July 2024 is the deadline for universal credit, benefits and pensions in the midst of a general election

With just days to go until the UK general election, all the major parties are sharing their plans to tackle the ongoing crisis in life.

Following the spiraling inflation of the past few years, sky-high prices continue, as millions continue to struggle to pay their bills, afford essentials or even keep a roof over their heads.

Inflation finally hit the Bank of England’s 2 percent target in June – for the first time in three years. That’s down from a peak of 11.1 percent in October 2022.

While this is welcome economic news, unfortunately the decline in inflation does not mean that costs are going back to what they were before, just that they are starting to grow a little faster.

The cost of living in the UK is a key talking point, as all parties prepare their plans to revive the UK economy and bring prices to sustainable levels.

Recent research from the Joseph Rowntree Foundation shows that nearly one million people are just £10 out of poverty, while 3.2 million are just £40 clear. They asked the party leaders to make more promises to fight poverty in the country.

The government’s latest annual figures on low-income households paint a bleak picture of the UK’s economic situation. They show that absolute poverty has increased for two consecutive years, with almost a million more people in poverty in 2022/23 than in 21/22.

Meanwhile, the Tressel Trust revealed in May that its food banks had delivered 3.1 million emergency food parcels last year – the largest number in their history.

In light of these tough economic conditions, here is an overview of financial aid for low-income families this July and key dates for benefit recipients to look out for:

Benefits go out as usual

Normal benefits and pension payments will stop as normal in July. These are:

As there are no bank holidays in July, you can expect to receive your payments on normal days.

The DWP has also warned 500,000 benefit claimants that they will soon face action as six ‘legacy benefits’ are replaced by Universal Credit.

For more information on how and when government benefits are paid, please visit the government website.

Last year’s Policy in Action report shows that almost £19bn of benefits go unclaimed a year – they offer a useful calculator to work out what you’re entitled to.

Were you affected by the issues in this story? Contact via email: albert.toth@independent.co.uk

Family Support Fund

In the Spring Budget, Jeremy Hunt confirmed that the Household Support Fund (HSF) will be extended for 6 months beyond the original date of 31 March.

The HSF is a fund given to all local councils to help vulnerable families in their area. Councils are free to allocate funds however they feel best.

For example, some provide cash assistance, supermarket vouchers, or energy bill assistance. You will need to visit your local council’s website to find out what grants are still available.

To find out what support is available to you, the charity End Furniture Poverty offers a useful tool for finding help.

Other help is available

Budgeting for prepayments

The government is offering Universal Credit ‘Pre-Budget Loans’ for people who are facing an emergency lack of cash. According to the budget, the repayment period of these loans was 12 months. It has now doubled and has been for two years.

These loans are interest-free, and are automatically deducted from international credit payments. You can take out an ‘advance’ loan up to:

Charitable donations

If you are struggling financially, you may be eligible for some charitable donations. There is a wide range of assistance available depending on your circumstances.

However, these grants will generally require you to meet specific criteria and only be able to offer limited funds.

Charitable grants are available for people who are disabled or ill, carers, bereaved, unemployed, students – and more. The Turn2us charity has an online tool to search for grants that may be available to you.

Energy provider assistance

A number of energy suppliers offer help for those struggling with their energy bills. These include Scottish Power, EDF, E.ON and Octopus. It’s worth contacting your energy supplier to find out if you qualify.

British Gas is also offering a grant of up to £2,000 Customers of any energy provider. You need to meet specific criteria to qualify, and can apply on the British Gas Energy Trust website.

Council tax cuts

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Your local council can still offer you an optional reduction if you can show that you are in dire straits and can’t afford to pay your council tax.

To apply for a council tax reduction, you can contact your local council via the government website.

Free childcare for up to 30 hours

All working parents in the UK are currently entitled to 30 hours of free childcare for children aged 3 to 4. From April 1, this right will be expanded to include 15 hours of free childcare for children under 2 years old.

You must apply online and reconfirm your eligibility every three months, for each school term. Working parents can also apply for tax-free childcare, with 20p back for every 80p you spend on childcare, up to £500 a year.

There are two other expansions to free child care in the coming years:

Energy price cap: Will it come down again in 2024?

Energy prices fell to £1,690 in April, down £238 from £1,928 in January.

Analysts at the trusted Cornwall Insight predict the figure will fall again to £1,559.61 in July, but then rise slightly to £1,631.44 in October.

An energy price cap is the maximum amount an energy supplier can charge you for each unit of energy if you are on a standard variable tariff. This includes many families. This is expressed as an annual bill for the average household.

The recent drop in prices is a reflection of the recent drop in wholesale energy costs – the amount energy companies pay for electricity and gas before it is delivered to households.

Although this is a significant slide from the record high rates of the previous two years, the figure remains almost £1,000 a year above pre-pandemic levels.

How will the general election affect benefits and pensions?

There are likely to be some major changes in benefits and pensions after July 4, whichever political party wins. However, any planned changes are unlikely to be directly effective, with many going through a consultation period that could take months or even years.

Labor said it would review universal credit so that it “pays for work and fights poverty”. The party wants a plan to support people with disabilities to work, along with a work capacity assessment.

The Conservatives have said they want to take “bold action” to reduce the number of people claiming benefits. These include reforming disability benefits by changing how eligibility is assessed, looking at vouchers rather than cash payments, and introducing a new service for approving sick notes.

The party also says it will seek to remove benefits entirely for people who refuse ‘suitable jobs’ after 12 months on benefits, as well as speeding up the rollout of universal credit.

On retirement, Prime Minister Rishi Shankar committed his party to the promise of “Triple Lock Plus”. This means that, as pensions rise with the higher rate of inflation, the 2.5 per cent wage growth, the tax-free allowance on them will also rise. Under this promise, a person will never pay tax on this income in the basic state pension.

The workers refused to comply with this promise and considered it unreliable in light of the country’s economic situation. Instead, they are committed to reviewing workplace pensions to ensure financial security in retirement.