May is here, meaning some of the bill rises from 'awful April' will likely be settling in for UK households. This time of year is always challenging for finances, as bill payers grapple with higher expenses of the new financial year.
Cost of Living Concerns Persist
Cost of living concerns continue as conflict in the Middle East threatens Britain's economy. The US-Iran war has severely disrupted global oil trade, bringing knock-on effects to essentials like energy and food. The situation remains uncertain, sparking fears that household impacts could persist throughout 2026 and beyond.
Inflation rose in March to 3.3 per cent, a slight 0.3 point rise but indicating a move away from the downward trend of recent months. This suggests household costs have started increasing more quickly, sparking fresh cost of living concerns.
Around two-thirds (63 per cent) of Brits say they have cut back on essentials to handle rising prices, according to the Cost of Living Action group. Meanwhile, 55 per cent of households in poverty now contain at least one working person, the Resolution Foundation think tank revealed.
Benefit Payment Dates in May
Benefit payments will go out as usual in May, except on two bank holidays. Anyone due a payment on Monday 4 May (Early May bank holiday) should instead receive it on Friday 1 May. Similarly, payments due on Monday 25 May (Spring bank holiday) should be sent on Friday 22 May. This includes Universal Credit, state pension, Pension Credit, Child Benefit, Disability Living Allowance (DLA), Personal Independence Payment (PIP), Attendance Allowance, and Carer's Allowance.
The DWP has mostly completed migrating legacy benefits to Universal Credit. However, Employment and Support Allowance and Housing Benefit will not close until 'the end of the summer' to allow vulnerable claimants more time.
Pension Payment Dates in May
The basic state pension is paid every four weeks, with the exact day corresponding to 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
Bank holiday payment changes apply to state pension as well.
Benefit Rate Increases
In April 2026, Universal Credit claimants received an above-inflation boost of around 6.2 per cent to the standard allowance. For a single person over 25, this is a £6 weekly increase (from £92 to £98). For couples over 25, it is £9 per week (from £145 to £154).
Most other benefits (PIP, DLA, Attendance Allowance, Carer's Allowance, ESA) 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 weekly, and existing claimants' rate is frozen until 2029. The state pension rose by 4.8 per cent to £241.05 weekly.
Other Help Available
Crisis and Resilience Fund
From April, councils administer Labour's new fund to support low-income households. It replaces the Household Support Fund and Discretionary Housing Payments. The crisis payment helps those experiencing a financial shock, with councils having discretion but a 'cash-first' approach encouraged.
Housing Payment
A new housing payment supports rent-related costs (advance, deposit, shortfall) for those on Housing Benefit or Universal Credit with housing element. Those not qualifying may get a crisis payment instead.
Budgeting Advance Loans
Interest-free loans for Universal Credit claimants facing emergencies, repayable within two years. Maximum amounts: £348 (single), £464 (couple), £812 (with child benefit). Deductions capped at 15 per cent of standard allowance from April 2025.
Charitable Grants
Various grants for disabled, ill, carers, bereaved, unemployed, students, etc. Use Turn2us online tool to search.
Energy Provider Help
Suppliers like British Gas, Scottish Power, EDF, E.ON, OVO, Octopus offer assistance. Some provide free devices like electric blankets.
Social Tariffs
Broadband and water social tariffs are available for low-income households. Water companies must offer a tariff, but amounts vary (up to 90 per cent off). Broadband providers offer discounts for benefit claimants.
Council Tax Reduction
Up to 100 per cent discount available for those on low income or certain benefits. Contact local council to apply.
Free Childcare
From September 2025, all working parents get 30 hours free childcare for under-fives. Also tax-free childcare (20 per cent back, up to £500 yearly).
Energy Price Cap
Ofgem's cap is £1,641 from April to June 2026 (down £117). Fixed tariffs are recommended, but fewer are available due to the US-Iran war. Ofgem will announce the July-September cap by 27 May, which may increase steeply.
Cost of Living Payments
The DWP has not announced any continuation of the 2022-2024 cost of living payment scheme. The final payment was made in February 2024.
Mental Health Support
Samaritans: 116 123 (free, 24/7). Mind: 0300 102 1234. NHS online triage available. Scope forum for disability support.
