can be extended for children over 16 who are enrolled in full-time non-advanced education. This includes programs such as A-Levels or Scottish Highers, the International Baccalaureate, home education (if started before age 16 or after 16 with a special educational needs statement assessed by the local authority), T Levels, and NVQs up to level 3.

HMRC Updates Child Benefit Rules: Eligibility, Payments, and Renewal Process

To continue receiving Child Benefit, your child must be accepted into the course before turning 19. However, Child Benefit cannot be claimed if your child is pursuing advanced education, such as a university degree or a BTEC Higher National Certificate.

Approved training courses for Child Benefit must be unpaid and can include Foundation Apprenticeships, Traineeships, or the Jobs Growth Wales+ scheme in Wales; the No One Left Behind programme in Scotland; and PEACEPLUS Youth Programme 3.2, Training for Success, or Skills for Life and Work in Northern Ireland. Child Benefit is not available for courses that are part of a job contract and funded by an employer.

Child Benefit is issued every four weeks, typically on a Monday or Tuesday. Over the course of a year, the total amount is £1,331.20 for one child and £2,212.60 for two children. If a child continues their education or training for an additional two years after turning 16 without notifying HMRC, you could forfeit £2,662.40 for one child or £4,425.20 for two. For a three-year program, the potential loss would be £3,993.60 for one child or £6,637.80 for two.

When your child quits approved education or training, benefits will cease at the end of February, May 31, August 31, or November 30, whichever occurs first.

Parents can renew their Child Benefit claim online or through the HMRC app. Parents will require a Government Gateway user ID and password to access HMRC's online services. If they don't already have one, they can register on GOV.UK with simply their National Insurance number or postcode and two forms of identification.

Inflation hit the Bank of England’s target of 2% in June for the first time in three years but climbed to 2.2% in July. While this is a significant drop from the peak of 11.1% in October 2022, it merely indicates a slower pace of rising costs, not a return to previous price levels.

Hearing that inflation is low might be good news to many of the people, but that does not mean the costs affordability is improving, rather it is just stagnated at that particular rate.

With nearly a million more people living in absolute poverty last year compared to the previous one, and millions more on the brink, the financial outlook for many UK households remains bleak.

However, there is help available. Here’s what you need to know about the financial support you can get this September.

September 2024 Benefits and Payments

Standard Benefits

In September, regular benefits and pension payments will proceed without interruption, as there are no bank holidays. These include:

• 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

A report from Policy in Practice indicates that nearly £23 billion in benefits remain unclaimed annually. They provide a calculator to help determine potential entitlements. For detailed information on benefit payments, visit the government’s website.

Household Support Fund: Your Last Chance to Apply

Still struggling with household bills? The Household Support Fund (HSF), introduced in the spring Budget, has been extended until the end of September 2024. But don’t wait—local councils are in charge of distributing these funds, and they can choose how they allocate them. Whether it’s cash grants, supermarket vouchers, or help with energy bills, this could be a lifeline for your household.

To find out what assistance is available in your area, check with your local council or use the End Furniture Poverty charity’s assistance finder tool.

Other Financial Aid You Might Not Know About

There are other forms of help available that could make a real difference if you’re struggling to make ends meet:

• Budgeting advance loans: If you're on Universal Credit and face an emergency, you could borrow an advance of up to £812 (interest-free) to cover essential costs.
• Charitable grants: Depending on your situation—whether you’re disabled, a carer, unemployed, or more—you might qualify for a charitable grant. The charity Turn2us offers an online tool to help you find grants you may be eligible for.
• Energy provider assistance: Energy giants like British Gas, EDF, and Scottish Power offer help to customers struggling with their bills. British Gas even offers grants of up to £2,000 to customers of any energy provider.
• Council tax reduction: If you’re finding it hard to pay your council tax, you could be eligible for a discount of up to 100%. Contact your local council to see if you qualify for this essential support.

Don’t Miss Out on Free Childcare

Currently, working parents are entitled to 30 hours of free childcare for children aged 3 to 4. From 1 September, this measure will be extended to all children aged 9 months and over.

In order to take advantage of this, be sure to understand the process of applying before the formal onset of the September term, and also make sure to check if you are still eligible every three months.

Millions of Households at Risk of Losing Up to £8,400 in Benefits Due to Upcoming Deadlines

With the looming deadlines, millions of households risk losing up to £8,400 in benefits if they do not take immediate action. Families are therefore encouraged to claim these benefits immediately to ensure their continuous support in the coming years:

Child Benefit

Parents whose 16-19 year-old child is pursuing education or training have until Saturday to inform HM Revenue and Customs (HMRC) or risk having their Child Benefit payments cut.

This benefit is worth £102.40 per month for a single child and nearly £170 for two children, with an increase of around £67 per month for each additional child, and there is no limit to the number of children you can claim for until you go above the Benefit Cap.

Households with two children both in education, this can total £4,080 over two years. For households with two children who are both pursuing their studies for two years, this can amount to £4,080 within two years.

Even with just one child, 24 months of Child Benefit payments would total £2,457.60. If the child pursued a three-year course to the age of 19, the cost would be £3,686.40. For two children enrolled in a three-year study, the benefit can total £6,120. If this deadline is missed, thousands of pounds that could have been used to pay for educational fees could be lost.

Tax-Free Childcare

Households are also being urged to apply for a Tax-Free Childcare payout of up to £2,000 from HMRC by the deadline on Saturday, August 31.

Starting in September 2024, qualifying working parents with a child under the age of nine months will be entitled to 15 hours of childcare support. This is on top of the universal 15 hours, for a total of 30 hours of childcare when the child reaches the age of three or four.

This programme enables parents to get up to £2,000 annually per kid to help with childcare expenses, with the government contributing £2 for every £8 placed into an online account.

Winter Fuel Payment

The Winter Fuel Payment helps people with pensions deal with heating expenditures over the winter, offering from £100 to £300 to individuals who meet the eligibility requirements.

Formerly available to all UK residents over the state pension age, this year's payout is now limited to state pensioners who receive means-tested benefits such as Pension Credit. This reform, announced by Chancellor Rachel Reeves, will likely impact about 10 million people while saving the public purse £1.4 billion.

The qualifying week for the DWP's Winter Fuel Payment is September 16 through September 22. Those who are ineligible during this time will lose their winter benefits.

To receive the Winter Fuel Payment, people must check if they qualify for these benefits and submit an application before the qualifying week. Pension Credit is notably neglected, with an estimated 800,000 more people who are entitled but have not applied.

Adding together the highest sums, households in Britain might lose around £8,400 in benefits if they fail to apply before the deadlines for Child Benefit, Tax-Free Childcare, and Winter Fuel Payment.

Universal Credit Migration Notices Sent Out

DWP has caused a sweeping changeover system that affects almost 900,000 claimants. Starting Sep 2, whatever or those who are in receipt of this benefit and housing benefit will try to transition to universal credit. Both housed group who have existed in this category have existed in this category have been accelerated four years earlier than was scheduled initially. Also, Approx. 20,000 persons who are presently on means-tested jobseeker’s allowance (JSA) will also be paying this benefit.

This includes switching over one’s benefits to universal credit, which is compulsory at this point. The people will get official ‘migration notice’ letters, and they will only be given up to three months instead of six to change their benefits. If such actions are not taken within this period, then current payments put out will be terminated, which is why for so many families it is an urgent matter.

Financial Support to Bridge the Gap

In recognition of the possible risks that this change may pose in the finances of the DWP, several mitigating measures are available. Upon applying for Universal Credit, recipients of income based JSA, income related ESA, Income Support and Housing Benefit will be given two weeks worth of their old benefits. This measure is intended to fill the period with wait until the first payment of Universal Credit, which usually comes five weeks after application.

Further, it is also possible to request for an advance on Universal Credit which will be equal to the first payment and will be used to finance essential costs. Although, this advance is created to be quite low and will be repaid within the space of coming payments for the Universal Credit in pieces.

In aiding the shift away from the legacy benefits and into Universal Credit, transitional protection is one of the crucial features. In the event that the amount, which you are entitled to receive under the Universal Credit, is lower than your previous benefits package.

This type of protection makes certain that a person’s total income does not drop immediately or sharply. Rather, the person will see the cut imposed on them slowly and over a period of time in correspondence with the annual up rating of universal credit.

The Bigger Picture: A Nationwide Rollout

The current change forms part of the more extravagant plan to end all legacy benefits in the UK by the close of next year, claiming every person to be eligible for Universal Credit. Such benefits include Working Tax Credit, Child Tax Credit, Housing Benefit, Income Support, income-based JSA and income-related ESA among others. However, it would be worth mentioning other part-time/based benefits, for example Personal Independence Payment that is not going anywhere will still be present.

As for claims regarding cumulative allowance, New Style JSA and New Style ESA absenteeism stipends are not limited by the scope of Universal Credit and can be claimed together but will be off set within the Union Credit. Despite this, some constructive holders opt for these options given that they attract additional National Insurance credits coupled with more regular payments.

This year, DWP benefits increased by 6.7 %, possibly providing hundreds of pounds of more aid to eligible individuals.

DWP Adjusts Benefits: Key Increase for Pension Credit and Attendance Allowance

Each year, the government adjusts benefits from the Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC) based on the inflation rate from September of the previous year.

In September 2023, inflation was recorded at 6.7%, resulting in an increase in the value of some benefits by hundreds of pounds this year.

With more than 2.1 million retirees facing financial hardship in the UK, it is critical to ensure that loved ones receive the necessary help. Pension Credit and Attendance Allowance are greatly underclaimed, despite the fact that many more people are eligible.

These benefits can be valued up to £1,913 per month, which can significantly improve their financial circumstances.

Attendance Allowance Rates 2024

Attendance Allowance is provided by the DWP to those over the state pension age, which currently stands at 66 years old, who require assistance with personal care due to an illness or a disability.

Applicants must have a serious impairment or sickness that need personal care, and they must have required this assistance for at least the previous six months.

The benefit comes in two rates: lower and higher. The amount claimants get is determined by how much aid is required, not by how much help the person currently receives.

The updated weekly payment rates for 2024/25 are as follows:

• Higher rate: £108.55
• Lower rate: £72.65.

In 2024/2025, individuals could receive £3,777.80 annually at the lower rate or £5,644.60 annually at the higher rate. This mounts to monthly payments of £314.81 and £470.38 each.

People who already claim Personal Independence Payment (PIP), Adult Disability Payment (ADP), or the care component of Disability Living Allowance (DLA) will not be eligible to seek Attendance Allowance.

To file a claim, individuals must complete an Attendance Allowance form that clearly outlines the assistance they require and do not require.

People can obtain a form by calling the hotline at 0800 731 0122 or downloading it through the government website.

Pension Credit 2024

The Department for Work and Pensions (DWP) provides Pension Credit to pensioners on low income as a separate benefit from the state pension. It is offered to boost people's income and help them reach a more comfortable quality of life.

Those who receive this benefit can also access a wide variety of additional benefits, such as assistance with housing costs, council tax or energy bills.

Individuals can qualify for this benefit even if they have other income, savings, or own their home, but they must apply for it as it is not automatically paid.

The extra money increases people's weekly earnings to £218.15 if they are single, and to £332.95 if they have a spouse or partner.

Pension Credit can provide a monthly benefit of £945.32 to £1,442.78, based on the recipient's circumstances. When paired with the highest amount of Attendance Allowance, total monthly earnings could reach £1,913, yet neither of the benefits is subject to taxation.

Carers, severely disabled, or those in charge of a child or young person may be eligible for additional benefits, which can increase this sum even further.

You are most likely eligible for Pension Credit if your total weekly income is below £220. However, individuals with slightly higher earnings may still qualify.

Upcoming Payments to Support Households and Pensioners Amid Winter Budget Strain

According to the latest forecast, those on the standard tariff who pay by Direct Debit could see their annual bills rise from £1,568 to £1,762, an increase of £194.

The winter months usually strain household budgets more, and this year, there will be no cost of living payments. Additionally, around 10 million pensioner households will miss out on the annual Winter Fuel Payments, which typically range from £200 to £300.

This change comes after the UK Government decided to limit the payments to those over 66 who are on means-tested benefits like Pension Credit.

The Scottish Government has also implemented this change in eligibility and postponed the introduction of its replacement, the Pension Age Winter Heating Payment, until the winter of 2025/26.

Yet, there are six, different one-off payments to be given out to households, disabled individuals and people over State Pension age before the year's end. Most of these lump sums are meant to assist with climbing heating bills. Many benefit claimants are also set to get a ‘bonus’ and an additional payment for unpaid carers.

Winter Fuel Payment: £100-£300

Most of these payments are automatically provided in November or December, those eligible receive letters including information about the exact amount they will get before receiving their payment.

The change with the greatest impact on senior households this winter is the adjustment to the eligibility criteria for the one-off payment.

This payment ranges from £100 and £300, based on the recipient's age and home conditions. Notably, only those born before September 23, 1944 are eligible for the entire £300.

People must be over the age of 66 and receive a means-tested benefit, such as Pension Credit. Those over the State Pension age who get an income-related payment during the week of September 16-22, 2024, will get the payment automatically. This contribution is tax-free and does not affect any other benefits.

Eligible pensioner households will receive letters in October or November with details on how much Winter Fuel Payment they qualify for.

Child Winter Heating Payment: £251.50

The Child Winter Heating Payment of £251.50 supports Scottish households with disabled children or youngsters under the age of 19. This payment is meant to help families with extra winter costs.

Payments usually start in November, similar to last year. Qualifying families will receive a letter before the payment is sent.

To be eligible, families must be receiving certain disability benefits, such as the highest rate of Child Disability Payment, Disability Living Allowance for Children, or enhanced rates of Personal Independence Payment or Adult Disability Payment. Eligibility is based on being in receipt of these benefits during the week of September 16-22, 2024.

