As the year reaches its midpoint, many households are feeling the strain of rising costs amid ongoing economic uncertainty. While the April bill increases have settled, new pressures have emerged due to the US-Iran conflict disrupting global oil trade, pushing up prices for essentials like energy and food. The situation remains volatile, with fears that the impact could persist through 2026 and beyond.
Inflation and Economic Impact
Inflation fell to 2.8 per cent in the year to April, down from 3.3 per cent in March. However, experts warn this decline may be temporary, with some predicting a spike to 4 per cent by year-end. According to the Cost of Living Action group, 63 per cent of Britons have cut back on essentials due to rising prices. Meanwhile, the Resolution Foundation reports that 55 per cent of households in poverty now include at least one working person.
Benefit Payment Dates in June
There are no bank holidays in June, so benefit payments will proceed as usual. This includes Universal Credit, State Pension, Pension Credit, Child Benefit, Disability Living Allowance (DLA), Personal Independence Payment (PIP), Attendance Allowance, and Carer's Allowance. For more details, visit the government's website. The DWP has mostly completed migrating legacy benefits to Universal Credit, but Employment and Support Allowance and Housing Benefit will remain open until the end of summer for vulnerable claimants.
State Pension Payment Dates
The basic state pension is paid every four weeks, with the payment day determined by the last two digits of your National Insurance number:
- 00 to 19: Monday
- 20 to 39: Tuesday
- 40 to 59: Wednesday
- 60 to 79: Thursday
- 80 to 99: Friday
Benefit Rate Increases
In April 2026, Universal Credit standard allowance rose by 6.2 per cent. For a single person over 25, this means a £6 weekly increase to £98. For couples over 25, it rose by £9 to £154. Most other benefits, including PIP, DLA, Attendance Allowance, and Carer's Allowance, increased by 3.8 per cent in line with September's inflation rate. However, the health-related element of Universal Credit for new claimants was cut from £105 to £50 per week, with existing claimants' rates frozen until 2029. The state pension rose by 4.8 per cent to £241.05 per week.
Additional Support Available
Crisis and Resilience Fund
From April, councils administer the new Crisis and Resilience Fund, replacing the Household Support Fund and Discretionary Housing Payments. It includes a crisis payment for low-income households facing financial shocks, with councils having discretion over eligibility. The DWP encourages a cash-first approach.
Housing Payment
A new housing payment helps with rent costs, such as deposits or rent in advance, for those on Housing Benefit or Universal Credit with the housing element.
Budgeting Advance Loans
Universal Credit claimants can apply for interest-free budgeting advance loans up to £348 for singles, £464 for couples, or £812 for those with child benefit. Repayments are automatically deducted, capped at 15 per cent of the standard allowance since April 2025.
Charitable Grants
Organisations like Turn2us offer grants for disabled, ill, carers, bereaved, unemployed, and students. Use their online tool to search for available grants.
Energy Provider Help
Suppliers including British Gas, Scottish Power, EDF, E.ON, OVO, and Octopus offer assistance, including free devices like electric blankets for vulnerable households.
Social Tariffs
Broadband and water social tariffs are available for low-income households. Water companies must offer social tariffs by law, but support varies by region. Check with your provider for eligibility.
Council Tax Reduction
You may get up to 100 per cent discount on council tax if you meet criteria or receive certain benefits. Apply through your local council.
Free Childcare
Since September 2025, working parents can access 30 hours of free childcare for children up to age four. Reconfirm eligibility every three months. Tax-free childcare gives back 20p for every 80p spent, up to £500 per year.
Energy Price Cap
Ofgem's energy price cap will rise by £221 to £1,862 per year from July, the highest in over two years due to oil price spikes from the US-Iran war. Consider a fixed tariff if available.
Cost of Living Payments
The DWP has not announced further cost of living payments beyond the 2022-2024 scheme, which ended in February 2024.
Mental Health Support
Samaritans are available 24/7 at 116 123 or jo@samaritans.org. Mind offers support at 0300 102 1234 and welfare benefits line at 0300 222 5782. Scope provides a supportive online forum. The NHS has an online mental health triage service.
