Millions to Receive Boost in Incomes as New Financial Year Begins
As the new financial year gets underway, millions of households across the UK can expect a boost in their incomes, offset by rising costs. According to a report, households have gained from several income boosts this April, for both those in and out of work. All DWP-administered benefits rose 1.7 per cent as the state pension rose by 4.1 per cent in line with the triple lock. The minimum wage also increased by an inflation-busting 6.7 per cent, giving millions of workers a bumper £1,400 pay rise. This information comes from a report by The Independent, which has been providing in-depth coverage of the changes.
However, there is some bad news. Household bills have now seen big rises across the board, including energy, water and council tax. Many will also be worried about Labour’s recently-announced changes to the welfare system. Amounting to £5 million in cuts, these will see the rates for Universal Credit change next year, followed by the criteria to claim the Personal Independence Payment (PIP) tightening. The Independent reports that these changes are set to affect millions of low-income households.
The latest figures from millions of low-income households paint a bleak picture of the UK’s economic situation. Latest research from the Joseph Rowntree Foundation found that more than 1 in 5 people in the UK (21 per cent) were in poverty in 2022/23 – 14.3 million people. This comprised 8.1 million working-age adults, 4.3 million children, and 1.9 million pensioners. According to The Independent, these statistics highlight the need for support and guidance on the financial assistance available to households.
Benefit Payment Dates in April
Benefit payments will be going out as normal in April for the most part, but there are some exceptions to be aware of over the Easter Weekend. Those who are expecting a payment on 18 April (Good Friday) or 21 April (Easter Monday) should instead be paid on Thursday 17 April. The Independent reports that the following benefits will be paid as usual:
- Universal Credit
- State pension
- Pension credit
- Child benefit
- Disability living allowance
- Personal independence payment (PIP)
- Attendance allowance
- Carer’s allowance
- Employment support allowance
- Income support
- Jobseeker’s allowance
For more information on how and when state benefits are paid, visit the government’s website. The DWP is aiming to complete the migration of all ‘legacy benefits’ to Universal Credit by January 2026. Those receiving tax credits, income support, jobseeker’s allowance, and housing benefit should have received a notice about moving to Universal Credit already.
Pension Payment Dates in March
The basic state pension is paid straight into bank accounts similar to how benefits are paid. It is usually paid every four weeks, with the exact day you receive it corresponding to the last two digits of your national insurance (NI) number. The Independent provides a breakdown of when you can expect to receive your state pension based on your NI number:
- 00 to 19: Monday
- 20 to 39: Tuesday
- 40 to 59: Wednesday
- 60 to 79: Thursday
- 80 to 99: Friday
Will Benefit Rates be Going Up in April?
In April, all benefits will be uprated by 1.7 per cent, matching the September 2024 inflation figure. The increase will apply to all working-age benefits, including universal credit, PIP, DLA, attendance allowance, carer’s allowance, ESA and more. Meanwhile, in line with the triple lock, the State Pension will rise by 4.1 per cent – up £472 a year – matching wage growth in 2024. The Independent reports that these changes will affect millions of households.
Other Help Available
There are several other forms of help available to those struggling financially. The government offers a ‘budgeting advance loan’ for people on Universal Credit who face an emergency lack of money. The loan has a maximum repayment period of two years. These loans are interest-free, and automatically deducted from Universal Credit payments. You can borrow an ‘advance’ of up to:
- £348 if you’re single
- £464 if you’re part of a couple
- £812 if you have children
From April 2025, deductions from universal credit will be capped at 15 per cent of the standard allowance, down from 25 per cent.
Charitable grants are also available for people who are disabled or ill, carers, bereaved, unemployed, students – and many more. The charity Turn2us has an online tool to search for grants which may be available to you.
Energy suppliers also offer help for those struggling with their energy bills. These include Scottish Power, EDF, E.ON and Octopus. It is worth contacting your energy provider to find out if you are eligible.
Energy Price Cap: Is it Going Up in April?
Ofgem’s energy price cap has risen from £1,738 to £1,849 for April to June – an increase of 6.4. This marks the third consecutive increase in the figure, and will mean an average increase of £9.25 per month from the current rate. The Independent reports that this change will affect millions of households.
Mental Health Support
For those struggling with mental health issues, there are several resources available. In the UK and Ireland, Samaritans can be contacted 24 hours a day, 365 days a year. You can call them for free on 116 123, email them at [email protected], or visit samaritans.org to find your nearest branch. Mind runs a support line on 0300 102 1234 which provides a safe and confidential place to talk about how you’re feeling.
