People are more worried about the cost of living now that conflict in the Middle East could suddenly hurt Britain’s economy. The situation has caused a lot of problems for the global oil trade which has had an effect on the prices of things like food and energy.
Economists say that the worst effects can be avoided if the fighting stops soon, but there is still a lot of uncertainty as the fighting goes on.
DWP Warns Of 37-Week Delay: Disability Benefit Decision Backlogs Impact Thousands Of Claimants
Inflation fell sharply in January to 3%, the lowest level in 10 months. This is good news for household finances some experts now think that the rate could reach the Bank of England’s goal of 2 percent by April, which was last seen for a short time in 2024.
Prices are going up more slowly because of the downward trend but for many people, the cost of living is still too high.
The Cost of Living Action group recently found that about two-thirds 63 percent of Brits have had to cut back on the things they need to live because of the high cost of living.
The Resolution Foundation think tank, which showed how big the problem is, says that 55% of households living in poverty now have at least one working person.
The state pension is expected to go up by 4.8% next April which is the same as the growth in annual earnings.
As wages go up each year (PA), the state pension is expected to go up by 4.8% starting in April.
In this tough economic climate, families should get all the help they can. About 24 million people in the country are now getting some kind of benefit from the Department for Work and Pensions (DWP). This includes people who are getting a state pension, which is about one in three people.
But Policy in Practice’s research shows that £24 billion worth of benefits go unclaimed every year. You can use its helpful calculator to find out what you might be able to get.
Are you having trouble with the DWP or the cost of living? Tell your story at [email protected] here is a list of the financial help that families can get this April, as well as some important dates for people who get benefits or state pensions to remember:
Dates in April when benefits will be paid
This includes:
- Credit for everyone
- Pension from the state
- Credit for pensions
- Child benefit
- Disability Living Allowance (DLA)
- Payment for personal independence (PIP)
- Allowances for attendance
- Allowance for carers
Go to the government’s website for more information on how and when state benefits are paid.
By the end of March 2026, the DWP wants to have moved all “legacy benefits” to universal credit. People who get tax credits, income support, jobseeker’s allowance, or housing benefit should have already gotten a letter telling them to switch to universal credit.
Dates for pension payments in April
Like other benefits, the basic state pension goes straight into bank accounts. You usually get it every four weeks, and the day you get it is the same as the last two digits of your national insurance (NI) number.
Based on those numbers, you should be paid at this time:
- Monday is for people between the ages of 0 and 19.
- Tuesday is for people between the ages of 20 and 39.
- Wednesday is for people between the ages of 40 and 59.
- Thursday is for people between the ages of 60 and 79.
- Friday is for people between the ages of 80 and 99.
The same changes to the payment dates for bank holidays that affect most benefits will also affect state pension payments.
When will the rates of benefits go up?
In April 2026, everyone who gets universal credit will get a 6.2% rise in their standard allowance, which is more than the rate of inflation. For a single person over 25, this will mean an extra £6 a week, going from £92 to £98. The inflation rate for September alone should raise most other benefits by 3.8% this includes ESA, PIP, DLA, attendance allowance, carer’s allowance, and more.
But at the same time, the monthly payment for the health-related part of universal credit for new claimants will drop from £105 to £50. Existing claimants’ rates will also stay the same until 2029.
This is a drop of more than £200 a month, which is about half of the extra rate. This means that anyone who thinks they might be eligible should apply as soon as possible.
The government has confirmed that the state pension will go up by 4.8 percent starting next April, in line with the growth of annual earnings. This will make the weekly amount £241.05.
The Independent has a guide that will help you learn more about the new benefit rates.
Fund for Crises and Resilience
Starting in April, councils will be able to run Labour’s new “Crisis and Resilience Fund.” This fund is meant to help low-income families when they have trouble paying for basic needs.
It will take the place of both the discretionary housing payments and the household support fund.
Payment for a crisis
The first part of the new plan will be a “crisis payment” to help low-income families who have had a financial shock or are at risk of going into crisis.
