Universal Credit and benefit payment dates for March 2024 will coincide with the termination of cost of living adjustments.

Jeremy Hunt presented his Budget for the spring in the current month, announcing a decrease of 2p in National Insurance taxes, modifications to Child Benefit, and the introduction of a new financial instrument called “British Isa”.

Some specialists have raised worries that the chancellor’s recent actions may be biased towards individuals with higher incomes. The Resolution Foundation, an economic think tank, notes that those making £50,000 or above will see the greatest advantage from the NI reduction.

In late 2023, it was verified that the UK has officially fallen into a recession. This was announced shortly after reports showed inflation holding steady at 4%, defying expectations of a further increase – although still far from the government’s 2% objective.

Despite the difficult economic circumstances, the issue of high living costs continues to persist. The cost of bills, food, and rent all remain unwaveringly expensive, leaving millions in a struggle to meet basic necessities.

According to a study by the Joseph Rowntree Foundation (JRF), 73% of low-income families receiving Universal Credit faced food insecurity in the latter part of last year. The study also found that one out of every six families resorted to turning off their fridge or freezer to save money.

This is a quick summary of the government’s financial assistance for families in need during March and the corresponding payout dates for those who are eligible to receive benefits.

The regular payments for benefits and pensions will be distributed as usual in March. These include:

If your payment date happens to be on Good Friday (March 29), you will receive your anticipated payment on the previous day (March 28).

To learn more about the timing and process of receiving state benefits, please refer to the official government website.

Despite facing continued financial strain, the government has not indicated any intentions to prolong the duration of its cost of living payment program beyond February 2024.

The Chief Analyst at the JRF, Peter Matejic, stated that the Government’s payments for cost of living provided temporary relief for families. However, without these payments, families are left with an unreliable income safety net and increasing expenses for basic necessities such as food and energy.

If you qualify, you will receive a final cost of living payment of £299 sometime between February 6, 2024 and February 22, 2024. Individuals who receive specific benefits or tax credits are eligible for this payment, such as Universal Credit, Jobseeker’s Allowance, Employment Support Allowance, Income Support, Pension Credit, Child Tax Credit, and Working Tax Credit.

This transaction is one of several that have been made over the course of 2023.

If you think you were qualified for these disbursements but did not receive them, we advise you to reach out to the DWP.

Local council assistance

In the recently announced budget, Jeremy Hunt announced the extension of the Household Support Fund (HSF) for an additional 6 months, surpassing the initial deadline of 31 March.

The HSF provides funding to local councils for assisting vulnerable households within their jurisdiction. Councils have the freedom to allocate the funds in a manner they deem most suitable.

For example, certain individuals have supplied monetary donations, grocery vouchers, or aid with energy bills. To determine what assistance may still be accessible, you must visit the website of your local council.

The End Furniture Poverty charity provides a convenient assistance finder tool to determine the support options available to you.

Budgeting advance loans

The government currently provides a “budgeting advance loan” to those on Universal Credit who experience a sudden shortage of funds. In the past, the loan had to be repaid within 12 months, but now it has been extended to 2 years.

These loans are interest-free, and automatically deducted from Universal Credit payments. You can borrow an ‘advance’ of up to:

Charitable grants

If you are facing financial hardship, you may qualify for charitable grants. There are various grants offered depending on your individual situation.

Yet, these grants will usually necessitate you to fulfill certain requirements and only have the ability to provide restricted funds.

There is a possibility to receive charitable assistance for those who have a disability, illness, are caregivers, experiencing loss, unemployed, or studying. You can use Turn2us’ online feature to explore potential grants that could be accessible to you.

Energy provider help

Several energy companies provide assistance for individuals facing challenges with paying their energy costs. These include Scottish Power, EDF, E.ON, and Octopus. It may be worthwhile to reach out to your energy provider to determine if you qualify for such assistance.

British Gas also offer a grant of up to £2,000 to customers of any energy provider. You will need to meet specific criteria to be eligible, and can apply on the British Gas Energy Trust website.

On April 1st, the energy price cap will decrease to £1,690, a reduction of £238 compared to the previous cap of £1,928 in January.

According to analysts from Cornwall Insight, this number is expected to decrease to £1,462.86 in July, but then increase slightly to £1,590 in October.

The energy price cap limits the highest rate that energy companies can bill you for each unit of energy if you have a standard variable rate plan, which is the case for the majority of households. It is presented as a yearly charge for an average household.

The decrease in prices is a result of lowered wholesale energy expenses. This refers to the cost that energy companies incur for purchasing electricity and gas prior to distributing it to consumers.

Despite being a notable decrease from the previously recorded high rates in the past two years, the amount still remains nearly £1,000 higher per year compared to before the pandemic.

In April 2024, both benefits and state pension will experience an increase.

Jeremy Hunt stated in his autumn statement that benefits will receive a 6.7 percent increase based on the September rate of inflation. He also announced an 8.5 percent increase for state pensions during the same period.

The CPAG has cautioned that not increasing the benefits cap will result in more individuals exceeding its limit, leading to a decrease in purchasing power for many.

Have you felt the impact of rising inflation or have a personal account to share about navigating the current cost of living challenges? Contact us at [email protected] via email.

Source: independent.co.uk