Winter Heating Payment: £58.75

According to Social Security Scotland, payments will be issued from mid-December, allowing the majority of qualifying families to receive the payment before the end of February 2025. If you qualify, you will get a letter from Social Security Scotland before they provide the payment.

This payment can only be claimed by people on an income-related benefit residing in Scotland and switched to the £25 Cold Weather Payment provided by the Department for Work and Pensions (DWP) two years ago. Unlike the DWP benefit, this one is not based on a prolonged period of cold weather in a specific region, but rather a yearly, one-off payment provided regardless of the temperature.

Warm Home Discount: £150 Paid to Energy Providers

The DWP hands this payment directly to energy suppliers. It is then added as credit to customers' accounts.

If you happen to be a credit customer the £150 will arrive on your electricity account and if you’re on Pay As You Go or Prepayment, a voucher that you can use to boost your meter will be sent to you.

The Warm Home Discount Scheme is meant to help those on a low income and on certain income-related benefits, including: Universal Credit or Pension Credit.

Carer Allowance Supplement: £288.60

These are usually paid automatically in December. Social Security Scotland will send out letters beforehand to confirm who may qualify for the payments.

The payments are administered by Social Security Scotland and made separately from Carer's Allowance. To qualify for the next payment in December, people need to be in receipt of either Carer’s Allowance from the DWP, or the newly launched Carer Support Payment from Social Security Scotland, on October 7, 2024.

Christmas Bonus: £10

This bonus is frequently provided automatically in early December. It is a one-off, tax-free £10 payment made to those who qualify for the State Pension or those who claim other benefits during the qualifying week.

No application is required in order to get the extra £10 as it automatically goes into the account where you usually get your State Pension or benefit payment.

These payments administered by Social Security Scotland are different from Carer's Allowance normal payment, currently at £81.90 per week. To receive an automatic payment next December, individuals must:

• Have been getting either Carer’s Allowance from Department for Work and Pensions (DWP)
• New Carer Support Payment introduced by Social Security Scotland as at 7th October 2024.

What this means is that if you provide not less than thirty-five hours of unpaid care every week and have not claimed the benefit, you could be losing more than four thousand two hundred and fifty pounds per annum.

Do I Qualify for Carer's Allowance?

You may be eligible for weekly payments of carers allowance amounting to £81.90 if your caring meets certain conditions. Payments can be made weekly or four-weekly in advance. Being related to or living together with such person is not essential in any way.

The person you care for must receive one of the following benefits:

• Personal Independence Payment (PIP) — daily living component
• Child Disability Payment — middle or highest care rate
• Adult Disability Payment — daily living component at standard or enhanced rate
• Disability Living Allowance (DLA) — middle or highest care rate
• Attendance Allowance
• Constant Attendance Allowance at or above the normal maximum rate with an Industrial Injuries Disablement Benefit
• Constant Attendance Allowance at the basic (full day) rate with a War Disablement Pension
• Armed Forces Independence Payment

If another person also cares for the same individual, only one can claim Carer’s Allowance.

The type of care you provide

You must provide at least 35 hours of care per week, which can include:

• Assisting with washing and cooking
• Accompanying the person to medical appointments
• Helping with household tasks, such as managing bills and shopping

Eligibility

According to guidance on GOV.UK, all the following conditions must apply:

• You are 16 or older
• You spend at least 35 hours a week caring for someone
• You have resided in Scotland for at least two of the past three years (exemptions apply for refugees or those with humanitarian protection)
• You are not in full-time education
• You are not studying for 21 hours a week or more
• You are not subject to immigration control
• Your earnings are £151 or less per week after deductions

How do I make a claim for Carer's Allowance?

Claims may be made through the GOV.UK website or by getting in touch with Carer’s Allowance Unit to ask for a form on 0800 731 0297.

Ensure you have:

• Your National Insurance number (and your partner’s if applicable)
• Bank or building society details
• Employment information and latest payslip if employed
• P45 if you’ve recently left a job
• Course details if studying
• Details of expenses, such as pension contributions or care costs for children or the disabled person while working

You will also need information about the person you care for, including:

• Their date of birth and address
• National Insurance number if they are 16 or older
• Disability Living Allowance reference if they are under 16

Carer Support Payment

Carer Support Payment is replacing the DWP-run Carer’s Allowance bit by bit. In pilot areas across Scotland, this benefit is provided by Social Security Scotland and only to new claimants. It has the same rate as Carer's Allowance (£81.90 weekly) and the same earnings limit of £151 presently.

Carer Support Payment rollout schedule

• Available now: Perth & Kinross, Dundee City, Na h-Eileanan Siar (Western Isles), North and South Lanarkshire, Angus
• 19th August: Fife, Aberdeen, Aberdeenshire, Moray, and North, East and South Ayrshire
• 4th November: Available across Scotland

DWP Update: Key Figures in Legacy Benefits Transition to Universal Credit

The Department for Work and Pensions (DWP) has released an update on the transition from older benefits, like tax credits, to Universal Credit.

Those receiving Income Support, Tax Credits with Housing Benefit, ESA (Income Based) with Child Tax Credit, or JSA have been sent letters informing them that they need to reapply for Universal Credit. If they fail to do so, their benefits will be discontinued.

From July 2022 to June 2024, the Department for Work and Pensions (DWP) mailed migration notices to 1,140,810 people in 771,810 households. Out of these, 623,310 people applied for Universal Credit (UC), and 232,800 households were granted transitional protection. Another 232,830 are still working through the transition to UC.

Unfortunately, 284,660 people who received migration notices didn’t apply for UC and had their legacy benefits stopped. This means that, as of the end of February 2024, 32% of those who got a migration notice didn’t make a UC claim and lost their benefits, while 68% did apply for UC.

Concerns Raised Over Universal Credit Transition

There’s been worry that some people, especially those who are vulnerable, might not understand that they need to act, leading them to miss out on important financial support. MPs in the House of Commons have raised concerns about this process, fearing that people could be losing money they’re entitled to because they have to make a new application.

The Institute for Fiscal Studies (IFS) looked into how the switch to UC is affecting about eight million people and found that some are potentially missing out on around £4,000 because of the transition.

Households with one adult over state pension age and one adult under it are struggling more under Universal Credit (UC) compared to the old  benefit system. The Institute for Fiscal Studies (IFS) found that these households are losing more than £4,000 a year because they’re now on UC instead of the more generous pension credit. About 70% of these households—around 180,000 in total—are facing this shortfall. Those with assets over £16,000 and self-employed people are also seeing significant losses under UC.

The report does show some positive aspects too. Couples with children are generally better off under UC. About 72% of them gain at least £200 a year, while only 22% lose that much. Working families and renters also tend to benefit more from UC, since the system reduces benefits more slowly as their earnings go up.

Earlier this year, it was mentioned in the House of Commons that people might be missing out on around £3,200 a year by not switching their benefits. It’s estimated that about a quarter of those affected haven’t made the switch yet.

DWP Announces Early Payments for August Due to Bank Holiday

If your payment was originally due on Monday, August 26, expect to get it in your bank account by Friday, August 23.

Payments are being made early this month to help people pay their bills on time and avoid problems caused by delays. Andy Wood, a money expert from Crypto Tax Degens, pointed out that bank holidays can mess up the usual payment schedule, which can be stressful for those who depend on these benefits.

It’s important that the DWP and HMRC clearly communicate any changes due to the holiday. For example, if you’re due to receive Child Benefit or Tax Credits on August 26, you’ll get them earlier, on August 23. Knowing this in advance helps people plan their finances and avoid issues.

Potential Impact of the Date Changes on Some Benefit Claimants

Wood also mentioned that these early payments are of great importance, especially to those on a tight income, and  those claiming benefits such as Universal Credit, PIP, and the State Pension. He said, “An early payment ensures that these individuals, many of whom live on tight budgets, can maintain their financial stability without interruption.”

The money expert highlighted how clear communication about the upcoming changes is essential, saying: “Bank holidays often disrupt the regular schedule of benefit payments, which can be concerning for those who rely on this income. Effective communication from DWP and HMRC is critical.”

For instance, Child Benefit and Tax Credits due on August 26 will be paid earlier, on August 23.

Since bank holidays are a regular occurrence, it’s good to understand their impact on benefit payments. Wood added, “With payments like Carer's Allowance, Disability Living Allowance, and Jobseeker's Allowance being issued ahead of time, beneficiaries are encouraged to plan their budgets with these early payments in mind, ensuring they can cover their essential needs during the holiday period.”

By June, inflation had at last hit the Bank of England’s target of 2%, marking a considerable drop from its peak of 11.1% in October 2022. However, this piece of news should not be seen as encouraging as it only implies that prices are increasing at a slower rate rather than going back to what they used to be previously.

Costs associated with living were promised to be dealt with by the newly-elected Labour government in its manifesto by dealing with foundational issues. The Secretary of State for Work and Pensions Liz Kendall has stated on her official website about serious intentions to eliminate “economic inactivity” through introducing ‘Back to Work’ initiative aimed at increasing employment opportunities.

August 2024 Benefits and Pensions Payments

This August, various benefits and pension payments will continue as usual, including:

• 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

Note that payments scheduled for the bank holiday on Monday, 26 August, will be disbursed the preceding working day, Friday, 23 August. For further details regarding state benefits, please consult the government’s official website.

Unclaimed Benefits and Additional Support

A new report from Policy in Practice stated up to £23bn every year is not claimed by individuals in benefits. They offer a handy calculator that helps people work out what they should receive. If you have any problems with the DWP, you can email albert.toth@independent.co.uk.

Household Support Fund

In March’s budget, Jeremy Hunt, ex Chancellor, extended the Household Support Fund (HSF) another six months. It’s a fund given to local authorities to help households at risk.

These funds can be used by councils for different purposes including cash grants, supermarket vouchers or assistance towards energy bills. Contact your local authority office for more information on this offer.

Other Available Assistance

• Budgeting Advance Loans: The government now offers interest-free budgeting advance loans lasting up to two years at no charge as a last resort for Universal Credit claimants facing financial emergencies. Eligibility limits are:
  • £348 for singles
  • £464 for couples
  • £812 for families with children
• Charitable Grants: Various charitable grants exist for those who are struggling financially, and these come with specific eligibility requirements. There is an online tool of charity Turn2us that allows you to find possible grants for which you may be qualified.
• Energy Provider Assistance: Many energy suppliers, including Scottish Power and British Gas, offer support for customers struggling with energy bills. British Gas, for example, provides grants of up to £2,000 under certain conditions.
• Council Tax Reduction: Individuals receiving specific benefits may qualify for a council tax reduction of up to 100%. Local councils can also offer discretionary reductions for those demonstrating severe financial hardship.

Childcare Support

In the UK presently, all employed parents are eligible for 30 hours of free childcare for three- and four-year-old children. By April 2024, this will be expanded to provide 15 hours of care for two-years old. Parents will have to apply online and confirm their eligibility every quarter year. They plan to make even more expansion, which includes:

• September 2024: 15 hours of free childcare for children from nine months.
• September 2025: 30 hours of free childcare for all children under five.

Collection Processes Under Fire as Council Tax Arrears Hit Historic High

Given the struggles taxpayers in the UK have to face, the head of debt at the Centre for Social Justice (CSJ), Matthew Greenwood, expressed his discontent especially when it comes to the current collection process, suggesting that it often fails both local authorities and taxpayers.

He argues: “The further steep rise in council tax arrears to a historic high of £6bn is yet more evidence that in many cases, the process of collection is failing local authorities and taxpayers alike.

“Some people won’t pay their council tax even though they have the money, and they should face the full force of the law. But our evidence shows that the majority of non-payers are unable to meet their commitments and the often harsh repayment methods used by many local authorities are making repayment rates worse, not better.

“Adopting a more proportionate collection system would drive up the amount of money brought in by councils in the long term. Enforcement is an invasive procedure by its nature, and putting the Enforcement Conduct Board on a statutory footing would ensure that vulnerable households have practical recourse to protection should things go wrong.”

Who Can Benefit from a Council Tax Reduction?

Each council is free to manage its own scheme. Your location along with your circumstances may determine what you qualify for.

Your circumstances for example may include your income, the number of children that you have, the benefits you receive and your residency status.

The new Labour Party government stated: "You could be eligible if you’re on a low income or claim benefits. Your bill could be reduced by up to 100 per cent. You can apply if you own your home, rent, are unemployed or working.

The government went on to clarify that what you can get may also depend on whether your children or other adult live with you.

HMRC Urged to Consider £5,000 Parental Allowance Proposal

The study suggests introducing a £5,000 child tax allowance, which could help 12.6 million working parents save around £2,000 per year, as reported by the Birmingham Live.

It recommends the initiation of a new tax-free earnings allowance designed specifically for parents, which would keep the Personal Allowance for most workers at £12,570 but raise it to £17,570 for parents.

Onwards had stated that the government should get inspired by other countries like France, which has a supportive tax policy for families.

Parenting Platform and Think Tank Highlight Financial Barriers and Tax Proposals

Justine Roberts, founder and chief executive of Mumsnet, remarked: “Whether or not to have children is a deeply personal decision, but it's one that's often influenced by financial factors. We know from the millions of conversations on Mumsnet that high childcare costs, the housing crisis, and the effect of the 'motherhood penalty' on women's careers all pose barriers to parenthood in the UK.

“This report is an important contribution to the conversation about how we tackle the financial barriers to parenthood, and reflects much of what we hear from our nine million users, particularly around low rates of statutory maternity and paternity pay, the effect of the high income benefit charge, and the importance of tackling the 'motherhood penalty' in the workplace.”

