As the cost-of-living crisis continues to grip millions across the UK, December brings crucial updates for benefit and pension recipients, including payment dates, increased support measures, and essential financial assistance programs. Here’s everything you need to know about this month’s changes and the support available to help households during these challenging times.
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December Benefit and Pension Payment Dates
While most benefits and pensions will be paid as usual this December, the Christmas bank holiday on 25 December may affect some schedules. Payments due on Christmas Day will be made on 24 December, the preceding working day.
Benefits unaffected by the holiday include:
- Universal Credit
- State Pension
- Pension Credit
- Child Benefit
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Attendance Allowance
- Carer’s Allowance
- Employment Support Allowance (ESA)
- Income Support
- Jobseeker’s Allowance (JSA)
For detailed information, recipients can check payment schedules on the government’s website.
Increases to PIP and DLA Payments
Following the chancellor’s recent Budget announcement, all working-age benefits will see a 1.7% increase starting from 7 April 2025, in line with the September Consumer Price Index (CPI). This includes:
- Personal Independence Payment (PIP)
- Disability Living Allowance (DLA)
- Attendance Allowance
- Carer’s Allowance
- Universal Credit
Campaigners have expressed concerns that the increase may fall short of addressing rising inflation, which remains a critical factor in household budgets.
Essential Support Programs for December
Household Support Fund (HSF)
The Labour government has extended the Household Support Fund until March 2025. Administered by local councils, the fund provides tailored assistance to vulnerable households. Support may include:
- Cash grants
- Supermarket vouchers
- Help with energy bills
Visit your local council’s website for specific programs available in your area.
Warm Home Discount
Eligible households will receive a £150 discount automatically applied to their energy bills. Recipients must either:
- Be on a low income with high energy costs
- Be receiving the guarantee credit element of Pension Credit
Budgeting Advance Loans
Universal Credit recipients facing financial emergencies can apply for interest-free budgeting advance loans, repayable over two years:
- Up to £348 for single applicants
- Up to £464 for couples
- Up to £812 for families with children
From April 2025, a new cap will limit loan deductions from Universal Credit payments to 15% of the standard allowance, down from 25%.
Charitable Grants and Energy Assistance
Charities like Turn2us offer grants tailored to specific needs, such as illness, unemployment, or caring responsibilities. Additionally, energy suppliers like British Gas and Octopus Energy offer financial aid programs and grants up to £2,000.
Council Tax Reductions
Low-income households or benefit recipients may qualify for up to 100% reduction in council tax. Contact your local council or visit the government’s website to apply.
Additional Help for Families: Free Childcare Expansion
This year marks the continued expansion of the UK’s free childcare entitlement:
- 15 hours of free childcare is now available for children as young as two.
- From September 2025, all children under five will qualify for 30 hours of free childcare.
Working parents may also access tax-free childcare to save up to £500 annually.
Energy Price Cap Update
From October to December, Ofgem’s energy price cap rose 10%, from £1,568 to £1,717, reflecting higher wholesale energy costs. While the cap helps prevent sudden price spikes, households on standard variable tariffs will feel the impact as they head into colder months.
Cost-of-Living Challenges Ahead
Inflation surged to 2.3% in October 2024, marking the steepest rise in two years. With essentials like food, energy, and housing at record highs, the Joseph Rowntree Foundation warns that 100,000 more children and 300,000 adults could face poverty by 2029 without further government intervention.
Despite these challenges, Labour’s October Budget introduced measures such as a 6.7% rise in the national living wage and extended support programs like the HSF. However, critics remain concerned about the strain on pensioners, many of whom are bracing for a winter without the £200–£300 winter fuel payment, which was controversially scaled back this year.
Final Note: Unclaimed Benefits and Assistance
A report by Policy in Practice highlights that £23 billion in benefits go unclaimed annually. If you’re unsure about your entitlements, online tools like the End Furniture Poverty charity’s assistance finder and the government’s benefits calculator can help.
Stay informed, and explore every opportunity to secure the financial support you’re entitled to this December.
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