February 2025 dates for benefits and pensions as DWP PIP cuts rumoured

With 2025 properly underway, hundreds of thousands 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 price of residing disaster.

Chancellor Rachel Reeves had a bumpy begin to the 12 months, because the pound slumped and authorities bonds hit new highs. Nonetheless, 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 progress.

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

In the meantime, the most recent figures from hundreds of thousands of low-income households paint a bleak image of the UK’s financial state of affairs. Latest analysis from The Joseph Rowntree Basis 100,000 extra kids and 300,000 adults are set to be in poverty by October 2029 if additional motion shouldn’t be taken by the federal government.

1000’s of pensioners are additionally nonetheless ready for his or her £200-300 winter gas cost after Labour’s selection to chop again the chilly climate profit. In December, The Unbiased revealed that elevated stress on the DWP meant many had been going through delays of over 100 days.

In opposition to this difficult financial backdrop, right here is an summary of the monetary help obtainable to households this December and key dates for advantages recipients to look out for:

Profit cost dates in February

Profit funds can be going out as regular in February as there aren’t 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 help, jobseeker’s allowance, and housing profit ought to have obtained a discover about shifting to Common Credit score already. These claiming Employment help allowance solely, or with housing profit, ought to obtain a discover like this by December 2025.

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

A report from Coverage in Apply 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 by way of electronic mail: [email protected]

Pension cost dates in February

The essential state pension is paid straight into financial institution accounts much like how advantages are paid. It’s normally paid each 4 weeks, with the precise day you obtain it similar 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 help fund

The Family Help Fund (HSF) is funding given to all native councils to help weak households of their space. Councils are free to allocate the funds nevertheless they really feel is greatest.

For example, some have supplied money grants, grocery store vouchers, or power invoice help. A number of native councils have even launched schemes to ‘exchange’ the winter gas cost for pensioners. Go to your native council’s web site to seek out out what assist could also be obtainable.

In August, Labour confirmed that they’d 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 help obtainable, the Finish Furnishings Poverty charity presents a useful help finder instrument.

Different assist obtainable

Budgeting advance loans

The federal government presents a ‘budgeting advance mortgage’ for individuals 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 Price range 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 can be capped at 15 per cent of the usual allowance, down from 25 per cent.

Charitable grants

If you’re struggling financially, it’s possible you’ll be eligible for sure charitable grants. There are a variety of grants obtainable relying in your circumstances.

Nonetheless, these grants will usually require you to fulfill particular standards and solely be capable of provide 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 instrument to seek for grants which can be obtainable to you.

Power supplier assist

Numerous power suppliers provide assist for these fighting their power payments. These embody Scottish Energy, EDF, E.ON and Octopus. It’s value contacting your power supplier to seek out out if you’re eligible.

British Gasoline additionally provide a grant of as much as £2,000 to prospects of any power supplier. You will have to fulfill particular standards to be eligible, and might apply on the British Gasoline Power Belief web site.

Council tax discount

For those who 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 be capable of give you a discretionary discount if you’ll be able to display you’re going through extreme hardship and might’t afford to pay your council tax.

To use for a council tax discount, you possibly can contact your native council by way of the federal government’s web site.

Heat dwelling low cost

The nice and cozy dwelling low cost is a one-off £150 low cost in your electrical energy invoice. It is going to be taken routinely out of your power payments if you’re eligible.

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

As much as 30 hours of free childcare

All working mother and father within the UK are presently entitled to 30 hours of free childcare for kids 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 kids from the age of 9 months.

It’s essential to apply on-line and reconfirm your eligibility each three months, in time for every college time period. Working mother and father 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 12 months.

The ultimate enlargement to free childcare, coming in September 2025, will see all kids below 5 eligible for 30 hours.

Will profit charges be going up quickly?

Following the chancellor’s Price range announcement, it was confirmed that every one advantages can be uprated by 1.7 per cent, matching the September 2024 inflation determine.

Whereas this isn’t uncommon, campaigners had known as for Labour to contemplate a barely larger enhance. Inflation had been larger 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.

According to the triple lock, the State Pension will rise by 4.1 per cent – up £472 a 12 months – matching wage progress in 2024.

Each will increase will take impact from April 2025.

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

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

The rise is the second consecutive enhance, with an enormous 10 per cent spike in October. Analysts predict an additional 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 power worth cap is the utmost quantity power suppliers can cost you for every unit of power for those who’re on an ordinary variable tariff. That features most households. It’s expressed as an annual invoice for a mean dwelling.

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

Do you’ve got an expertise to share about the price of residing within the UK? Or any recommendation to share to assist others? Get in contact by way of electronic mail: [email protected]