Phoebe Arslanagic-Little, who leads the New Deal for Parents at Onward, stated: “Our tax system fails to recognise either the particular financial burdens upon parents, or the tremendous contribution parents make by having and raising children.

“Britain is unusual among developed countries in its failure to support families through the tax system and this contributes to the financial barriers to parenthood the British people face.” They said: “Better supporting young families through a new child tax allowance will support people to have the families they want, of whatever shape and size, while simultaneously helping us to avert the negative socioeconomic effects of ageing society.”

The individuals concerned will be sent a letter in the post before the current fiscal year ends.

DWP Alerts Tax Credit Recipients to Transition to Universal Credit by Deadline

Tax Credits recipients have been alerted about upcoming the legacy benefit as they are moved to Universal Credit under the managed migration system. The DWP will send a Migration Notice to those affected who are being transitioned, as reported by the Birmingham Live.

These benefits will soon be replaced by Universal Credit: Tax credits: Working Tax Credit and Child Tax Credit, Housing Benefit, Income Support, Income-based Jobseeker’s Allowance (JSA) and Income-related Employment and Support Allowance (ESA).

Other benefits, including Personal Independence Payment (PIP), will remain unchanged. To keep on receiving financial assistance, it is crucial to claim Universal Credit by the deadline date mentioned in your letter. This is three months from the date the letter was issued.

What Should I Do if I Miss the Universal Credit Deadline?

If you fail to claim Universal Credit by the deadline date, you should reach out to the Universal Credit Migration Notice helpline as quickly as possible. You might prolong the time to make a claim if you have a valid reason, but you need to submit your request before the deadline.

Those who get a Migration Notice or Closure Notice may qualify for additional funds to help cover any benefit gaps arising from following the conclusion of their Tax Credit claims. The compensation is referred to as a transitional additional amount. For those moving to Universal Credit, this assistance is supplied as a transitional element.

In order to calculate how much you could get on Universal Credit, you can use a free and anonymous benefit calculator.

It's important to note that benefit calculators do not display any transitional protection (top-up payments) or deductions for a debt, so may not provide accurate results.

This comes after the last Conservative Party government decision to extend the Household Support Fund from the Department for Work and Pensions (DWP), as reported by the Birmingham Live.

UK Households Urged to Claim Cost of Living Payment Before Deadline

The Household Support Fund is designed to help low-income households cover their expenses with free cash and vouchers.

The City of Doncaster Council confirmed that the funding will be used to support working-age and pensioner households in the city who qualify for any of these benefits: Housing benefit, local council tax reduction, Universal Credit which comprises the housing element and income-based free school meals.

However, people who consider applying, have only a few weeks before the due date arrives on Friday, August 30, at 5pm.

The payment will be provided for qualifying households along with single people with no dependent children (children for whom you receive Child Benefit) who will get a single payment worth £50.

Doncaster Council Updates Cost of Living Payment Distribution

According to the local council, couples with no dependent children will get a single payment worth £70. Those with one dependent child will receive a one-off payment of £110, the council added, and households with two dependent children will get a single payment worth £170.

The local authority also confirmed that households with three dependent children will get a single payment of £230 and those with four or more dependent children will get a single payment of £290.

From 23 July 2024 all benefits are issued as a single one-off payment. Before this, payments to households with dependant children were provided in 2 halves.

If you qualify solely under means-tested free school meals criteria, you will get an award based on the number of qualifying children for income-based free school meals.

London Borough of Richmond Offers Up to £600 in Grants for Struggling UK Households

The Household Support Fund provides financial support to low-income families who can spend the money to buy food, pay bills or other essential items.

Funding is handed out to local councils, who then disperse it to those who need it the most in their areas. This implies that the amount that you can get depends on where you reside.

London Borough of Richmond on the Thames is distributing funding worth up to £600 to assist thousands of UK households.

If you successfully submit an application, you'll get a cash grant through a bank transfer to your account or get supermarket vouchers.

Here's how much qualifying families could get:

• Up to £300 for families with 1 or more adults.
• Up to £500 for families with 1 child.
• Up to £600 for families with 2 children or more.

If you consider applying, you must be at least eighteen years old, a resident of the Richmond borough and experiencing hardship due to the rising costs of food and energy, or remain affected by Covid-19. Other challenging circumstances that could qualify you for the grant include:

• Reduced income or job loss
• Trouble receiving benefits
• Inability to cover food and energy costs
• Additional spendings as a result of COVID-19

The council added that those without access to public funding are also qualified, especially if:

• They require community care.
• They have severe health issues.
• Their child’s wellbeing is at risk.

For more details, you can contact Citizens Advice Richmond at 080 82 78 78 73.

You can also fill out and apply for the award using the Citizens Advice online form.

Those who suffer from long-term health issues and disabilities can mail Richmond AID at advice@richmondaid.org.uk or call 020 3393 7011.

Can I Still Qualify if I don't reside in Richmond?

If you don't live in Richmond, you might still qualify for other grants, as the £421million fund has been dispatched across councils in England.

Each local authority sets its own eligibility criteria.

Certain councils began distributing cash grants back in April and have already exhausted their share.

The Household Support Fund has been extended multiple times since its launch back in October 2021, this implies that it could be extended again this time.

Cost of Living Support Available in Your Area

There are now many councils providing assistance through the HSF.

Tower Hamlets Council is distributing £100 in cost-of-living payments.

Meanwhile, Plymouth Council is issuing payments of up to £740.

If you would like to know if you are eligible for assistance, contact your local government.

The government's council locator tool can help you determine which council area you live in.

This payment used to be worth £300 but increased to £600 in recent years due to inflation. It is no longer given to all people who are over State Pension Age, just those claiming means tested benefit and Pension Credit. Pensioners can still take advantage of subsidy schemes that include these other discounts and freebies worth up to £11,600.

A Government spokesperson explained:

""This Government is committed to pensioners - protecting the triple lock, keeping energy bills low through our Warm Homes Plan, and cutting NHS waiting lists – bringing real stability to people’s lives. We said we would be honest with the public and, given the dire state of the public finances we have inherited, this government must take difficult decisions to fix the foundations of the economy."

Full List of Discounts and Freebies Available to Pensioners

Pension Credit — £3,900

Pension Credit funds older people on low incomes above state pension age; some 800,000 out of 2.5 million eligible Britons do not claim it. No minimum pension qualification is a requirement for this aid. This supplement helps old folks meet living expenses each day by topping up their allowance with £218.15 (£332.95 for couples).

This year’s qualifying week runs from Monday, 16 September to Sunday, 22 September, during which time people must claim Pension Credit in order that they may qualify for their Winter Fuel Payment.

Attendance Allowance — £5,644

Attendance allowance supports those who are over the state pension age and need extra support because of poor health or disability. It comes in two parts, either £72.65 or £108.55 per week depending on one’s own circumstances, which means that it would total up to £434.20 every four weeks or even £5,644.60 in a year.

The lower rate is for those who require help during the day or night, while the higher rate is payable when someone needs to help both day and night, or they have been diagnosed with a terminal illness.

National Insurance Cut — £1,394

When people reach state pension age, there is no need to pay any national insurance (NI) even if they are still working. This can result in significant savings being made. For example, an employee earning £30,000 per annum could save £1,394.40 in tax year 2024/25 assuming that the current NI threshold remains at£12,570 p.a.

Free Prescriptions — £119

Those aged below 16 years and above 59 years as well as full-time students who are between 16–18 years old are entitled to free prescriptions.

In addition, pregnant women; women who have just given birth having appeared at a doctor’s office within several months must also be exempted from this payment by their GP provided that such individuals receive certain benefits including:

• Income support
• Income-based jobseeker’s allowance
• Income-related employment and support allowance
• Pension Credit guarantee credit

Universal Credit claimants can also qualify if they earned no more than £435 (£935 if they feature child elements or limited work capabilities).

Free Bus Pass — £128

People who have reached the age of 66 and are eligible for a state pension will be given free bus travel. In London, residents are entitled to free transport on various modes in the city when they turn 60.

Free TV Licence — £169

Older persons aged over seventy-five years get a TV licence at zero charge, which is necessary for watching live television and streaming iPlayer service by BBC. Nevertheless, this must be accompanied by the receipt of Pension Credit.

Discounted Rail Fare — £142

Senior Railcard allows elderly people to obtain subsidized railway tickets; it costs £30 annually or £70 for three years. With this card, they can save one third on all rail journeys, with average annual savings for cardholders being equal to £96.

Council Tax — £2,065

Age, income, savings, household composition and council tax payments determine council tax discounts. Certain senior citizens may not pay anything depending on how life has treated them. The mean band D council tax in 2023/24 was £2065 showing an increase of 5.1% from the previous year’s rates.

Parents of children who have turned 16 and are continuing their studies must notify HMRC in order to continue receiving child benefit payments.

Parents Urged to Notify HMRC to Continue Child Benefit Payments

Parents may still qualify for Child Benefit payments until August, 31st after their child reaches the age of 16. Alternatively, the benefit can be extended until they reach the age of 20 if they remain in education or training.

When the child turns 16, HMRC will send you a letter inquiring about their education or training plans.

HMRC states: “If you fail to update your details in time, you may still be able to claim Child Benefit, but your payments might be late.”

Child Benefit payments stop on 31 August after a child turns 16, but parents may still be able to extend their claim if their child is enrolled in an approved education or training programme.

Parents are also offered the option to update their Child Benefit record online through the HMRC website or app. Myrtle Lloyd, HMRC's Director General for Customer Services, stated: “Child Benefit can provide financial support to families, so make sure you don't miss out if your teenager is still eligible.

“You can quickly and easily extend your claim online or via the HMRC app.”

HMRC Highlights Crucial Updates to Report for Child Benefit Recipients

Parents who qualify for child benefit payments can receive up to £102.40 every four weeks for their first or only child and £67.80 every four weeks, for each additional child.

This implies that a household with two qualifying children would get £2,212.60 a year in child benefit payments. If your child is aged between 18 and 20, and is pursuing approved education or training, you are required to complete the CH297 form.

The benefit cap will apply to all of your Child Benefit payments. Your other benefits may be lowered if you are subject to the cap, but you will still receive your full Child Benefit payments.

If there are any changes in your situation or your Child's remember to inform HMRC to avoid any disruptions in your payments.

If you have changed location and forgot to update your information, you might end up missing out on your benefits.

You should also let the authorities know if there are any changes to your immigration status or if you no longer have the right to stay in the UK.

If you already have a pre-settled status, you must notify the authorities if your relationship status changes. If you begin a relationship or if you are sentenced to prison for over eight weeks.

If the parents of the children pass away or change their name or gender, you must also notify HMRC.

Make sure to inform HMRC of any updates regarding your child's situation.

Introduced by the Conservative government in 2013, this limit on welfare support has resulted in some families having only £4 per person each day to live on.

Benefit Cap's Impact on Family Housing and Poverty

A study conducted by the London School of Economics reveals that many families throughout different areas find themselves trapped in rented accommodations that are not only costly but also of bad quality despite being often the most affordable option within their community.

Professor Ruth Patrick from the University of York, co-author of the report, stated: “Any government committed to driving down child poverty and giving children better lives must get rid of the two-child limit and the benefit cap.

“These two policies symbolise the austerity years and should have no place in a socially just country.”

Based on the gov.uk website, the benefit cap sets a limit, on the amount of benefits that you can receive. This rule applies to most individuals aged 16 and above who have not attained State Pension age yet.

Lison Garnham, Chief Executive of the Child Poverty Action Group, has urged the government to take action, stating: “The government's new child poverty taskforce must make an early commitment to abolishing this cruel policy. Overnight, that would reduce the depth of poverty for around 300,000 children.”

Addressing the results, a government spokesman supported its approach saying : “We have taken bold action to support lower-income families right away, by developing an ambitious strategy to reduce poverty, tackle inequality and make work pay including first steps announced today to commit to a genuine living wage for working people,” as reported by Birmingham Live.

“And to deliver the biggest boost to affordable housing in a generation, we will build the next generation of new towns and legislate so we can build the homes Britain needs.”

Key Insights on the Benefit Cap and Support Limits

The purpose of the benefit cap is to restrict the amount of government benefits that a person can receive.

It usually affects individuals aged 16 and older, who have not attained State Pension age. This limitation includes many benefits such, as Universal Credit, Bereavement Allowance, Child Benefit, Child Tax Credit and Employment and Support Allowance.

It additionally includes Housing Benefit, Incapacity Benefit, Income Support, Jobseeker's Allowance, Maternity Allowance, Severe Disablement Allowance, and Widowed Parent's Allowance.

People who were benefitting from Widowed Mother's Allowance or Widow's Pension before 9 April 2001 are also affected by this.

Second Payments must be made by July 31. This deadline affects many individuals, especially those who handle their own taxes, including freelancers and pensioners who are required to pay tax.

HMRC Warns Taxpayers: July 31 Deadline for Payments on Account to Avoid Late Fees

A tax expert cautioned that missing the deadline may lead to fees in the form of a late payment interest, which currently stands at a rate of 7.75%.

Andy Wood, a tax adviser from Tax Natives, stated: “Taxpayers should be acutely aware that the deadline for the second 'Payments on Account' is July 31, 2024. Missing this deadline could result in a costly 7.75% late payment interest charge.

“The 'Payments on Account' system is a strategic measure implemented by HMRC to assist taxpayers, particularly self-employed individuals, in managing their annual tax liabilities more effectively by spreading the payment burden.

“With the late payment interest rate set at 7.75%, it's crucial for taxpayers to meet the deadline to avoid unnecessary financial penalties.

“This serves as a strong incentive to ensure timely payment. Taxpayers who anticipate a lower tax bill than the previous year should take proactive steps by requesting a reduction in their 'Payments on Account' from HMRC. This can be done conveniently online or by post.

