The UK’s cost of living crisis continues to strain households, with inflation rising to 2.3% in October 2024, the steepest spike in two years. Higher energy bills have driven up costs for essentials, including groceries, housing, and utilities, leaving many struggling to make ends meet. Even with promises from the government to tackle the crisis, challenges persist, especially for low-income families. Below, we outline key financial support options available this December and the critical dates to keep in mind.
Benefits Payments
Most benefits and pension payments will be made as usual in December, except for Christmas Day, which falls on a Monday. Payments scheduled for December 25 will be issued on Friday, December 22.
Benefits Paid as Usual
- Universal Credit
- State Pension
- Pension Credit
- Child Benefit
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Attendance Allowance
- Carer’s Allowance
- Employment Support Allowance (ESA)
- Income Support
- Jobseeker’s Allowance
For more information on payment schedules or benefit eligibility, visit the government website. Research suggests that £23 billion in benefits go unclaimed yearly. Tools like the Policy in Practice calculator can help determine your eligibility.
Household Support Fund
The Household Support Fund (HSF) has been extended until March 2025, providing local councils with funds to assist vulnerable households. Councils can use the HSF for:
- Cash grants
- Supermarket vouchers
- Energy bill support
Visit your local council’s website to learn how to apply. Charities like End Furniture Poverty also provide tools to identify available assistance in your area.
Budgeting Advance Loans
For those on Universal Credit, the government offers interest-free budgeting advance loans to manage emergency expenses. These loans are deducted from future Universal Credit payments, with repayment capped at 15% of the standard allowance starting in April 2025.
| Loan Amount | Maximum Borrowable |
|---|---|
| Single Applicant | £348 |
| Couple | £464 |
| With Children | £812 |
Charitable Grants
A wide range of charitable grants is available for individuals facing financial hardship. Eligibility depends on your circumstances, such as being unemployed, disabled, or a carer. Use the Turn2us online tool to search for grants tailored to your needs.
Energy Provider Support
Many energy providers, such as EDF, Scottish Power, E.ON, and Octopus, offer support for struggling households.
- British Gas Energy Trust: Provides grants of up to £2,000, available to customers of any provider.
Contact your energy provider or visit the British Gas Energy Trust website to check eligibility.
Council Tax Reduction
Eligible individuals can apply for up to a 100% discount on council tax. Some councils also offer discretionary reductions for those facing extreme financial hardship. Applications can be submitted through your local council’s page on the government website.
Warm Home Discount
This £150 discount is automatically applied to eligible electricity bills for low-income households or those receiving the guarantee credit element of Pension Credit.
Free Childcare Expansion
Working parents are eligible for 30 hours of free childcare per week for children aged 3 to 4. Recent expansions include:
- 15 hours of free childcare for children aged 2 years (from April 1).
- Eligibility from 9 months (from September 1).
By September 2025, all children under 5 will be entitled to 30 hours of free childcare. Applications and eligibility reconfirmation are required every three months via the government website.
Benefit Increases
From April 7, 2025, all benefits will increase by 1.7%, in line with September’s Consumer Price Index (CPI) figure.
Benefits Affected
- Universal Credit
- Personal Independence Payment (PIP)
- Disability Living Allowance (DLA)
- Attendance Allowance
- Carer’s Allowance
- Employment Support Allowance (ESA)
While some campaigners urged for larger increases to counter previous inflation spikes, the announced 1.7% rise offers modest relief to millions.
Energy Price Cap
From October to December 2024, Ofgem’s energy price cap increased by 10%, rising from £1,568 to £1,717 annually for the average household. This cap limits the cost of energy for those on standard variable tariffs but reflects higher wholesale energy prices.
The UK’s cost of living crisis continues to challenge households across the country. While government initiatives provide some relief, many families still face significant financial pressure. Take advantage of the support options available, from benefits and grants to energy assistance and childcare programs. For those struggling to navigate these resources, charities and local councils offer valuable tools and guidance.
FAQs
What is the Household Support Fund?
The Household Support Fund helps vulnerable households with cash grants or vouchers.
When will benefit rates increase?
Benefits will increase by 1.7% starting from April 7, 2025.
What is the energy price cap?
It’s the maximum cost of energy for standard variable tariffs, now at £1,717.
How can I get a budgeting advance loan?
You can apply through your Universal Credit account if facing an emergency.
Who qualifies for the warm home discount?
Low-income households or those on Pension Credit may receive £150 off their bill.
