The cost of living crisis is far from over, and with the halfway point of 2026 now upon us, many households are feeling the pinch more acutely than ever. The conflict in the Middle East has disrupted global oil trade, sending prices for essentials like energy and food soaring. Inflation, which dropped to 2.8% in April, is expected to spike to 4% by the end of the year, according to some experts. This is a stark reminder that the financial uncertainty hanging over millions of households is far from resolved.
The impact on households is already being felt. Two-thirds of Britons have had to cut back on essentials, and 55% of households living in poverty now contain at least one working person. This highlights the growing disparity between those who can afford to weather the storm and those who are struggling to make ends meet.
In this context, it's crucial that households claim all the support they are entitled to. The Department for Work and Pensions (DWP) administered benefits, including the state pension, now cover around one in three people in the country. However, research by Policy in Practice shows that £24bn worth of benefits goes unclaimed every year.
The financial support available to households this May includes:
- Benefit payment dates in June: Universal credit, state pension, pension credit, child benefit, disability living allowance (DLA), personal independence payment (PIP), attendance allowance, and carer's allowance will all be paid as usual.
- Pension payment dates in May: The basic state pension is paid straight into bank accounts, with the exact day corresponding to the last two digits of the national insurance (NI) number.
- Benefit rate increases: Universal credit claimants received an above-inflation boost of around 6.2% in April, while most other benefits were uprated by September's inflation rate of 3.8%.
- Crisis and Resilience Fund: Councils can administer this new fund to support low-income households struggling with essentials.
- Crisis payment: A new scheme to support low-income households that have experienced a financial shock or are at risk of entering crisis.
- Housing payment: A new initiative to provide financial support towards housing costs for those in need.
- Budgeting advance loans: Interest-free loans for people on universal credit facing an emergency lack of money.
- Charitable grants: A wide range of grants available for those struggling financially, although eligibility criteria and funding are limited.
- Energy provider help: Many energy suppliers offer assistance for those struggling with their bills, including free devices like electric blankets.
- Social tariffs: Reduced rates for broadband and water bills for eligible households.
- Council tax reduction: Discounts of up to 100% available for those meeting certain criteria or on certain benefits.
- Free childcare: 30 hours of free childcare for working parents for children up to the age of four.
However, there are concerns about the future. The energy price cap, which is set to increase by £221 a year to £1,862 from July, is a cause for concern. Many experts recommend fixed tariff energy deals, but the market has seen fewer of these in recent months.
The DWP has not announced any continuation of the cost of living payment scheme, which ran between 2022 and 2024. This leaves many households vulnerable to further financial shocks.
In conclusion, the cost of living crisis is far from over, and the impact on households is already being felt. It's crucial that households claim all the support they are entitled to and that the government continues to provide financial assistance to those in need. The future looks uncertain, but by working together, we can weather the storm and build a more resilient society.