“In cases of overpayment, HMRC will issue a refund. Conversely, if there is an underpayment, the taxpayer will be subject to interest charges. It's essential to calculate your expected tax bill accurately to avoid these issues.

“As the deadline approaches, it's vital to remind friends and family about this important tax obligation. Ensuring everyone is aware of the 'Payments on Account' deadline can prevent unnecessary financial penalties.”

Who Needs to File an HMRC Self-Assessment Tax Return?

Taxpayers may need to complete a tax return if they:

• Are new to self-employment and have made over £1,000.
• Have several income sources.
• Have earned income that has not been taxed in, such as making money from producing content on the internet.
• Earn more than £100,000 a year.
• Receive revenue by renting out real estate.
• Recently joined a business partnership.
• Receive Child Benefit, and their or their partner's income exceeds £50,000.
• Get interest exceeding £10k from building societies and banks.
• Receive dividends exceeding £10,000.
• Are required to pay Capital Gains Tax.
• Work for themselves and make under £1,000, but intend to pay Class 2 National Insurance Contributions in order to keep receiving the State Pension and other benefits.

This retroactive payment is offered to new applicants for Universal Credit if there are particular issues that delay their application process.

Transition to Universal Credit: Updated Guidance for Benefit Claimants

Since more people are being moved from older benefit schemes to Universal Credit, updated guidance has been released. Those receiving tax credits were told to make the transition by the end of March.

Since then, those on Housing Benefit and Income Support started receiving letters asking them to switch to Universal Credit.

This month (July), the focus is on people on income-related Employment and Support Allowance (ESA) with Child Tax Credit.

Individuals on income-based Jobseeker's Allowance or income-related ESA, either alone or with Housing Benefit, are expected to transition in September.

People have three months to file a new Universal Credit claim before their current payments are revoked.

To facilitate the transitioning process between old and new payments, for those receiving income-based Jobseeker's JSA, income-related ESA, Income Support, or Housing Benefit a two-week extension is available

This implies that they will continue to get these benefits for two weeks following their application for Universal Credit, which will help them get through the five-week wait for their first UC payment, according to Birmingham Live.

Eligibility for Additional Month of Universal Credit Payments Explained

People who are having trouble with the application process or are facing transitional concerns may be eligible for an additional month of Universal Credit, according to the Department for Work and Pensions (DWP).

In the latest update concerning backdated Universal Credit claims, the authorities outlined: “You may be able to backdate your claim if you or your partner were delayed in making a claim through no fault of your own. Claims can be backdated for up to one calendar month from the date of your claim.”

Backdating can be approved in circumstances where people who have disabilities or medical conditions, including mental disorders, were unable to file their claims on time, or in situations where technical issues with the online Universal Credit submission process hindered prompt claiming, but the issue was resolved once the system was restored.

Additional reasons for requesting retrospective Universal Credit payments include situations in which a recipient had been moving from another benefit but was not informed of its discontinuation, or situations in which a joint claim was originally submitted with a partner but was later separated, resulting in a single person claim. Furthermore, cases where DWP staff misinformation resulted in delays may also qualify for back pay.

Additional documentation may be needed when applying for backdated payments. Those in need of financial assistance while waiting for their first Universal Credit payout can obtain an advance through the Universal Credit website.

This advance normally corresponds to the estimated amount of the first payment and must be repaid with deductions from future Universal Credit payments.

After applying for Universal Credit, a one-month review period begins, during which your financial situation is evaluated to determine how much you are eligible to receive.

Your benefit is deposited into your account seven days later, and this date becomes the usual Universal Credit payment date.

Tax Credit Deadline

There is an important deadline for tax credits. HMRC has issued reminders to some 730,000 households that they must report any changes affecting their payments. The essentials are:

• Working Tax Credits: The basic element is worth £2,435.
• Child Tax Credits: Valued at £3,455, with additional amounts for single parents or those with disabilities.

Tax credits have to be renewed every year. The renewal packs were supposed to reach you by June 20th, and you should respond by July 31st. Inform HMRC on the following points:

• Income details for the last tax year (April 6, 2023, to April 5, 2024).
• Changes in working hours, childcare costs, or children's education status.

If a person provides wrong details to HMRC, they may get fined, from £300 to more substantial penalties.

Moving to Universal Credit

“Managed migration” involves moving two million people from previous benefits onto Universal Credit by the government. Here’s what you need to know:

• Action Required: You have three months from receiving your migration letter to move to Universal Credit.
• Consequences: Missing the deadline will stop your benefit entitlement. Delayed claims result in the loss of transitional protection.
• Current Focus:
  • 120,000 households on tax credits with housing benefit received migration letters in April.
  • 110,000 income support claimants also received their letters.

For example, in over 31,000 households this led to financial losses of around £4,130 per year after failing to act on these notices of migration.

Early Benefit Payments

In the coming month, due to the August bank holiday, several thousand people are to receive their benefits early. When payment dates coincide with a bank holiday or weekend, it is made earlier on the previous working day.

For this reason, the benefit due on 26th August will be paid on 23rd August. Also, those for 24th and 25th will come in on that same date.

The department of work and pensions (DWP) and HMRC have confirmed that among these, the following benefits will be paying out in August:

• Affected Benefits:
  • Attendance Allowance
  • Carer's Allowance
  • Disability Living Allowance
  • Income Support
  • Jobseeker's Allowance
  • Pension Credit
  • Personal Independence Payment (PIP)
  • State Pension
  • Universal Credit
  • Child Benefit (paid by HMRC)
  • Tax Credits (paid by HMRC)

If you don’t get your payment on 23rd of august, contact DWP. You could as well register a complaint if there is any problem concerning wrong payments.

Child Benefit Deadline

In order to avoid losing up to £1,331 in child benefit payments, parents must act within weeks. HMRC has been sending letters to parents about their teenagers asking them for information about their future education plans.

• Annual Value:
  • £1,331 for the first child.
  • £881 for each additional child.

Parents should notify HMRC by 31st of August if their child is staying in school.

• Education Requirements: Benefits continue up to age 19 if the child is enrolled in:
  • A-levels or Scottish Highers.
  • International Baccalaureate.
  • Home education (started before 16 or assessed by the local authority).
  • T levels or NVQs (up to level 3).

Unpaid approved training courses also apply for continued benefits in Wales, Northern Ireland, and Scotland.

The child benefit will also go on for any children who are in an approved unpaid training course e.g. Foundation Apprenticeships, Traineeships, or the Jobs Growth Wales+ scheme in Wales; PEACEPLUS Youth Programme 3.2, Training for Success, or Skills for Life and Work in Northern Ireland; and Employability Fund programme or No One Left Behind in Scotland.

This translates to £25.60 every week for the first child and £16.95 per additional child that a family has. Parents must write back to HMRC by September if they want to keep getting these benefits.

UK Labour to Focus on Overcoming Employment Barriers

During a speech in Barnsley, Liz Kendall, the freshly appointed Secretary of State for work and pensions, emphasized the need to give greater attention to the factors preventing people from finding a job. This includes transport, childcare, skills, and health issues.

Labour's long term goal is to reach an 80% employment rate, which would surpass the employment rates of any other G7 developed nations. Nearly 11 million people, or about 25% of the working-age population in the UK, are currently out of work.

Approximately 9.4 million of these individuals are considered  “economically inactive” rather than “unemployed” as they are neither searching for work nor ready to take a job. However, over 1.7 million indicate they want to work, but cite sickness or caring as the main reasons they gave up the search for employment.

While the majority of leading economies' workforces have bounced back from the COVID-19 pandemic, the UK is still far behind, with more people out of work compared to 2019.

Ms Kendall stated that with the previous Conservative government, the Department for Work and Pensions (DWP) had concentrated all of its efforts “almost entirely on the benefit system”, turning job centres into “a benefit monitoring service”.

“They paid nowhere near enough attention to the wider issues like health, skills, childcare, transport, that play such a huge role in determining whether you can get work, stay in work, and get on in your work,” she declared. She went on to say: “Under my political leadership, the DWP will shift from being a department for welfare to being a department for work.”

Major Overhaul Planned for UK Jobcentres

The Secretary of State pledged a “major overhaul” of job centres, integrating Jobcentre Plus and with National Career Service to prioritize assisting people join the workforce, rather than processing benefit claims. The former Conservative government had suggested implementing stricter sanctions for people capable of work who declined jobs offers, along with additional enhanced employment assistance.

Nevertheless, Ms Kendall contested the former government's “divisive rhetoric about strivers versus scroungers” as it failed to get people back into work. She added that the “vast majority” of those not working struggle to find a job.

Conservative shadow work and pensions secretary Mel Stride said: “Since 2010 our reforms have successfully focused on getting people into work and off welfare with more than four million people in work.”

“Rather than just spouting out aspirational targets, Labour needs to set out a clear plan for how they are going to get more people into employment and reform welfare.”

However, Ms Kendall asserted: “We will give local places the responsibility and resources to design a joined up, health, work and skills offer that's right for local people.”

HMRC to Scrutinize Businesses Using Unapproved Childcare Intermediaries

Certain businesses have been using intermediaries to secure childcare options that don't meet with the government standards, but HMRC will scrutinize employers who might have improperly used a government benefit to cut childcare costs for employees.

Businesses that enrol in the childcare scheme are required to offer a workplace nursery for parents either at their location or through an external agreement with a childcare provider.

Despite these requirements, some businesses are engaging intermediaries to arrange childcare places with providers in ways that do not meet the scheme's compliance standards.

Employers Warned of Potential Tax Liabilities Over Childcare Schemes

Employers are required to be “wholly or partly responsible for the financing and managing of the provision” of childcare to be eligible for the benefit. Susan Ball, employer tax partner at RSM UK, stated: “If a nursery scheme should have been taxable and the employer has not declared this as a benefit in kind, on their P11D form or via payroll, HMRC can go back up to six years to check whether tax exemption has been claimed when it shouldn’t have been.

“There may be interest and penalties going back several years, so the impact of this could be significant for many. This has implications for employees too, who will not be happy if they are landed with an unexpected tax bill because their employer doesn’t pick up the liability.”

Ms Ball went on to say: “Employers who offer such schemes should act now to review their position. Those that have incorrectly claimed the tax exemption should make a voluntary disclosure to HMRC as soon as possible. The new Labour government may want to consider what additional support they could offer to parents.

“One option could be reopening the childcare voucher scheme to new applicants, which could be done fairly rapidly if they wanted to. Any support with childcare costs does enable people to get back into work or increase their hours which would boost productivity, a key aim of this government.”

Benefits and Savings Available to State Pensioners

Recent guidance from the Department for Work and Pensions (DWP) advises state pensioners on how to boost their benefits. These include a benefit increase which could exceed £100 a week and a Pension Credit Shift amounting to £75 a week.

Additionally, pensioners can benefit from a variety of transport changes along with National Insurance Amendments.

Presently, the State Pension age is fixed at 66 years old for both genders, but this will slowly increase starting 6 May 2026. Two different systems have been in place since April 2016: the old State Pension also known as basic State Pension and the new State Pension.

The system you are subject to is determined by whether you attained State Pension age before or after the new system was implemented.

Benefit Boost: £108.55 per Week

If you receive certain benefits, you may qualify for additional financial support which could amount to £5,644.60 annually. You can be eligible if you've attained state pension age and have a physical or mental condition, or both, or if you suffer from a severe disability and need help with self-care or supervision.

In order to submit a claim, you must live in Great Britain, have resided in Great Britain for a minimum of two of the past three years, and regularly reside in the UK, Ireland, Isle of Man or the Channel Islands.

Additionally, you must not be subject to immigration control, except if you are a sponsored immigrant and should not be receiving Disability Living Allowance (DLA), Adult Disability Payment (ADP) or Personal Independence Payment (PIP).

Pension Credit: £75 per Week

Pension Credit is split into two parts. The standard minimum guarantee, which is set to increase, requires your income to be below specific thresholds. Even if your income is slightly higher, you might still qualify if you're severely disabled, a carer, or have housing costs like a mortgage.

If you reached State Pension age before April 6, 2016, or have savings or another pension, you may qualify for the savings credit part of Pension Credit, which is also expected to increase from April.

Additional payments are available if you're a carer, severely disabled, or responsible for a child or young person.

You can submit an application for Pension Credit online via the GOV. UK website, by calling 0800 99 1234. You can also complete and submit a paper application form.

National Insurance reduction: £26.81 per Week

After reaching State Pension age, you will no longer be required to pay Class 1 National Insurance contributions if you are employed. If you're a business owner you will stop paying Class 4 National Insurance from April 6, which marks the start of the start of the tax year, after you attain State Pension age.

Last February, Chancellor Jeremy Hunt announced a 2% cut to National Insurance (NI) contributions for both employees and business owners. This represented the second reduction brought to NI in less than six months, raising speculation that the government may be contemplating eliminating the tax altogether.

Free Prescriptions: £2.28 per Week

Anyone aged 60 or over are can be eligible for up to £119 worth of free prescriptions per year. For people under the age of 60, the NHS grants prescription prepayment certificates for 3 or 12 months, which can help cover all prescriptions during that period.

Once you reach 60, you can also qualify for a free NHS vision test. Make sure you notify your optician when you attain this age.

Free Bus Pass: £2.46 per Week

In the UK, regardless of your gender, an older's person bus pass is granted to you when you reach the state pension age, which is currently fixed at 66.

This pass grants you free travel during off-peak hours if you reside in the West Midlands, you can use your pass on buses from 9.30am until 11.59pm. In addition, free travel is granted.

If you have to travel before 9.30am, you can still use the £1.50 single fare on National Express West Midlands buses. You will just need to show your travel pass to the driver and ask for a £1.50 single ticket.

