In the UK, millions of individuals rely on government benefits to support their daily living expenses. With the rising costs of essentials, these benefits are crucial for many households.
As of now, approximately 24 million people in the UK are receiving some form of benefit administered by the Department for Work and Pensions (DWP).
These payments have become increasingly vital as inflation continues to outpace income growth.
Economic Outlook for Low-Income Households
Research from the Joseph Rowntree Foundation highlights the grim reality of the UK’s economic situation, revealing that 21% of people (around 14.3 million people) lived in poverty in the 2022/23 period.
Despite various adjustments, such as increases to the state pension, minimum wage, and other benefits, inflation remains a persistent challenge, making it harder for low-income households to keep up with rising bills.
Unclaimed Benefits: An Overlooked Opportunity
A staggering £23 billion in benefits goes unclaimed every year, according to research by Policy in Practice.
This highlights the importance of ensuring households are receiving all the support they are entitled to. Individuals can use the government’s calculator to assess their eligibility for various benefits.
Key Dates for Benefits and Pension Payments in July
The July benefit payment schedule will proceed as usual, with no expected disruptions due to bank holidays. Key benefits include:
- 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 (JSA)
For more details on how and when payments are made, individuals can visit the official government website.
Transition to Universal Credit
By January 2026, the DWP plans to complete the migration of all legacy benefits to Universal Credit. Those receiving tax credits, income support, jobseeker’s allowance, and housing benefit should have already received notices regarding their transition to Universal Credit.
Additionally, Labour’s welfare changes are causing concern. Planned cuts of £5 million to the welfare system are expected, with changes in the Universal Credit rates slated for April 2026, followed by stricter eligibility for PIP claims in November 2025.
Pension Payment Dates in July
The basic state pension is paid directly into recipients’ bank accounts. The payment date depends on the last two digits of the recipient’s National Insurance (NI) number:
- 00 to 19: Monday
- 20 to 39: Tuesday
- 40 to 59: Wednesday
- 60 to 79: Thursday
- 80 to 99: Friday
Benefit Rate Increases: What Has Changed?
In April 2025, benefits were increased by 1.7%, in line with inflation. This applies to working-age benefits such as Universal Credit, PIP, DLA, carer’s allowance, and ESA.
The state pension saw a higher increase of 4.1%, amounting to an £472 rise annually, in accordance with the triple lock policy. The Universal Credit standard allowance will also increase by £7 per week starting in April 2026, but the health element will be frozen until 2029/30.
Available Financial Support for Households
Budgeting Advance Loans
The government offers budgeting advance loans to Universal Credit recipients facing financial emergencies. The maximum loan repayment period is two years, and it is interest-free. Loan amounts are:
- £348 for singles
- £464 for couples
- £812 for those claiming Child Benefit
New caps on DWP deductions will be introduced from April 2025, limiting deductions to 15% of the Universal Credit standard allowance, down from 25%.
Discretionary Housing Payments (DHP)
Households receiving Housing Benefit or the housing component of Universal Credit may qualify for a Discretionary Housing Payment (DHP), which can help cover rent shortfalls, deposits, and rent in advance. However, eligibility varies by local council, so individuals should contact their council for more details.
Household Support Fund (HSF)
The Household Support Fund (HSF), available until March 2026, offers assistance for essential appliances, utility bills, and direct cash payments of up to £300. The government has allocated £1 billion to support this initiative, which will eventually transition into a Crisis and Resilience Fund.
Charitable Grants
Various charitable grants are available for individuals in need, depending on circumstances such as disability, unemployment, or being a carer. Tools like Turn2us help individuals find relevant grants.
Energy Provider Assistance
Many energy suppliers, such as British Gas, Scottish Power, and EDF, offer support for those struggling with energy bills. Households are encouraged to contact their energy providers to explore eligibility for financial assistance.
Council Tax Reduction
Eligible households may apply for a council tax discount of up to 100%. Local councils may also provide discretionary reductions in cases of severe hardship.
Free Childcare
From April 2024, working parents will receive 30 hours of free childcare for children aged 3 to 4. This entitlement will expand further in September 2025, making it available for all children under 5.
Energy Price Cap Update
Ofgem has announced a decrease in the energy price cap from £1,849 to £1,720 for the period July to September 2025, offering a 7% reduction in energy bills.
Future of Cost of Living Payments
The DWP has not announced any further Cost of Living Payments beyond the ones made between 2022 and 2024. The final payment was made to eligible households between 6 February and 22 February 2024.
Financial support from the government remains critical as millions in the UK continue to face financial difficulties amid rising costs.
It is vital for eligible households to make sure they are receiving all the benefits they are entitled to, and the various forms of assistance available, such as loans, housing support, and childcare benefits, can make a significant difference in reducing the financial strain.
FAQs
How can I apply for the Household Support Fund (HSF)?
You can apply for the HSF through your local council, as they manage the distribution of funds in your area.
What changes are coming to Universal Credit in 2026?
Starting in April 2026, Universal Credit will see an above-inflation increase in the standard allowance, and the health element will be frozen until 2029/30.
When will pensioners receive their payments in July?
Pensioners will receive their payments on weekdays based on the last two digits of their National Insurance (NI) number, with payments spread across Monday to Friday.