Councils will still be able to decide the exact eligibility criteria, just like they do with the Household Support Fund. The government’s advice, on the other hand, says that it shouldn’t just be for people who get benefits.
The DWP has told councils to give out cash payments first when there is a crisis, unless there is a good reason not to.
Payment for housing
There will also be a new “housing payment” across the UK to help people who need it with their housing costs.
This will usually have to do with rent, like needing rent in advance, a rental deposit, or a shortfall. It could also include a one-time payment for housing, like the cost of moving.
The housing payment, on the other hand, will only be available to people who are already getting certain benefits. These are either housing benefit or universal credit with a part for rent costs. DWP says, though, that people who don’t qualify but still need help might be able to get a crisis payment instead.
Loans for budgeting ahead
If you are on universal credit and need money right away, the government can give you a “budgeting advance loan.” You can pay back the loan in up to two years.
You don’t have to pay interest on these loans, and they come out of your universal credit payments automatically. You can get a “advance” loan of up to:
- £348 if you are single
- £464 if you are married
- £812 if you or your partner claims child benefit
After Labour’s 2024 Budget, the DWP could only take a certain amount out of benefit payments to pay off loans and debts, including budgeting advance loans.
Starting in April 2025, the maximum amount that can be taken out of universal credit will be 15% of the standard allowance, down from 25%.
Grants for charity
You might be able to get some charitable grants if you’re having trouble with money. Depending on your situation, there are a lot of different grants you can apply for.
But these grants usually have certain requirements you have to meet and can only give you a small amount of money.
People who are sick or disabled, carers, grieving, unemployed, students, and many other reasons can get charitable grants. Some people may be able to find grants through the online tool that the charity Turn2us offers.
Social rates for broadband and water
If you have trouble paying your bills, there are social tariffs for both broadband and water. This will mean that some households that qualify will pay less.
By law, every business in the UK has to have a social tariff for water. However, the amount on offer can vary between regions and, because water providers can’t be chosen like energy providers, the support has been criticised as a “postcode lottery”.
Some, for example, will lower your bills by as much as 90%, while others will only lower them by 20%.
You should check your water company’s website or call the helpline to find out what help they offer. In all cases, families must be considered to have low incomes and/or be getting certain benefits.
Lowering the council tax
You might be able to get a council tax discount of up to 100% if you meet certain requirements or are on certain benefits. This is sometimes called “council tax support.”
If you can show that you are in serious trouble and can’t pay your council tax, your local council may still be able to give you a discretionary reduction.
To get a lower council tax, go to the government’s website and get in touch with your local council.
Free childcare for up to 30 hours
Starting on September 1, 2025, all working parents in the UK were able to get 30 hours of free childcare for kids up to four years old. This was the end of a series of gradual expansions that started in April 2024.
Every three months, parents must apply online and confirm that they are still eligible, just in time for each school term. Parents who work can also get tax-free childcare, which gives them 20p back for every 80p they spend on childcare, up to a maximum of £500 a year.
Is the energy price cap going up?
The energy price cap set by Ofgem will go down by about seven percent, or £117, to £1,641 from April 1 to June 31, 2026. It will stay at £1,758 until March 31.
If you have a standard variable tariff, the energy price cap is the most that energy companies can charge you for each unit of energy. Most homes are included in that. It is shown as a yearly bill for an average home.
A lot of experts, including Ofgem itself, are telling people to look into a fixed tariff energy deal because many of them are cheaper than the price cap rate.
By May 27, Ofgem will tell the public what its cap will be for July through September. Cornwall Insight, an energy consulting firm, has warned that this could be a sharp rise of up to 10%, or £160, because of the situation in the Middle East.
In 2026, will there be another cost of living payment?
The DWP hasn’t said anything about continuing the cost of living payment program that ran from 2022 to 2024. The last payment should have been made to eligible households between February 6 and February 22, 2024.
Help for mental health
Mind runs a support line at 0300 102 1234 where you can talk about how you’re feeling in a safe and private way. 0300 123 3393 is the number for an information line that can help you find nearby support. 0300 222 5782 is the number for a welfare benefits line that can help people with their mental health while they are going through the benefits system.