Discounted Rail Fare: £2.73 per Week

The Senior Railcard is designed for people aged 60 and over, offering a third off train fares throughout Great Britain. It costs £30, and if you use it a few times, it quickly pays for itself, equivalent to just £2.50 per month if bought annually.

Alternatively, you can get a three-year Railcard for £70, saving £20 compared to buying three separate one-year cards.

For London residents aged 60 or over, the 60+ Oyster card provides free travel on Transport for London services and most National Rail services within the city. You can find more details about eligibility, benefits, and how to apply for the 60+ Oyster photocard online.

Cold Weather Payment: £25

You'll get a £25 payment when the temperature in your area stays at zero degrees Celsius or colder for seven days in a row. This payment arrives within 14 working days after each stretch of freezing weather. And if the cold persists, you can receive several £25 Cold Weather Payments.

Winter Payment Boost for Young PIP and ADP Recipients

The Child Winter Heating Payment will be increased by £15.80 from the last £235.70 which benefited nearly 29,000 families last year.

This financial support is provided to help households with children manage increased expenses during winter. Payments are expected to land in bank accounts in November, similar to the previous year.

The £251.50 payment is provided to families of children and youngsters up to the age of 19 who receive specific qualifying disability benefits.

These qualifying benefits are the highest rate of the care component of Child Disability Payment or Disability Living Allowance for Children.

The payment is also handed to those getting the enhanced rate of the daily living component of Personal Independence Payment (PIP), or the enhanced rate of the daily living component of Adult Disability Payment (ADP).

To qualify for the lump sum, people must be claiming one of the above-mentioned benefits during the qualifying week, which runs from Monday, September 16th to Sunday, September 22nd.

Other important points to know about the payment:

• The £251.50 payment is provided for each qualifying child or young person, not per family.
• Families with multiple eligible children will receive a separate payment.
• If a backdated award falls within the eligibility week in September, it will also be paid.
• The payment will be deposited into the same account where the qualifying benefit is received.

No separate application is required for those who already receive the qualifying benefit. However, in some cases, some people may need to submit an application.

Social Security Scotland manages and delivers the payments. Qualifying families will get a letter close to the payment date confirming their entitlement.

Benefits that Qualify for Child Winter Heating Payment

Young people under 19 receiving one of the benefits below for at least one day during the September qualifying week will get the £251.50 lump sum.

Qualifying benefits:

• Adult Disability Payment: enhanced rate of the daily living component.
• Child Disability Payment: highest rate of the care component.
• Disability Living Allowance for children: highest rate of the care component.
• Personal Independence Payment (PIP):  enhanced daily living component.

Guidance provided by the Scottish Government explains that people are not required to show receipts or evidence of how their money is spent.

If a child or youngster gets a qualifying benefit but is not in Scotland during the qualifying week, they might still be eligible if they reside in certain European Economic Area (EEA) countries or Switzerland. Or can prove they have a genuine and sufficient connection to the country.

Motability Updates: £750 New Vehicle Payment and Scheme Details

Recent data from Motability indicates that there are approximately 690,000 customers all over the UK, with about 10% of the 70,000 recipients residing in Scotland.

The scheme is accessible to those who receive War Pensioners' Mobility Supplement, Armed Forces Independence Payment, and people getting the higher mobility rate of Personal Independence Payment (PIP) or Disability Living Allowance (DLA). Additionally, it is accessible to those living in Scotland who receive the higher rate mobility component of the Child Disability Payment (CDP) or the enhanced rate mobility part of the Adult Disability Payment (ADP).

Nevertheless, many individuals who have been receiving higher rates of qualifying benefits for a long period, as well as new claimants, may be missing out on a £750 payment available to those renting a vehicle for the first time.

It's referred to as the New Vehicle Payment for cars and Wheelchair Accessible Vehicles and is limited to one per customer.

People have the option to either send the money to the dealer to assist with an Advance Payment, or receive the full amount themselves after obtaining their vehicle.

When leasing a vehicle through the Motability Scheme, known in Scotland as the Accessible Vehicles and Equipment Scheme, certain vehicles may require an advance payment.

It’s crucial to know that these two schemes are ruled by Motability Operations Ltd and adhere to similar eligibility guidelines.

It’s referred to as the New Product Payment for scooters and powered wheelchairs, and it’s £100 instead. People can receive payment after their new equipment has been received.

However, Motability states that people cannot receive both the New Vehicle Payment and the New Product Payment simultaneously.

Motability has recently updated the July to September 2024 price list, and is now offering a range of more than 900 cars, including over 65 models that do not require an advance payment. This allows recipients to receive the £750 New Vehicle Payment.

People can pick a lease known as a variable lease that utilizes their entire mobility allowance. For more information regarding the latest price list updates, visit the Motability website.

Electric Vehicles

New guidance available on the website includes: “As manufacturers move their attention to electric vehicles (EVs), we’re able to bring more choice to the Scheme. Their change in focus means that some petrol and many diesel models are being phased out.

“We’re starting to see prices increase for those that continue to be available. But we’re still able to offer more than 115 cars with no Advance Payment, including popular models such as the Fiat 600 (down from £1,495) and Dacia Duster (down from £995).”

Certain electric cars in the updated list include models with Advance Payments below £1,000.

Other Aspects Covered by the Lease

The full package that comes with your new vehicle includes:

• Full RAC breakdown assistance
• 60,000 mileage allowance over three years, or 100,000 for WAV (Wheelchair Accessible Vehicles)
• Insurance
• Kwik Fit replacement tyres
• Many adaptations at no extra cost
• Servicing and maintenance
• Three drivers
• Windscreen repair or replacement
• Yearly tax

Understanding the New Scheme

Social Security Scotland guidelines include: “When you lease a vehicle through the scheme, it will be with our authorised provider, Motability Operations Ltd.”

Social Security Scotland can assist with covering the lease by using the full amount or part of either:

• The higher mobility rate of Child Disability Payment: £75.75
• The enhanced mobility rate of Adult Disability Payment: £75.75

Steps to Lease a Vehicle for Your Personal Use

If you meet the criteria listed below, you can apply to lease a vehicle yourself:

• You receive the higher mobility rate of Child Disability Payment or the enhanced mobility rate of Adult Disability Payment
• You are 16 or older
• You can handle your own payments

Applying to Lease a Vehicle for Someone Else

Social Security Scotland also states that you can apply to lease a vehicle for someone else.

This might be possible if:

• You are a parent or legal guardian of a child who receive the higher rate of the mobility component of Child Disability Payment.
• You have been selected as an appointee for someone who receives the higher rate of the mobility component of Child Disability Payment or enhanced rate of the mobility component of Adult Disability Payment.

How to Submit an Application

In order to apply for a vehicle lease using the scheme, visit the Motability website, choose a vehicle, then find a leadership.

In a big economic reversal, inflation eventually hit the Bank of England’s 2% target in June for the first time in three years, down from its peak of 11.1% in October 2022. Although this reduction is an encouraging sign, it doesn’t mean a fall back to previous price levels at all but just a decreased pace of increase.

The new Labour government’s manifesto commits itself to addressing this cost of living crisis by tackling its root causes. Liz Kendall, the Secretary of State for Work and Pensions, announced that the Department for Work and Pensions (DWP) will be concentrating on reducing “economic inactivity” and increasing employment through their new initiative ‘Back to Work’.

Here is an overview of financial support for low-income families available this August, as well as important dates for benefits recipients.

Cost of Living Payments: Benefits and Pensions Due in August 2024

Regular Benefit Payments

During August regular benefit and pension payments will be made as normal except for one day which is Monday 26 August, because it is a bank holiday. All payments due on this day will actually be paid on Friday 23 August instead, as it would be the last working day before then. The benefits include:

• 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

According to Policy in Practice report, about £19bn of benefits remain unclaimed annually. They provide a tool that can be used to estimate your possible entitlement.

Household Support Fund (HSF)

The spring budget extended the Household Support Fund (HSF) by an additional six months beyond the original 31 March deadline. HSF enables local authorities to assist vulnerable households through things like cash grants, supermarket vouchers and assistance with heating bills etc. You can find this support from your local council’s website or End Furniture Poverty’s help finder tool.

Other Sources of Help Available

Budgeting Advance Loans

For those on Universal Credit who experience financial emergencies, the government is offering budgeting advance loans that are interest-free. The repayment period has been pushed out from twelve months to two years. The amounts for these advances are:

• £348 for single individuals
• £464 for couples
• £812 for those with children

Charitable Grants

Several charitable grants exist for people who are in financial difficulty such as the disabled, ill, carers, bereaved, unemployed or students. These grants usually have specific eligibility criteria and offer limited funds. Individual can research available grants at Turn2us charity online tool.

Energy Provider Assistance

A number of energy firms including Scottish Power EDF E.ON and Octopus offer help for customers struggling with their bills. British Gas provides grants up to £2,000 for any energy provider customers if they meet certain requirements, which can be applied for via the British Gas Energy Trust website.

Council Tax Reduction

A complete exemption for council tax may be offered to those who meet certain criteria or qualify for particular kinds of assistance. Local councils can also offer discretionary discounts to individuals who are in dire need of financial support. To apply, one has to visit the government’s website.

Free Childcare

Currently, working parents in the UK receive 30 hours of free child care per week for children aged between three and four. Starting from 1 April, this will increase to 15 hours of free child care for two-year-olds as well.

Applications must be made online, with eligibility reviewed every three months. Also, working parents can apply for tax-free childcare where they get back 20p in every £0.80 spent on childcare up to a maximum of £500 per annum.

Future 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.

There is a high possibility that some major changes will be done by the new government regarding the benefits and pensions, but it would take years before being completely implemented among its citizens. Planned changes often go through consultation processes, which could last several months or even years.

Benefit Payments Rescheduled Ahead of August Bank Holiday

HMRC has announced that Tax Credits payments due on Monday, August 5, will be issued early on Friday, August 2. Similarly, Social Security Scotland payments due on the same date will also be made early, though no official confirmation has been provided yet. The next bank holiday is on Monday, August 26.

Despite being observed only in England and Wales, the bank holiday could affect people in Scotland expecting payments on that date.

According to HMRC, Child Benefit and Tax Credits initially scheduled for this date will arrive in bank accounts on Friday, August 23. The DWP is expected to announce the same changes to scheduled payments for State Pension and other benefits including Personal Independence Payment (PIP), Jobseeker's Allowance (JSA), and Universal Credit, as reported by the Daily Record.

This is mainly due to the fact that State Pension and DWP benefits are generally issued when offices and phone lines are available. On official bank holidays, when the lines of communication become unavailable, payments are issued on the first working day right before the affected date.

Revised HMRC Payment Dates for August

Payments from HMRC initially scheduled for August 5 or 26 may be made early for some people.

Tax Credits:

• Payments scheduled for Monday, August 5: will be issued on Friday, August 2 for individuals residing in Scotland.
• Payments scheduled for Monday, August 26: will be made on Friday, August 23 for anyone living in Scotland, England, Wales, and Northern Ireland.

Child Benefit:

• Payments scheduled for Monday, August 26: will be provided on Friday, August 23 for people residing in Scotland, England, Wales, and Northern Ireland.

You can find the complete list of Tax Credit payment date changes in the GOV.UK website

The complete list of Child Benefit payment date changes is also available on GOV.UK.

Possible DWP Payment Date Changes in August

Although these date changes are still to be confirmed, they are expected to follow the same path as those issued by HMRC for the August 26 bank holiday only.

DWP payments scheduled for Monday, August 26, may be made early on Friday, August 23, 2024.

Possibly affected payments:

• Carer’s Allowance
• Attendance Allowance
• Income Support
• Employment Support Allowance (ESA)
• Jobseeker’s Allowance (JSA)
• Universal Credit
• Personal Independence Payment (PIP)
• Pension Credit
• State Pension

Universal Credit Childcare Support Benefits for Working Parents

The government offers a variety of benefits, tax breaks and schemes for parents of young children. Many of these benefits are not widely known, as a result many parents tend to miss out on them.

If you're employed and have a hard time paying for childcare costs and your child is aged between nine months and five years, you may be able to claim back some of these costs through Universal Credit.

Childcare isn’t limited to nurseries as it can also include other options such as preschool, after-school programs, babysitters, school leisure programs. These services are available not only during the school term, but also throughout the summer holidays.

This enables you to claim a great portion (85%) of your childcare expenses, regardless of the number of hours you work, this can amount to £1,014 for one child, or to a maximum of £1,739 for two children.

How to Claim Universal Credit Benefits?

Claims can be submitted three months in advance, and the payment will be provided subsequently.

If you are a Universal Credit claimant, you can get an additional benefit known as the ‘child element’, which equates around £288 per child monthly, in addition to your basic Universal Credit payment.

In order to qualify, your household income needs to be under £40,000, or £50,000 for larger families.

It's worth noting that even if you are not currently receiving Universal Credit, you can still get help.

This program is referred to as tax-free childcare, and it generally provides a 20% reduction in childcare expenses. You can rely on the scheme to cover up to £10,000 of childcare costs annually.

If you pay £8,000 into the scheme, the government will provide you an additional £2,000, effectively granting you a 20%  bonus which can help you to pay for childcare costs. To be eligible for this, you must be employed and earn under £100,000 per year.

Currently, there is a further £333.33 worth of Universal Credit that can be claimed by families with first children born before 6 April 2017 when a limit was imposed. For every other second and subsequent child, a sum of £287.92 is now paid out per child. These amounts would go up to $440.13 and $394.72 respectively if the changes were made.

A family with two children – one born before April 2017 and one after – would see their universal credit increase from £621.25 to £834.85 if these changes are implemented. For families with two children born after April 2017, the additional sum would increase from £575 .84 to £789 .44-.

