January 2026 funds dates for PIP, advantages and pensions plus price of dwelling help | EUROtoday

Rising payments and falling temperatures have led to greater prices for folks throughout the nation because the yr involves a detailed.

For tens of millions of Britons, balancing the price of dwelling is an ongoing problem, with family incomes unable to maintain tempo with ever-increasing costs.

In welcome information, inflation dropped sharply to three.2 per cent in November, down from 3.6, helped largely by the falling price of clothes and meals. But this does simply imply that costs are rising much less rapidly – not falling – they usually stay persistently excessive within the face of stagnant wages.

At the identical time, exorbitant family payments imply tens of millions are grappling with money owed to afford the necessities.

Around 14 million adults are going with out meals as a result of they can’t afford it, current analysis by the Trussell Trust discovered. Meanwhile, vitality arrears have greater than doubled over the previous 5 years, rising to £4.4bn by the tip of June.

Anti-poverty charity the Joseph Rowntree Foundation has stated that low-income households within the UK are on target for the worst fall in dwelling requirements on file by the following election in 2029.

Against this tough financial backdrop, it is vital that households declare all of the help they’re entitled to. There at the moment are round 24 million folks within the nation claiming some mixture of DWP-administered advantages, which embody these drawing a state pension, representing round one in three folks.

Yet new analysis by Policy in Practice reveals that £24bn price of advantages goes unclaimed yearly – you should utilize its useful calculator to work out what you may be entitled to.

Are you combating the DWP or price of dwelling this Christmas? Share your story: albert.toth@unbiased.co.uk

Here is an summary of the monetary help out there to households this January and key dates for profit and state pension recipients to look out for:

Benefit fee dates in January

For essentially the most half, profit funds will likely be going out as regular in January. These embody:

However, there’s one key financial institution vacation to concentrate on: 1 January (New Years’ Day). Anyone as a result of obtain a fee on today ought to as a substitute obtain it on Wednesday 31 December (New Year’s Eve).

There are some related modifications round Christmas. Anyone due a fee on Thursday 25 December (Christmas Day) ought to as a substitute obtain it on Wednesday 24 December (Christmas Eve). Likewise, anybody due a fee on Friday 26 December (Boxing Day) also needs to obtain it on Christmas Eve.

For extra info on how and when state advantages are paid, go to the federal government’s web site.

The DWP is aiming to finish the migration of all “legacy benefits” to common credit score by January 2026. Those receiving tax credit, revenue help, jobseeker’s allowance, and housing profit ought to have acquired a discover about shifting to common credit score already.

Are you having points with PIP, common credit score, or some other profit? Get in contact through e mail: albert.toth@unbiased.co.uk

Pension fee dates in January

The fundamental state pension is paid straight into financial institution accounts, equally to how advantages are paid. It is often paid each 4 weeks, with the precise day you obtain it akin to the final two digits of your nationwide insurance coverage (NI) quantity.

Here’s when you ought to be paid based mostly on these numbers:

The similar financial institution vacation fee date modifications that apply to most advantages can even apply to state pension funds.

When will profit charges go up?

In April 2026, all common credit score claimants will obtain an above-inflation revenue enhance of round 6.2 per cent to the usual allowance. For a single particular person over 25, this will likely be a £6 per week enhance, rising from £92 to £98.

For {couples} with one or each associate over 25, it is going to be a rise of £9 per week, rising from £145 to £154.

Most different advantages ought to be uprated by September’s inflation price alone, rising by 3.8 per cent. This consists of PIP, DLA, attendance allowance, carer’s allowance, ESA and extra.

However, on the similar time, the month-to-month fee price for the health-related ingredient of common credit score for brand spanking new claimants will likely be lower from £105 to £50. The price for current claimants can even be frozen till 2029.

This is a discount of over £200 a month, slicing the extra price by round half. This means it’s advisable for anybody who thinks they may be eligible to use as quickly as they’ll.

The state pension will to rise by 4.8 per cent from subsequent April in keeping with annual earnings development, the federal government has confirmed. This will deliver the weekly quantity to £241.05.

For extra details about the brand new profit charges, you possibly can learn The Independent’s information.

Other assist out there

Budgeting advance loans

The authorities provides a “budgeting advance loan” for folks on common credit score who face an emergency lack of cash. The mortgage has a most reimbursement interval of two years.

These loans are interest-free and are mechanically deducted from common credit score funds. You can borrow an “advance” of as much as:

Following Labour’s 2024 Budget, a brand new cap was launched on the quantity the DWP can deduct from profit funds to repay loans and money owed, together with budgeting advance loans.

