As school holidays wrap up, some financial stress may ease for UK families—but the broader cost‑of‑living challenge remains.
Despite inflation retreating to pre‑pandemic norms, prices for essentials have stayed stubbornly high while wages remain stagnant. Furthermore, escalating household bills are pushing many into debt just to cover basic needs.
Food and Energy Insecurity Still Acute
In January 2025, approximately 7.3 million adults—accounting for 13.9% of households—faced food insecurity, a level that shows no return to pre‑2022 conditions.
At the same time, energy arrears have more than doubled over five years, reaching £3.9 billion by the end of 2024.
Encouraging Benefit Uptake
An estimated 24 million people in the UK now receive some form of DWP‑administered benefit, nearly one in three residents.
Yet, £23 billion worth of entitled benefits remain unclaimed each year. To explore potential entitlements, use the online calculator offered by the Policy in Practice organization.
Key Financial Support and Important Dates for This September
Regular Benefit Payment Schedules
Benefit payments in September will proceed normally, as there are no bank holidays affecting them. Included are:
- Universal Credit
- State Pension
- Pension Credit
- Child Benefit
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Attendance Allowance
- Carer’s Allowance
- Employment Support Allowance
- Income Support
- Jobseeker’s Allowance
Visit the government’s official site for detailed benefit payment schedules.
Transitioning to Universal Credit
By January 2026, the DWP plans to migrate all legacy benefits—including tax credits, income support, jobseeker’s allowance, and housing benefit—to Universal Credit. If you currently receive any of these, you should have been notified about the transition.
When to Expect the State Pension
State pensions are paid every four weeks, with the day determined by the last two digits of your National Insurance (NI) number:
- 00–19: Monday
- 20–39: Tuesday
- 40–59: Wednesday
- 60–79: Thursday
- 80–99: Friday
Benefit Rate Adjustments
- In April, working-age benefits (e.g., Universal Credit, PIP, DLA, Attendance Allowance, Carer’s Allowance, ESA) were increased by 1.7%, reflecting September 2024 inflation.
- The state pension rose by 4.1% under the triple-lock mechanism—adding about £472 annually.
- From April 2026, Universal Credit recipients will begin receiving above‑inflation increases, with at least 2.3% growth each year through 2029, thanks to new legislation.
However, new claimants’ health‑related element of Universal Credit will be cut from £105 to £50, and this lower rate will remain frozen until 2029, making early applications advisable.
Additional Support Measures Available
Budgeting Advance Loans
If you’re on Universal Credit and facing an urgent financial shortfall, you can borrow a budgeting advance loan, repaid over up to two years. These interest‑free advances are deducted automatically from your benefit and include:
- £348 for a single claimant
- £464 for couples
- £812 if you or your partner receive Child Benefit
Starting April 2025, the DWP will cap all benefit deductions—covering budgeting advances and debt repayments—at 15% of the standard allowance, down from 25%, thanks to new measures introduced in the Labour government’s October Budget.
Discretionary Housing Payment (DHP)
If you receive Housing Benefit or the housing component of Universal Credit, you may apply to your local council for a Discretionary Housing Payment. DHP can help cover rent shortfalls, deposits, and rent in advance when moving. Availability, eligibility, and funding vary by council.
Household Support Fund (HSF)
Local councils administer the Household Support Fund, offering essential help such as appliance assistance, utility bill contributions, or direct cash payments—sometimes up to £300.
This support runs until March 2026, after which it will transition to the “Crisis and Resilience Fund”, backed by £1 billion in government funding. Contact your local authority to apply.
Charitable Grants
Individuals dealing with financial hardship—such as those who are ill, disabled, carers, unemployed, students, or bereaved—may qualify for charitable grants. The Turn2us organization provides a helpful online tool to explore eligibility.
Energy Provider Assistance
Major energy firms like British Gas, Scottish Power, EDF, E.ON, and Octopus offer support for those struggling with energy bills. Contact your provider directly to understand what help may be available.
Council Tax Reductions
If you’re facing financial hardship or already receive certain benefits, you might be eligible for a council tax reduction of up to 100%. Discretionary relief may also be granted based on severe hardship. Check and apply via your local council.
Childcare Support
Working parents currently benefit from 30 hours of free childcare for 3‑ to 4‑year‑olds. Since April 2024, this has extended to 15 hours free for 2‑year‑olds.
From September 2025, all children under five will qualify for 30 hours free childcare. You must apply online and reconfirm eligibility every three months. Tax‑free childcare also gives back 20p per 80p paid, up to £500 per year.
Energy Price Cap Update
Ofgem’s energy price cap has fallen from £1,849 to £1,720 for July to September—a 7% decrease. The new cap for October to December will be announced by the end of August.
Cost‑of‑Living Payments
No additional Cost‑of‑Living Payments have been announced for 2025. The final payments were made between February 6 and 22, 2024.
Mental Health Support Options
If you’re struggling, support is available:
- Samaritans: 24/7 free helpline at 116 123, email jo@samaritans.org, or visit samaritans.org to find a local branch.
- Mind: offers a support line (0300 102 1234), information line (0300 123 3393), and a welfare benefits line (0300 222 5782).
- Scope: runs a peer‑support forum for those with disabilities.
- NHS England: provides an online mental health triage service.
UK families are still navigating significant financial challenges, with essentials remaining expensive and incomes lagging behind.
Fortunately, a wide range of support options—from benefits and loans to grants, childcare support, and mental health services—is still available.
If you haven’t already, now is the time to explore what you might be eligible for and take advantage of available help to ease the burden.
FAQs
If you’re on Universal Credit and in financial distress, you can apply. Single claimants can borrow up to £348, couples up to £464, and families receiving Child Benefit as much as £812. These are interest‑free and repaid via benefit deductions over two years.
Working parents are entitled to 30 hours free childcare for 3‑ to 4‑year‑olds. Since April 2024, two‑year‑olds get 15 free hours, expanding in September 2025 to 30 hours for all children under five. Applications and eligibility renewal are required via an online portal every three months.
Yes—Ofgem has reduced the cap from £1,849 to £1,720 for the July–September period, marking a 7% decrease. The new cap for October–December will be revealed at the end of August.
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