SNP's Call for Child Benefit Reform

Stephen Flynn, the SNP Westminster leader, wants Scottish Labour MPs to support moves that are “brave enough” to wipe out child poverty even further. This includes removing the cap and matching Scotland’s child payment by Holyrood across the UK through raising the child element of Universal Credit by £26.70 per child per week. He has written to Scotland’s Labour Party leader, Anas Sarwar, asking him to direct his MP colleagues in Scotland towards backing this motion from his own party.

If it doesn’t act on its own, Flynn has said that the SNP will make the government eliminate the two-child benefit limit. The King’s Speech which outlines Government’s legislative program is due for amendment.

These days, after King’s Speech is debated; some amendments are likely to come up. Sir Lindsay Hoyle who is House of Commons Speaker has authority to determine which amendments must be deliberated upon.

“The Tory two-child cap became the Labour Party two-child cap,” wrote Flynn in a letter directed towards Scottish Labour leader, “now that Sir Keir Starmer is Prime Minister.” Flynn argues for simple scrapping of this cap or political choice needing cross-party backing elsewhere.

A Plea for Unity

The SNP Westminster leader addressed Mr Sarwar, telling him that he was ready to cooperate for the benefit of the Scottish people. He further argued that a cap was a good starting point. Preempting the King’s Speech, Mr Flynn said: “The two-child policy is actually causing poverty in Scotland, and dropping this should be the minimum expectation from Labour government on poverty. I plead with Keir Starmer to put it into his programme of Government this week, if he does not, we will table an SNP amendment to scrap it instantly. It is disgraceful and needs to stop immediately.”

This income-related benefit is provided to help individuals in and out of work on a low income cope with their daily living expenses.

Universal Credit Reporting Requirements and DWP's Fraud Investigation

Universal Credit benefits are usually paid every month, but can be paid once every two weeks for some people residing in Scotland. However, many claimants may not know that certain changes in circumstances have to be reported to the DWP since this could impact their eligibility for the payments and in some cases, result in penalties, fines, or even court appearances.

The changes that you need to report include getting a new phone number or email address, moving to a different bank account, changing address and your rent increasing up or decreasing. DWP guidance on GOV.UK cautions: “You could be taken to court or have to pay a penalty if you give wrong information or do not report a change in your circumstances.”

The DWP asserted earlier this year it currently has “3,100 full time equivalent agents reviewing Universal Credit claims”.

During the 2024/25 fiscal year, the DWP will assess a sample of claims from five particular benefits including the State Pension as part of its fraud and error investigation for 2024.

DWP's Fraud and Error Review During this Fiscal Year

The DWP is set to assess a sample of claims from the benefits cited below for fraud and error in 2024/25

• Carer's Allowance
• Housing Benefit (State Pension age cases)
• Personal Independence Payment (PIP)
• Pension Credit
• State Pension
• Universal Credit

Change of Circumstances You Must Report to DWP

DWP guidance asserts that you have to report changes to your circumstances so that you can keep getting the right amount of financial assistance every month. It also explains that you are required to report changes “as soon as they happen” since any delay “may mean you receive too much money and will have to make a repayment”.

DWP cautions: “Changes in your circumstances can affect how much you’re paid for your whole assessment period — not just from the date you report them.”

Changes can include:

• Getting employed
• Finishing a job
• Having a baby
• Moving in with your partner
• Caring for a child
• Caring for a disabled person
• Changing your phone number
• Changing your email address
• Moving to a new address
• Changing your bank information
• Fluctuations in your rent
• Changes to your health condition
• Becoming too sick to work
• Changes to your income — only if you’re self-employed
• Changes to your savings
• Shifts in your immigration status, if you don't hold British citizenship

How to Report a Change

In order to report a change of circumstances, you'll need to sign in to your Universal Credit account on the GOV.UK website.

Middlesbrough £140 Payment Requirements

To qualify for the grant, applicants must:

• Be responsible for Council Tax, rent, or mortgage payments for a property in Middlesbrough.
• Reside at the said property.
• Have savings amounting to less than £6,000.

Application Categories

Applications are welcome from various household types, including:

• Households receiving benefits without children.
• Households not receiving benefits.
• Households receiving benefits with children.
• Pensioner households.

Specific Conditions for Benefit Recipients

If your application is accepted, and you are single you will receive a gift card for £37.50 or if you are a couple a gift card for £50. For households NOT on benefits, the payment is open to people with and without children. To be eligible, you must have earned less than £30,000 (single) or less than £50,000 (couple) in the past year before tax.

For those on benefits, you are eligible if you receive any of the following:

• Council Tax Reduction
• Income-based Employment and Support Allowance
• Housing Benefit
• Income Support
• Income-based Jobseeker's Allowance
• Pension Credit
• Tax Credit
• Universal Credit

You must also have savings worth less than £6,000. The amount depends upon who lives in your house. In case you are single, then your voucher will be worth £37.50 while it will be higher at 50 pounds if you’re married.

Additional Grants for Households with Children

The North East local authority said that if people have no children, but they live together as couples, either of them would get gift cards with lower value of 70 pounds each instead of higher amounts like for those unaccompanied ones above. The same thing applies to both singles and couples, reading:"We can apply some, or all, of the payment to your Council Tax account."

"This will mean you have less to pay, or it can reduce the amount of arrears (debt) you have. This can help free up money to spend on other things like energy bills or food. We'll discuss this with you once you've applied."

Sure Start Maternity Grant helps with any financial aid that you might need as a new or expectant mother, but what’s really great here is that it doesn’t have to be paid back.

This assistance from the government helps offset the financial implications involved when you are having a newborn. However, there are some specific conditions which must be satisfied for one to qualify under this program.

In terms of finances, it will help ease some stress out of your pocket in relation to expenses associated with newborns. In some cases, parents may even get more than the usual £500.

For instance, if you already have children under 16 and are expecting twins or triplets, then you could get a £1,000 grant. In fact, looking after somebody else’s child who is related to you may also qualify you for this grant, regardless of your family status.

Want more information? Just let me tell you about those who are eligible and how they can apply.

Who is Eligible for the Sure Start Maternity Grant?

The grant is available to new or expecting mothers who get certain benefits like Income Support, Pension Credit, income-related Employment and Support Allowance, Universal Credit or Working Tax Credit with disability element or child tax credit.

The grant claiming period is very specific: apply within 11 weeks before your baby’s due date or anytime during the first six months after birth. You may not qualify for this benefit unless you are expecting multiples or caring for someone else's child but have children under 16 generally.

How to Apply for the One-Off Payment

Applying for the grant is simple. You can obtain Sure Start Maternity Grant (SF100) application form through online download or post offices.

Any healthcare professional e.g. doctor/midwife should complete the statement found on page 10 of this form. If you don’t have enough time, you can submit it without that section, and they will deal with it later.

After completing the form, either send it by post to “Freepost DWP SSMG” or take it to your nearest Jobcentre Plus office. You will be sent a letter that confirms whether your claim was accepted or denied at that point in time.

If you are not eligible for Sure Start Maternity Grant, there are other government grants and schemes you can apply for to help with money.

Healthy Start Scheme can offer a yearly amount of £442 in terms of food and milk. Moreover, remember to apply for Child Benefit that could be worth up to £1,133 annually.

Nonetheless, consider the High Income Child benefit Charge if your household income exceeds £50,000. In some cases, it may be necessary to refund part of the benefit; therefore, it would be prudent to include this in your financial plan.

Each letter will come with a QR code that directs recipients to the GOV.UK website and allows them to update their claim faster and easier online.

HMRC Urges Parents to Extend Child Benefit for Children in Education Before Deadline

Child Benefit provides up to £1,331 per year for the first or only child and up to £881 per year for each additional child.

Payments will automatically cease on or after August 31 once the child reaches the age of 16, unless parents renew their claim or their child continues to pursue education.

For 16-19-year-olds planning to pursue approved education or training, parents can use the online service available on the GOV.UK website or the HMRC app to make sure they do not miss out on benefits.

Child Benefit can still be paid for children who are studying full-time in approved non-advanced education, this includes:

• A-levels or Scottish Highers.
• International Baccalaureate.
• Home education — if it began before a child turned 16, or after 16 provided that they have a statement of special educational needs that has been assessed by the local authority.
• NVQs, up to level 3.
• Technical levels.

Child Benefit will also be provided for children enrolled in one of these unpaid approved training programs:

• Scotland: Employability Fund programme and No One Left Behind.
• Northern Ireland: PEACEPLUS Youth Programme 3.2, Training for Success or Skills for Life and Work.
• Wales: Foundation Apprenticeships, Traineeships or the Jobs Growth Wales+ scheme.

In the case a child changes their mind regarding further education or training, parents can simply notify HMRC online or through the app and payments will be updated accordingly.

Myrtle Lloyd, HMRC’s Director General for Customer Services, stated: “Child Benefit is an important financial support for many families, so make sure you don’t miss out on any payments if your teenager intends to continue approved education or training. You can quickly and easily extend your claim online or via the HMRC app.”

Parents will have until August 31 to act, or their payments will automatically cease.

How to Avoid Payment Interruption?

According to HMRC, the quickest way to avoid payments interruptions is to update the information online or via the official app. Those who do not receive a letter by July 17 can still prolong their Child Benefit claim via the GOV.UK website or the HMRC app.

To access HMRC’s online services, parents must have a Government Gateway user ID and password. If they haven't registered yet, they can do so on GOV.UK and will only need their National Insurance number or postcode, along with two forms of ID.

The funds are allocated by local authorities to residents who qualify for this service, and each council decides on how much it will allocate depending on its location.

Its purpose is to address basic needs such as food, clothing and utilities as well as offer support through vouchers and small grants during times of high cost of living.

Councils Roll Out New Support Payments Amid Cost of Living Crisis

Last week also saw the latest HSF local council schemes identified across districts:

Doncaster

In Doncaster, thousands of people may qualify for a £290 grant in cash. Consequently, Doncaster Council has given an allocation that can aid households receiving any of these benefits:

• Housing benefit
• Local council tax reduction
• Means-tested free school meals
• Universal Credit (including the housing element)
• Universal Credit (including the housing element)

Payments will be distributed as follows:

• Single individuals without dependent children: £50
• Couples without dependent children: £70
• Households with one dependent child: £110 (two payments of £55)
• Households with two dependent children: £170 (two payments of £85)
• Households with three dependent children: £230 (two payments of £115)
• Households with four or more dependent children: £290 (two payments of £145)

A dependent child is one who is in receipt of child benefit. Anybody who received their payment before from the program will get their payments without questions. These include pensioners or those not on pensions who did not receive any money earlier and meet the criteria but must fill out an online application.

Kirklees

In Kirklees, West Yorkshire, thousands of homes are entitled to £300 payments designed to help them offset rising bills. It is expected that over 15,000 people are eligible for this financial assistance, according to Kirklees Council.

The council is also extending help to local food banks and community organizations. So, applicants must apply and once the eligibility has been confirmed, payments will be made.

Eligible recipients are those on low incomes or benefits who need assistance with energy costs and feeding their families. Free school meals for families will automatically get support during school holidays without any application process.

Newcastle

Newcastle City Council has given out food vouchers to households in receipt of free school meals during holiday periods while at the same time giving hardship payments of £200 to families facing significant financial problems.

Qualification for this grant is based on having household responsibilities as well as a budget deficit that leads to expenses being more than incomes. Newcastle City Council's Advice Compact partners must have sought its residents' help through them to authorize the fund. Individual applications are not allowed.

A comprehensive list of the council’s advice partners can be found on its website. According to Newcastle City Council, funding was “limited” hence some people may miss out on receiving payment.

North Yorkshire

North Yorkshire Council is issuing £140 worth of e-vouchers to several homes that can be spent at nine retailers, and these are given to households who get a 100% council tax reduction.

On the first week of July, eligible homes started receiving letters providing guidance on how to go about claiming their vouchers. Every letter carries an individual redemption code, which will need to be inserted into the council’s site.

The redeeming process has to be completed by August 5th so that £140 can be availed before the expiry date of this voucher system. To claim the e-vouchers, you need an email account.

Worcestershire

The council has enabled people living in Worcestershire counties to access the HSF scheme facilitated by Act on Energy, which is responsible for its management. Participants who are eligible may apply for assistance with their electric bills, gas costs and water charges as well as oil, LPG and solid fuel bills.

Households with at least one child below 18 years or young adults up to 21 who are studying full-time could receive a maximum amount of £500 while adult residents aged between 18 and 66 without children get up to £300 for support purposes.

Equally, single adults or couples who qualify for pensionable age shall also obtain from this reward or incentive scheme thirty pounds towards their expenses (HM Government n.d.).

How to Apply for the HSF in Your Area

Contact your area council for help from the Household Support Fund, as advised by the Government website. To know if you qualify for it and access it in your area, do this:

1. Visit Your Local Council's Website: Almost every local government has an official website that has information about the household support fund in the form of eligibility criteria, application procedures and contacts for further assistance.
2. Check Eligibility Criteria: This will often depend on things like income levels, some benefits received (such as Council Tax Support or Universal Credit) and specific household circumstances (for example having children, being a pensioner or having disabilities).
3. Look for Application Details: Some councils make payments automatically to eligible residents, while others require applications. How to apply, what documents are needed and deadlines are usually posted on the local authority’s website.
4. Contact Your Council Directly: If you cannot get the details online, call your local council’s customer service or welfare support department.

Controversial Two-child Benefit Cap Sparks Criticism and Calls for Reform

Recent research from the Department for Work and Pensions (DWP) reveals that over 1.4 million children risk being excluded from support due to the Two Child limit, a policy heavily criticized by many charities.

The restriction, described as “one of the cruellest welfare policies of the past decade,” implies that benefit-claiming families who have a third child or more after April 2017 will receive at least £3,000 less than those whose children were born earlier.

