Benefit and Pension Updates for June 2024 Amid Cost of Living Crisis

In the UK, the economic landscape continues to be shaped by the ongoing cost of living crisis, which will feature prominently in the lead-up to the general election on July 4, 2024. Inflation saw a decrease to 2.3% in May, a drop from the peak of 10.1% in 2022, but living costs remain significantly higher than in previous years.

For June 2024, all usual benefits and pension payments are expected to be distributed on their regular dates due to the absence of bank holidays. Payments 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, and Jobseeker’s Allowance.

In terms of assistance, the Household Support Fund (HSF) has been extended by six months past its original deadline of March 31. Local councils administer the HSF, offering support through cash grants, supermarket vouchers, and energy bill assistance.

Additional support includes budgeting advance loans for Universal Credit recipients, extended repayment periods, and various charitable grants available through organizations like Turn2us. Energy providers such as Scottish Power, EDF, E.ON, and Octopus offer assistance, and British Gas provides grants up to £2,000.

Council tax reductions are possible for eligible individuals, while working parents can apply for up to 30 hours of free childcare, with expansions planned for September 2024 and 2025.

Lastly, the energy price cap was reduced to £1,690 in April and is projected to decrease again in July. Despite the decrease, the figure remains substantially higher than pre-pandemic levels.

Benefits and state pensions saw a 6.7% increase in April due to high inflation, with state pensions benefiting from an 8.5% rise, reflecting average earnings growth.

Savings Accounts Warning

Savers in the UK are potentially missing out on significant interest earnings due to suboptimal account choices. An analysis by TotallyMoney reveals that savers with an average balance of £17,365 at 4.96% interest could earn £861 annually. In contrast, savers with accounts offering 1.27% interest would only earn £220, a disparity of £641. Experts urge individuals to review and potentially switch their savings accounts to secure better rates.