In April, millions of citizens experienced a significant increase in their income due to the annual adjustments of state benefits and pensions that come with each new fiscal year.
This adjustment ensures that incomes keep pace with rising prices, which have seen considerable increases due to inflation during the cost of living crisis. Despite the decrease in inflation to 3.2% in April, down from 3.4% in March, the outlook is not entirely positive as prices remain higher than in previous years, and inflation has begun to stabilise after a sharp decline towards the end of 2023.
Impact of Inflation and Increase in Poverty
The economy, though showing positive progress in recent months, faces the challenge that the reduction in inflation has not returned prices to their pre-crisis levels, but has only moderated the rate of increase. Concurrently, the latest government data on low-income households reveal an increase in absolute poverty for the second consecutive year, with nearly one million more people in poverty in 2022/23 compared to the previous year. These figures highlight the ongoing struggle against economic adversity in the UK.
Financial Support Options
Faced with this challenging economic situation, it is crucial to be aware of the financial support available for low-income families. In May, beneficiaries of DWP benefits should pay attention to key dates for payments that are made regularly, 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
- Unemployment Allowance
It is important to note that if a payment date coincides with public holidays, payments will be made on the last working day before. For example, payments due on May 6 will be processed on May 5, and those due on May 27 will be processed on May 26.
The DWP has also issued a warning to about 500,000 benefit claimants that they will soon need to take action as six ‘legacy benefits’ are replaced by Universal Credit. Furthermore, it is vital for citizens to consult the government website for details on how and when these payments are made. A report by Policy in Practice revealed that nearly £19 billion in benefits go unclaimed each year; they offer an online calculator to help individuals determine what benefits they might be entitled to.