Prime minister Keir Starmer has ignored requests to cancel the two-child limit, despite Labour’s dedication to addressing child poverty.

Liz Kendall, work and pensions secretary, stated: “Too many children are growing up in poverty and this is a stain on our society.

“We will work to give every child the best start in life by delivering our manifesto commitment to implement an ambitious strategy to reduce child poverty. I will hold critical meetings with charities and experts next week to get this urgent work under way.”

Impact of Two-Child Cap on Working Families and Single Parents

According to the Child Poverty Action Group, nearly half (45%) of families stated that the policy makes it difficult for them to pay their mortgage or rent. A comparable percentage (46%) finds it difficult to budget for childcare.

A working mother stated: “My number one reason for doing anything is my children, yet when I watch them queuing in a food bank with me because I physically can’t provide for them, I feel horrific, it makes you feel like an absolute failure.”

In this context, Joseph Howes, End Child Poverty Coalition and chief executive of Buttle UK stated: “The two-child limit just has to go. If the aim is to reduce child poverty, there is no way for the new Labour government to keep this policy in place when the evidence shows that the number of children impacted is increasing year on year.

“Children living in poverty cannot wait any longer – this shameful policy must be scrapped, the time for action is now.”

52% of households affected by this policy are single-parent households, while in the general population, only 16% of households are headed by a single parent, with the majority of these being women.

Becca Lyon, head of UK Child Poverty at Save the Children, declared: “It is an outrage that 440,000 families are denied vital support because of the unfair two-child limit, a rise of over 30,000 since last year.

“More and more children will suffer every year just because they have siblings, unless the UK government acts now. The cruel two-child benefit cap should be scrapped immediately to prevent families from facing hardship and destitution.”

Understanding PIP Benefits and Access to Additional Support

The most recent figures from the Department for Work and Pensions (DWP) show that over 3.5million individuals all over Great Britain, including nearly 219,000 residing in Scotland, were receiving PIP at the end of January. A successful PIP claim is currently worth between £28.70 and £184.30 per week to provide assistance with the extra costs of daily living and mobility needs.

Nevertheless, a PIP award may enable recipients to have access to means-tested benefits even if their previous claims have been rejected. Additionally, as outlined in the PIP Handbook on GOV.UK, it is also possible to backdate certain benefits to the start of the PIP award.

Entitlement to PIP or Adult Disability Payment (ADP) in Scotland, serves as a gateway to other benefits, like Carer’s Allowance, and schemes such as the Blue Badge.

The guidance notes that while many benefits and schemes have additional qualifying conditions, some, including the Blue Badge, offer alternative ways to access benefits that don't depend on a specific rate or component of PIP, or ADP.

The guidance states : “For DWP benefits, Housing Benefit and Council Tax Reduction, we share information to enable claimants to automatically access other disability benefits and services.

“However, claimants should inform other benefit offices about their entitlement to make sure they’re paid the correct amounts, particularly if there are any changes in their circumstances and awards.”

DWP added that in most cases, claimants will need to use their PIP award letter as evidence of entitlement. The guidance also mentions that carers can claim Income Support for up to 26 weeks during the PIP assessment period, and many carers may continue claiming Income Support after PIP is granted.

Benefits that Could be Accessed with a PIP Award

Even i you may not qualify for any or all of these benefits, it’s worthwhile to check and ensure you are not missing out on extra support.

• Universal Credit.
• Carer’s Credit.
• Employment and Support Allowance — only if you get the PIP daily living component.
• Income Support.
• Council Tax Discount.
• Housing Benefit.
• Child Tax Credit — new claims are now replaced by Universal Credit.
• Pension Credit — only if you get the PIP daily living component.
• Working Tax Credit — new claims replaced by Universal Credit.
• Access to Work.
• Carer’s Allowance.
• Council Tax Reduction.
• Jobseeker’s Allowance.

Where to Seek Help

Anyone who has already applied for PIP or has questions about their award and what other they may qualify should ring the Disability Service Centre.

You can reach out to them for advice or information regarding a claim you’ve made for PIP, Disability Living Allowance (DLA) or Attendance Allowance.

Adult Disability Payment

Adult Disability Payment is a health benefit in Scotland for people aged between 16 and State Pension age, who are disabled, have a chronic physical or mental health condition or have a terminal illness.

How to apply for Adult Disability Payment

To submit an application for ADP, you can do so over the phone, by post or in-person. For more information on how to apply, visit the dedicated website on mygov.scot here or ring Social Security Scotland on 0800 182 2222.

This payment is accessible to people who have reached the UK Government’s eligible retirement age, which is currently 66 for genders, and have settled at least 10 years' worth of National Insurance contributions.

Workplace and private pensions will support the State Pension in retirement, however, many individuals may be counting on this contributory benefit as their main income in retirement, so it’s important to be aware of the number of years required to make NI contributions in order to maximize the payout.

The State Pension age is expected to rise to 67 between 2026 and 2028 with an additional increase to 68 planned for the mid-2040’s.

If you are concerned about how many years you'll need to work, whether retirement is far off, or just around the corner — our helpful guide below will clarify how National Insurance contributions influence the amount of State Pension you will receive.

How to Receive Any New State Pension Payment

A minimum of 10 qualifying years on your National Insurance record is required to be eligible for any State Pension, but they don’t need to be 10 consecutive qualifying years.

This implies that for a period of 10 years, at least one or more of these conditions applied to you:

• You were employed and paid National Insurance contributions.
• You were in receipt of National Insurance credits, for instance if you were unemployed, ill, a parent or a caregiver.
• You were making voluntarily contributions to National Insurance.

You may still be able to receive some New State Pension if you have lived or worked overseas.

You might also be eligible if you have settled married women’s or widow’s reduced rate contributions — more details about this are available on the GOV.UK website here.

How to unlock Full New State Pension Payments

What is meant by the term 'full'  is the maximal amount of New State Pension someone can receive.

Around 35 qualifying years will be required to unlock the full New State Pension if you have no National Insurance record before 6 April 2016 — this may increase if you were 'contracted out'.

For individuals who have contributed between 10 and 35 years, they can get a portion of the new State Pension, but not the full amount unless they purchase additional National Insurance years.

Qualifying Years if You Are Employed

When you are employed, you pay National Insurance and get a qualifying year if:

• You work and receive more than £242 a week from a single employer.
• You work for yourself and pay NI contributions.

Qualifying Years if You Are Not Working

If you can't work due to an illness or disability, or because you're a carer, or you’re unemployed, you may still get National Insurance credits.

You can be eligible for National Insurance credits if you:

• Claim Child Benefit for a child under the age of 12 (or under 16 before 2010).
• Receive Jobseeker’s Allowance or Employment and Support Allowance.
• Get Carer’s Allowance.

If You Are Not Working or Receiving National Insurance Credits

You can still be able to pay voluntary National Insurance contributions if you’re not in one of these groups but want to rise your State Pension amount. For more details, visit the GOV.UK website here.

If There Are Gaps in Your National Insurance Record

You can have gaps in your NI record and still receive the full New State Pension. A State Pension statement will show you how much State Pension you might get. You can also request a National Insurance statement from HMRC to check for any gaps.

If there are gaps that might prevent you from getting the full New State Pension, you may be able to:

• Receive National Insurance credits.
• Make voluntary National Insurance contributions.

DWP Maternity Allowance Provides Financial Support for New Mothers

Maternity Allowance payments are provided by the Department for Work and Pensions (DWP) to help new mums who are not eligible for the Maternity Pay care for their newborns.

Future parents can submit an application for Maternity Allowance from the twenty-sixth week of their pregnancy and can receive payments anytime from their twenty-ninth week to the day after their child is born.

Maternity Allowance is deposited every two or four weeks directly into your bank account, credit union, or building society account.

Maternity Allowance can affect the rate at which other benefits are provided, but your total payments either increase or remain the same.

Who Qualifies for Maternity Allowance?

You could qualify for Maternity Allowance if you’re self-employed, have recently left employment or provide unpaid services for your spouse or civil partner’s business.

You must have been registered as self-employed, or have been employed, for at least 26 weeks out of the 66 weeks prior to your due date.

In the case you are self-employed or have recently stopped working, you must have been making £30 a week or more for a minimum of 13 of those 66 weeks, but the weeks do not necessarily need to have been consecutive.

It doesn’t matter whether you’ve held various jobs or experienced periods of unemployment across the 66 weeks, provided that you've met the 13-week requirement.

If you provide free services for your spouse or civil partner’s business, you could qualify if you’ve completed work for a minimum of 26 weeks in the 66 weeks before your baby is born.

During these same 26 weeks, your spouse must have been enrolled as self-employed with HMRC and settled Class 2 National Insurance contributions.

You wouldn't qualify if you had held another job or were self-employed while working for your civil partner's business.

What Amount Could You be Entitled To?

If you have recently ceased working, you could receive up to £184.03 a week or 90% of your typical weekly earnings — whichever is lower — for up to 39 weeks.

If you’re self-employed, you could get between £27 and £184.03 a week for up to 39 weeks, as long as you've been enrolled as self-employed with HMRC for at least 26 weeks in the 66 weeks prior to your due date.

The amount you will receive depends on the number of National Insurance contributions you make within the 66 weeks preceding your baby's due date.

Class 2 National Insurance contributions amount to £3.45 a week and are settled as part of the self-assessment tax bill. These contributions entitle you to benefits such as the Maternity Allowance and state pension.

In order to get the full £184.03, you must have settled Class 2 National Insurance contributions for a minimum of 13 out of the 66 weeks before the baby is born.

If you’ve paid no more than 13 weeks of contributions, the sum you get will be reduced and based on the number of payments you’ve provided.

If you’ve provided no payments at all, you’ll be eligible for £27 a week.

You can augment your contributions to increase your Maternity Allowance after you submit an application.

If you provide free services for your spouse or civil partner, you will receive  £27 a week for a period of 14 weeks.

How to Make a Claim?

You can submit an application for Maternity Allowance from the 26^th week of your pregnancy.

To make sure you’re paid when you need it, you'll have to submit your application within three months of the date you wish to start getting your payments.

You’ll be required to file a MA1 Maternity Allowance claim form, which can be completed online, printed out and sent via post.

You’ll be required to provide details about your job and earnings in the 66 weeks prior to your due date.

You’ll also need to provide proof of payment, such as paychecks, and evidence of your due date or birthdate.

If your employer has denied your Statutory Maternity, you’ll have to provide a SMP1 form.

You should receive a decision on your claim within 20 working days, if you are dissatisfied with the decision you have the option to request a reconsideration.

The scheme works by giving councils all over the country a portion of funding available to hand out to the most financially deprived households in Britain.

Many Households Eligible for a £290 Cost of Living Payment

Under the government's Household Support Fund scheme, each local authority is given a different slice of funding depending on the size of the area, population, and number of poverty-stricken households.

The voucher or grant amounts varies according to your location, so it is advisable to check to see what you can receive and how your council will hand you the money.

For instance, thousands of Doncaster residents could qualify for a £290 cost of living payment.

The City of Doncaster Council has opted for using the funds to help working-age and pensioner households in Doncaster who get any of the benefits below:

• Universal Credit, which includes the housing element.
• Housing benefit.
• Local council tax reduction.
• Means-tested free school meals.

Payment will be provided to qualifying families as follows:

• Single individuals with no dependent children will get a single payment of £50
• Couples with no dependent children will get a single payment of £70
• Families with one dependent child will receive a total of £110 from the scheme, this will be divided into two payments of £55 each.
• Families with two dependent children will get a total of £170 from the scheme, this will be divided into two payments of £85 each.
• Households with three dependent children will receive a total of £230 from the scheme, this will be divided into two payments of £115 each.
• Families with four or more dependent children will get the total sum of £290 from the scheme, this will be split into two payments of £145 each.

It is worth reminding that a dependent child is a child who receives child benefit.

How to Receive the Payment

People who have previously received a payment under the council's scheme will be paid automatically.

If you happen to be a pensioner or a working-age person who did not get a payment under the previous Household Support Fund scheme and meet all the criteria cited above, you will have to apply online.

In order to claim Household Support Fund payment, check the following website: www.doncaster.gov.uk/services/council-tax-benefits/household-support-fund

The closing date for application is set for Friday, August 30, at 5pm.

Payment will be sent directly into your bank account, relying on the information you previously provided.

You are only required to contact the council if your bank account information has changed since your last award.

To do so, send an e-mail to householdsupportfund@doncaster.gov.uk and provide your personal information including your name, your National Insurance number, your address, your new bank sort code, your account number, and the name of the account holder.

Payment to families that include dependent children will be provided in two split instalments.

The first payment is scheduled for after June 7, 2024 and the second payment will be issued by August 9, 2024.

Payment to families with no dependant children will be issued by a single payment into your account from the end of June onwards.

What If I Don't Live in Doncaster?

To get the financial assistance, you are required to check with your council — as local authorities are responsible for distributing the funding.

To locate your local council, use the gov.uk council finder tool.

Once you've located your council, there should be information on how to submit an application on its website.

Each council has a different application process — so exact information on how to apply varies according to where you live.

That means that the eligibility criteria to access the fund can also vary.

Some councils won't need you to apply for the assistance, and they'll contact you about it instead if you are eligible.

In case no information is provided by your council's website, then it's better to call them and ask for more details.

Given the rise in the unemployment to 3.89%, an increasing number of individuals are seeking benefits. Consequently, the Department for Work and Pensions (DWP) has just published new instructions on verifying the identities of applicants when they seek to receive Universal Credit.

The latest update includes a comprehensive list of identification documents. New claimants must present these at the Jobcentre if invited for a face-to-face interview. It is essential to note that Universal Credit no longer utilises Government Gateway. Nor does it use GOV.UK Verify for online verification.

