February 2025 dates for benefits and pensions amid DWP PIP changes

Coming into the second month of 2025, tens of millions proceed to search for methods to maintain family prices low as new bills appear to attend round each nook. Family payments, groceries, mortgages and rents have all hit report highs over the previous 12 months, because the nation navigates the continued value of residing disaster.

Chancellor Rachel Reeves had a bumpy begin to the 12 months, because the pound slumped and authorities bonds hit new highs. Nevertheless, inflation additionally noticed a slight 0.1 per cent drop in December, bringing it to 2.5 per cent, whereas the economic system returned to slight development.

Regardless of this combined financial image, stories point out that the chancellor is seeking to make additional cuts to illness and incapacity advantages, on high of the £3bn already pencilled in for financial savings. The DWP might be releasing a paper outlining its deliberate reforms to the welfare system in Spring.

In the meantime, the most recent figures from tens of millions of low-income households paint a bleak image of the UK’s financial scenario. The newest analysis from The Joseph Rowntree Basis exhibits that greater than 1 in 5 folks within the UK had been residing in poverty in 2022/23 – round 14.3 million folks.

In the meantime, hundreds of pensioners should still be ready for his or her £200-300 winter gasoline fee after Labour’s alternative to chop again the chilly climate profit. In December, The Unbiased revealed that elevated stress on the DWP meant many had been dealing with delays of over 100 days.

Towards this difficult financial backdrop, right here is an outline of the monetary assist out there to households this February and key dates for advantages recipients to look out for:

Profit fee dates in February

Profit funds might be going out as regular in February as there are not any financial institution holidays. These embody:

For extra data 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 advantages’ to Common Credit score by January 2026. These receiving tax credit, revenue assist, jobseeker’s allowance, and housing profit ought to have obtained a discover about transferring to Common Credit score already. These claiming Employment assist allowance solely, or with housing profit, ought to obtain a discover like this by December 2025.

The division has additionally confirmed {that a} session might be launched in Spring 2025 on deliberate reforms to illness and incapacity advantages. Minister Liz Kendall says the modifications might be designed “to make sure the system is best supporting folks,” though stories point out that the Treasury is seeking to make main spending cuts.

A report from Coverage in Observe this 12 months exhibits that just about £23bn in advantages goes unclaimed a 12 months – they provide a useful calculator to work out what you could be entitled to.

Have you ever been having points with the DWP just lately? Get in contact through e-mail: [email protected]

Pension fee dates in February

The essential state pension is paid straight into financial institution accounts just like how advantages are paid. It’s 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.

Right here’s when try to be paid based mostly on these numbers:

Family assist fund

The Family Assist Fund (HSF) is funding given to all native councils to assist weak households of their space. Councils are free to allocate the funds nonetheless they really feel is finest.

As an example, some have offered money grants, grocery store vouchers, or vitality invoice help. A number of native councils have even launched schemes to ‘substitute’ the winter gasoline fee for pensioners. Go to your native council’s web site to search out out what assist could also be out there.

In August, Labour confirmed that they might lengthen the Conservative-created scheme for one more six months past the September 30 finish date. This implies it ought to now proceed till the tip of March 2025.

For a fast information to the assist out there, the Finish Furnishings Poverty charity presents a useful help finder software.

Different assist out there

Budgeting advance loans

The federal government presents a ‘budgeting advance mortgage’ for folks on Common Credit score who face an emergency lack of cash. The mortgage has a most compensation interval of two years.

These loans are interest-free, and routinely deducted from Common Credit score funds. You may borrow an ‘advance’ of as much as:

Following the Labour Finances in October, a brand new cap has been launched on the quantity the DWP can deduct from profit funds to repay loans and money owed, together with budgeting advance loans.

From April 2025, deductions from common credit score might be capped at 15 per cent of the usual allowance, down from 25 per cent.

Charitable grants

In case you are struggling financially, you could be eligible for sure charitable grants. There are a variety of grants out there relying in your circumstances.

Nevertheless, these grants will usually require you to satisfy particular standards and solely be capable of supply restricted funds.

Charitable grants can be found for people who find themselves disabled or in poor health, carers, bereaved, unemployed, college students – and plenty of extra. The charity Turn2us has a web based software to seek for grants which can be out there to you.

Vitality supplier assist

Plenty of vitality suppliers supply assist for these combating their vitality payments. These embody Scottish Energy, EDF, E.ON and Octopus. It’s value contacting your vitality supplier to search out out in case you are eligible.

British Fuel additionally supply a grant of as much as £2,000 to clients of any vitality supplier. You have to to satisfy particular standards to be eligible, and might apply on the British Fuel Vitality Belief web site.

Council tax discount

Should you meet sure standards or are on sure advantages, you might be able to apply for a reduction in your council tax low cost of as much as 100 per cent.

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

To use for a council tax discount, you’ll be able to contact your native council through the federal government’s web site.

Heat residence low cost

The nice and cozy residence low cost is a one-off £150 low cost in your electrical energy invoice. It is going to be taken routinely out of your vitality payments in case you are eligible.

To qualify, the invoice payer have to be on a low revenue with excessive vitality prices or get the assure credit score factor of pension credit score.

As much as 30 hours of free childcare

All working dad and mom within the UK are at the moment entitled to 30 hours of free childcare for youngsters aged 3 to 4. From April 1, this entitlement expanded to incorporate 15 hours of free childcare for 2-year-olds.

From 1 September, this was expanded once more to incorporate all youngsters from the age of 9 months.

You have to apply on-line and reconfirm your 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 set in the direction of childcare, as much as a most of £500 a 12 months.

The ultimate growth to free childcare, coming in September 2025, will see all youngsters underneath 5 eligible for 30 hours.

Will profit charges be going up quickly?

Following the chancellor’s Finances announcement, it was confirmed that each one advantages might be uprated by 1.7 per cent, matching the September 2024 inflation determine.

Whereas this isn’t uncommon, campaigners had referred to as for Labour to contemplate a barely increased enhance. Inflation had been increased in earlier months, starting at 4 per cent in January and rising above 2 per cent once more from October.

The rise will apply to all working-age advantages, together with common credit score, PIP, DLA, attendance allowance, carer’s allowance, ESA and extra.

In step with the triple lock, the State Pension will rise by 4.1 per cent – up £472 a 12 months – matching wage development in 2024.

Each will increase will take impact from April 2025.

Vitality Value Cap: Will it go up or down once more in 2024?

Ofgem’s vitality worth cap has risen from £1,717 to £1,738 for January to March – a rise of 1.2 per cent. It will imply increased payments for many households because the chilly climate continues to chunk.

The rise is the second consecutive enhance, with a large 10 per cent spike in October. Analysts predict an extra 3 to five per cent enhance will are available in April. A number of different payments are anticipated to extend across the identical time.

The vitality worth cap is the utmost quantity vitality suppliers can cost you for every unit of vitality in case you’re on a regular variable tariff. That features most households. It’s expressed as an annual invoice for a mean residence.

The change in costs is reflective of the price of wholesale vitality – the quantity vitality corporations pay for his or her electrical energy and fuel earlier than supplying it to households.

Do you have got an expertise to share about the price of residing within the UK? Or any recommendation to share to assist others? Get in contact through e-mail: [email protected]