Beginning in April 2025, deductions from common credit score have been capped at 15 per cent of the usual allowance, down from 25 per cent.

Discretionary Housing Payment

Households can apply to their council for a discretionary housing fee (DHP), which provides monetary help to go in the direction of lease or housing prices.

You can solely get a DHP in case you are in receipt of housing profit or the housing ingredient of common credit score. It can cowl housing prices for a lease shortfall, lease deposits and lease upfront if you should transfer residence.

Exact eligibility and the funds out there are selected a council-by-council foundation, so you will have to get in contact along with your native authority to seek out out extra.

Household Support Fund

The family help fund (HSF), distributed by native councils, provides very important help to these dealing with monetary hardship, complementing commonplace advantages and grants.

As a part of this authorities initiative, eligible households all through the UK can entry help resembling important home equipment, contributions in the direction of utility payments, and direct money funds reaching as much as £300.

Local authorities are free to resolve learn how to allocate their HSF funding to go well with households of their space, so precisely what is obtainable will differ. To apply, households have to contact their council (most supply a web-based type).

This nationwide programme is ready to run till March 2026. The authorities has dedicated £1bn in funding to transition it right into a “Crisis and Resilience Fund” which is able to substitute the DHP.

Charitable grants

If you’re struggling financially, you might be eligible for sure charitable grants. There is a variety of grants out there relying in your circumstances.

However, these grants will sometimes require you to satisfy particular standards and are solely capable of supply restricted funds.

Charitable grants can be found for people who find themselves disabled or ailing, carers, bereaved, unemployed, college students, and for a lot of different causes. The charity Turn2us has a web-based instrument to seek for grants which can be out there to some.

Energy supplier assist

A lot of vitality suppliers supply assist for these combating their vitality payments. These embody British Gas, Scottish Power, EDF, E.ON, OVO and Octopus. It is price contacting your vitality supplier to seek out out in case you are eligible.

Some additionally supply free gadgets like electrical blankets for households with weak residents to maintain heat.

Social tariffs for broadband and water

For these combating family prices, social tariffs can be found for each broadband and water payments. This will imply a decreased price for sure eligible households.

For water, each firm working within the UK has a social tariff by regulation. However, the quantity on supply can differ between areas and, as a result of water suppliers can’t be chosen like vitality suppliers, the help has been criticised as a “postcode lottery”.

For occasion, some supply as a lot as 90 per cent off payments, whereas others cap help at a 20 per cent discount.

To discover out what help your water firm provides, it’s price checking on its web site or contacting the helpline. In all instances, households will should be deemed to be on a low revenue and/or in receipt of sure advantages.

Similarly, many broadband suppliers supply social tariffs to these on sure advantages like common credit score or pension credit score. Regulator Ofcom has a information to what’s on supply.

Council tax discount

If you meet sure standards or are on sure advantages, you might be able to apply for a reduction in your council tax of as much as 100 per cent (that is typically referred to as council tax help).

Your native council should still be capable of give you a discretionary discount if you happen to can show you’re dealing with extreme hardship and might’t afford to pay your council tax.

To apply for a council tax discount, contact your native council through the federal government’s web site.

Up to 30 hours of free childcare

From 1 September 2025, all working dad and mom within the UK turned entitled to 30 hours of free childcare for kids as much as the age of 4. This concludes a gradual set of expansions that started in April 2024.

Parents should apply on-line and reconfirm their eligibility each three months, in time for every faculty time period. Working dad and mom may apply for tax-free childcare, giving again 20p for each 80p you place in the direction of childcare, as much as a most of £500 a yr.

Energy value cap: Is it going up?

Ofgem’s vitality value cap rose by two per cent in October, from £1,720 to £1,755. The £35 rise comes after a extra sizeable seven per cent lower for July to September, from £1,849 to £1,720.

For 1 January to 31 March 2026, it can go as much as £1,758, Ofgem has confirmed – a rise of 0.2 per cent.

The vitality value cap is the utmost quantity vitality suppliers can cost you for every unit of vitality if you happen to’re on a typical variable tariff. That consists of most households. It is expressed as an annual invoice for a median residence.

Many specialists – together with Ofgem itself – are recommending households contemplate a hard and fast tariff vitality deal, with many in the marketplace providing decrease than the worth cap price.

Will there be one other price of dwelling fee in 2025?

The DWP haven’t introduced any continuation of the Cost of Living Payment scheme that ran between 2022 and 2024. The closing fee ought to have been made to eligible households between 6 February and 22 February 2024.

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