Methods for Verifying Your Identity for Universal Credit Claims

You can verify your identity through several methods, including:

• Online identity verification
• Face-to-face appointments
• Documentary evidence
• Biographical interviews

Online Identity Verification

Online verification is a straightforward method to confirm your identity. This procedure includes giving exclusive personal details, like information from your passport or salary slips.

To verify your identity online, the DWP requires any two of the following items:

• Payslips dated within the last three months
• The most recent P60
• A valid UK passport
• Recent Self Assessment returns
• Tax Credits (including Voice ID)
• Credit references or records, such as information about credit cards or phone contracts

Successfully verifying your identity online may exempt you from the full 'initial evidence interview'.

Alternative Methods for the Identity Verification

The DWP uses a mix of documentary proof, interviews, and its own records to confirm a person's identity. This process might include:

• Face-to-face appointments
• Phone biographical interviews

If you are required to attend a face-to-face appointment at a Jobcentre Plus, you must bring identification and proof of address.

The DWP stated: “Depending on your circumstances, details of what evidence you need to provide will be discussed with you when you apply for Universal Credit.” For further information, visit the DWP's official guidance on GOV.UK.

Universal Credit 2024/25 Fiscal Year Payment Rates

Universal Credit (monthly rates)

Single claimants

• Under 25: £311.68
• 25 or over: £393.45

Joint claimants

• Joint claimants, both under 25: £489.23
• Joint claimants, one or both 25 or over: £617.60

Child Amounts

• First child (born prior to April 6, 2017): £333.33
• First child (born on or after April 6, 2017) / second child and subsequent child (where an exception or transitional provision applies): £287.92

Disabled Child Additions

• Lower rate addition: £156.11
• Higher rate addition: £487.58

Limited Capability for Work

• Monthly amount: £156.11

Limited Capability for Work and Work-Related Activity

• Monthly amount: £416.19

Carer amount

• Monthly amount: £198.31

Childcare costs amount

• Maximum for one child: £1014.63
• Maximum for two or more children: £1,739.37
• Non-dependants’ housing cost contributions: £91.47

Work Allowances

Higher work allowance (no housing amount)

• One or more dependent children or limited capability for work: £673.00

Lower work allowance

• One or more dependent children or limited capability for work: £404.00

You can find detailed information about the deduction amounts for Universal Credit based on household situations on the GOV.UK website.

However, even if the detailed policy implementations will be made in the next few weeks, Labour has made significant promises concerning quite a number of important fiscal aspects of the economy such as pensions, taxes, mortgages among others.

What Labour's Victory Means for the UK's Financial Future!

Let us examine the principal areas that the Labour Party has committed to addressing, encompassing pensions, taxes, mortgages, and various other issues.

Pensions

Labour has promised to keep the pensions 'Triple Lock', which is good news for older people worried about the cost of living going up. The triple lock makes sure that the state pension doesn't lose value by increasing it each year based on inflation, average earnings, or 2.5% - whichever is higher.

Right now, the state pension is £11,502 a year, and the personal allowance is £12,570. But it's predicted that the basic pension could be over £13,000 a year by the end of the next ten years. The Office for Budget Responsibility (OBR) has warned that the state pension will be higher than the personal allowance by 2027.

Also, Labour has even agreed and pledged to reform base employment pensions with the aim of boosting pension saving. As mentioned in their manifesto, one of the priorities is to carry out a pensions' policy to discuss what additional measure are still required to enhance the pensions and lift the investment in the UK markets further. The value of the state pensions in the predicted years will depend upon inflation and average earnings growth.

Taxes

As for taxation, Labour has promised not to rise income tax, National Insurance or the VAT. However, trade and economic organizations expect that the Labour Party will raise taxes as a result of the current state of the British’s budget situation left behind by the Conservatives.

While Labour has not clearly mentioned which taxes may increase, s/he has assured the public that the lack of movement on income tax thresholds will remain until the year 2028.

Additionally, with wages increase more employee at the higher rate threshold of £50,270 will be subjected to 40% of the tax on savings interest. This one can disappear altogether, or it could be reduced from £1,000 to £500 as Labour has not pledged to preserve it.

Childcare

Child poverty is a big issue and the Labour Party intends to address it through free breakfasts for all children in primary schools. These are their propositions: Transforming disused school classrooms into nurseries funding it through the removal of tax incentives for private schools, and creating 3000 new nursery classes all across England to work for the increase in childcare hours for families. The priority in this case is seeking to assist 750,000 parents to regain employment.

Two-Child Benefit Cap

The Labour Party intends to uphold the two-child benefit cap, which limits parents' eligibility for child tax credit or universal credit to a maximum of two children, despite recognizing the adverse impact of this policy.

Starmer has indicated that prevailing economic circumstances do not allow for the removal of the cap. Backers are calling on the government to reconsider this position in order to address child poverty more effectively.

Private School Fees

Labour plans to introduce a 20% VAT on fees for private schools, which is a prominent aspect of their campaign. The effect on school costs will differ, with some schools potentially absorbing a portion of the additional expense. School principals have cautioned that this may result in increased fees for families.

Mortgage Guarantee Scheme

Labour has proposed a “freedom to buy” pledge, making the mortgage guarantee scheme permanent. Initially introduced by the Tories in 2021, this scheme helps first-time buyers with deposits as low as 5% by using the state as a guarantor for 95% mortgages, encouraging more banks to offer these loans.

Rental Market Reforms

In June, Starmer announced that Labour would introduce legislation to end rental "bidding wars." This measure aims to prevent landlords from exploiting tenants by demanding higher rents to secure properties. However, the specifics of this legislation remain unclear.

Savings

A potential reduction in the Bank Rate is expected to lower savings rates. Wealth advisers recommend locking in favourable rates now. These actions should be taken before any cuts or potential Labour changes.

Minimum Wage and Employment

The Labour Party seeks to broaden the scope of the minimum wage to encompass younger employees, in contrast to the Conservatives, who have already extended the full minimum wage to individuals aged 21. Labour advocates for the reduction of this age threshold to include 18-year-olds. Presently, the hourly minimum wage for workers aged 21 and above stands at £11.44, while it is £8.60 for individuals aged 18 to 20.

Additionally, workers under 18 and apprentices receive £6.40 per hour. In addition to its stance on the minimum wage, Labour pledges to abolish zero-hour contracts and halt the "fire and rehire" practices. Furthermore, they intend to establish entitlements to parental leave, sick pay, and safeguards against unjustified dismissal from the first day of employment.

Tax expert Andy Wood from Tax Natives called attention to the importance of taking action before the deadline to prevent incurring penalties that can amount to £3,000. Affected recipients are urged to act promptly upon receiving a renewal pack.

"Tax credit claimants must inform HMRC of any changes in their circumstances, such as alterations in living arrangements, childcare situations, or employment status. Failing to do so could lead to severe financial repercussions, including the loss of tax credits or fines up to £300." According to Andy Wood.

By 19 June, around 730,000 people are expected to receive a renewal application, to which they must respond by 31 July.The mentioned deadlines have been set to streamline the processing of applications and ensure the uninterrupted payment of tax credits.

Andy said: "You have multiple avenues to report changes, including online platforms and phone assistance from HMRC. Using these channels ensures that changes are accurately recorded, providing peace of mind for claimants and keeping the process efficient for HMRC. Having your National Insurance number, details of changes, and income information ready before contacting HMRC can also help streamline the process."

HMRC could Fine Tax Credit Claimants Up to £3,000

Andy Wood warned: "Non-compliance with reporting requirements can have serious repercussions such as loss of tax credits, repayment demands and even fines of up to £3,000 if incorrect information is provided. If you’re eligible for automatic renewal, check for the specified code 'TC 603 R' and accompanying letter in the renewal pack."

This code expedites the renewal process and prevents avoidable delays that may result in cessation of tax credit payments for claimants. If your form includes 'TC 603 R', you will receive an automatic renewal.

Andy also stressed the importance of contacting HMRC either in writing, by email or by telephone in case the renewal file has not been received, to avoid disputes or the potential exclusion of tax credits.

Andy added: "You are required to review your renewal pack and report any changes to HMRC by the end of July. These changes include living arrangements, childcare situations, and employment status. For instance, if childcare costs decrease by £10 or more per week, or working hours fall below 30 hours per week (combined for couples with children), report it to maintain the accuracy of the tax credit claim."

If your payment is due on Monday 26 August, you are likely to receive it on Friday 23 August instead of the original date. The Department for Work and Pensions (DWP) does not process benefit payments on bank holidays.

Therefore, you will need to budget carefully as there will be a longer gap until your next payment. Your benefits will be deposited into your usual account, and the amount you receive will remain the same.

DWP Payment Schedules

The timing of your prompt payment is contingent upon your established benefit schedule. Specifically, Universal Credit is disbursed on a fixed date each month, while tax credits are commonly distributed every four weeks or weekly. Child Benefit is typically administered every four weeks on a Monday or Tuesday, as per the Mirror.

Here is a thorough explanation of the typical payment timetables for different perks:

• Attendance Allowance: Every four weeks
• Carer’s Allowance: Weekly in advance or every four weeks
• Child Benefit: Every four weeks, or weekly if you are a single parent or receive certain benefits
• Disability Living Allowance: Every four weeks
• Employment and Support Allowance: Every two weeks
• Income Support: Every fortnight
• Jobseeker’s Allowance: Every fortnight
• Pension Credit: Every four weeks
• Personal Independence Payment (PIP): Every four weeks
• State Pension: Every four weeks
• Tax Credits: Every four weeks or weekly
• Universal Credit: Monthly

What Should You do if Your Payment Fails to Arrive?

If your benefit payment is delayed, start by confirming the date on your award notice and checking your bank account. If all details are accurate and the payment remains absent, reach out to the relevant helpline. Keep in mind that these helplines might be inaccessible during bank holidays.

Below are the contact details for several prevalent benefits:

Universal Credit:

• Freephone: 0800 328 9344
• Welsh language: 0800 012 1888
• Textphone: 0800 328 1344

Child Benefit:

• Freephone: 0300 200 3100
• From outside the UK: +44 161 210 3086

Tax Credits:

• HMRC freephone: 0345 300 3900
• From outside the UK: +44 2890 538 192

Jobseeker's Allowance, Income Support, Incapacity Benefit and Employment and Support Allowance:

• Freephone: 0800 169 0310
• Textphone: 0800 169 0314
• Relay UK (for those with hearing or speech difficulties): 18001 then 0800 169 0310

As reported by the Department for Work and Pensions (DWP), the New State Pension, applicable to claimants post April 6, 2016, amounts to a maximum of £221.20 per week.

For recipients of the Basic State Pension, the earlier iteration, the weekly amount is £169.50, contingent upon classification under Category A or B.

The amount you receive is contingent upon the accumulation of National Insurance years prior to reaching the age of 66. A minimum of 10 years is required to be eligible for any financial benefits. Therefore, if you are approaching the age of 66, it is imperative to promptly assess your entitlements.

Your State Pension age also serves as your Pension Credit qualifying age, yet there is a particular stipulation for men born before December 6, 1953. Should you seek information on when you are eligible to start receiving benefits, the  'Check your State Pension age' page on the GOV.UK website provides comprehensive guidance.

Upon attaining State Pension age or Pension Credit age, certain benefits become inapplicable. According to Turn2us, specific benefits from the Department for Work and Pensions are no longer attainable.

Here is an overview of the benefits that will continue and those that will cease upon reaching State Pension age.

List of Benefits Pensioners can no Longer Claim

Pension Credit Age

Upon reaching this age, it is time to bid farewell to:

• Income-based Jobseeker’s Allowance
• Income-related Employment and Support Allowance (ESA)
• Income Support
• Universal Credit

Turn2us adds a little twist: if one member of a living together couple has reached retirement age while the other has not, the situation becomes more complex. It is advisable to use the Turn2us benefit calculator to ascertain your eligibility or consult with a benefits advisor.

State Pension Age

After Hitting the State Pension age and clocking in, there are certain adjustments to the eligibility criteria. Specifically, you forfeit the ability to claim:

• Jobseeker's Allowance (JSA)
• Contributory/New Style Employment and Support Allowance (ESA)

Assuming one is considering the entitlements of Disability Living Allowance (DLA) or Personal Independence Payment (PIP), it is important to note the following conditions. After reaching State Pension age, individuals are unable to initiate a new claim for these benefits.

However, if they were already recipients, it is possible to renew the benefits, provided the same health conditions persist and the previous claim lapsed less than a year before attaining pension age.

Notably, individuals who were DLA claimants prior to April 8, 1948, are exempt from transitioning to PIP. Conversely, those born after this date will undergo a mandatory transition.

Bereavement Support Payment and Widowed Parent’s Allowance are also discontinued for individuals once they reach State Pension age.

Benefits Still Available Post-Retirement Age

Not all benefits will cease to exist. Certain benefits will remain valid even after you have reached retirement age:

• Child Benefit (delivered by HMRC)
• Carer’s Allowance – though the amount you get may be affected by your State Pension income
• Guardian’s Allowance
• Statutory Sick Pay (SSP)

Certain benefits are subject to income thresholds or other specific conditions; nevertheless, you are still eligible to apply for them:

• Pension Credit
• Housing Benefit
• Council Tax Support
• Support for Mortgage Interest
• Working Tax Credit (HMRC) – new claims are not allowed, but you can continue to benefit from them if you already do
• Child Tax Credit (HMRC) – same as Working Tax Credit, no new claims but ongoing support if already claimed.
• Help with Health Costs
• Cold Weather Payment – now replaced by the £55.05 Winter Heating Payment in Scotland
• Warm Home Discount Scheme
• Winter Fuel Payment