January 2026 funds dates for PIP, advantages and pensions plus price of residing assist

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Your assist makes all of the distinction. Learn extra As the top of the 12 months attracts nearer, larger payments mixed with decrease temperatures signifies that many have been going through elevated prices within the method to 2026.

For thousands and thousands throughout the nation, managing the price of residing stays a each day wrestle as family incomes wrestle to maintain up with rising costs.

In welcome information, inflation dropped sharply to three.2 per cent in November, down from 3.6, helped largely by the falling price of clothes and meals. However this does simply imply that costs are rising much less shortly – not falling – they usually stay persistently excessive within the face of stagnant wages.

On the identical time, exorbitant family payments imply thousands and thousands are grappling with money owed to afford the necessities.

Round 14 million adults are going with out meals as a result of they can't afford it, latest analysis by the Trussell Belief discovered. In the meantime, vitality arrears have greater than doubled over the previous 5 years, rising to £4.4bn by the top of June.

Anti-poverty charity the Joseph Rowntree Basis has stated that low-income households within the UK are on the right track for the worst fall in residing requirements on file by the following election in 2029.

Towards this tough financial backdrop, it can be crucial that households declare all of the assist they're entitled to. There at the moment are round 24 million folks within the nation claiming some mixture of DWP-administered advantages, which embody these drawing a state pension, representing round one in three folks.

<img src="https://static.independent.co.uk/2025/08/21/00/6ede8e204820d7f1cbb034277cd6ff81Y29udGVudHNlYXJjaGFwaSwxNzU1NzYwMjU0-2.79444091.jpg" srcset="https://static.independent.co.uk/2025/08/21/00/6ede8e204820d7f1cbb034277cd6ff81Y29udGVudHNlYXJjaGFwaSwxNzU1NzYwMjU0-2.79444091.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2025/08/21/00/6ede8e204820d7f1cbb034277cd6ff81Y29udGVudHNlYXJjaGFwaSwxNzU1NzYwMjU0-2.79444091.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="The state pension is expected to rise by 4.7 per cent from next April in line with annual earnings growth" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

The state pension is anticipated to rise by 4.7 per cent from subsequent April consistent with annual earnings progress (PA) But new analysis by Coverage in Follow reveals that £24bn value of advantages goes unclaimed yearly – you need to use its useful calculator to work out what you could be entitled to.

Are you fighting the DWP or price of residing this Christmas? Share your story: albert.toth@unbiased.co.uk

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Right here is an summary of the monetary assist obtainable to households this January and key dates for profit and state pension recipients to look out for:

Profit cost dates in January

For essentially the most half, profit funds can be going out as regular in January. These embody:

Common credit score State pension Pension credit score Youngster profit Incapacity residing allowance (DLA)Private independence cost (PIP) Attendance allowance Carer’s allowance Employment assist allowance (ESA)Earnings assist Jobseeker’s allowance Nevertheless, there may be one key financial institution vacation to concentrate on: 1 January (New Years’ Day). Anybody attributable to obtain a cost on today ought to as a substitute obtain it on Wednesday 31 December (New 12 months’s Eve).

There are some related adjustments round Christmas. Anybody due a cost on Thursday 25 December (Christmas Day) ought to as a substitute obtain it on Wednesday 24 December (Christmas Eve). Likewise, anybody due a cost on Friday 26 December (Boxing Day) must also obtain it on Christmas Eve.

For extra info on how and when state advantages are paid, go to the federal government’s web site.

The DWP is aiming to finish the migration of all “legacy advantages” to common credit score by January 2026. These receiving tax credit, revenue assist, jobseeker’s allowance, and housing profit ought to have obtained a discover about shifting to common credit score already.

Are you having points with PIP, common credit score, or some other profit? Get in contact through electronic mail: albert.toth@unbiased.co.uk

Pension cost dates in January

The fundamental state pension is paid straight into financial institution accounts, equally to how advantages are paid. It's normally paid each 4 weeks, with the precise day you obtain it akin to the final two digits of your nationwide insurance coverage (NI) quantity.

Right here’s when you have to be paid primarily based on these numbers:

00 to 19: Monday 20 to 39: Tuesday 40 to 59: Wednesday 60 to 79: Thursday 80 to 99: Friday The identical financial institution vacation cost date adjustments that apply to most advantages can even apply to state pension funds.

When will profit charges go up?

In April 2026, all common credit score claimants will obtain an above-inflation revenue increase of round 6.2 per cent to the usual allowance. For a single particular person over 25, this can be a £6 per week enhance, rising from £92 to £98.

For {couples} with one or each associate over 25, it is going to be a rise of £9 per week, rising from £145 to £154.

Most different advantages ought to be uprated by September’s inflation fee alone, rising by 3.8 per cent. This contains PIP, DLA, attendance allowance, carer’s allowance, ESA and extra.

Nevertheless, on the identical time, the month-to-month cost fee for the health-related component of common credit score for brand spanking new claimants can be lower from £105 to £50. The speed for current claimants can even be frozen till 2029.

This can be a discount of over £200 a month, slicing the extra fee by round half. This implies it's advisable for anybody who thinks they could be eligible to use as quickly as they will.

The state pension will to rise by 4.8 per cent from subsequent April consistent with annual earnings progress, the federal government has confirmed. This may convey the weekly quantity to £241.05.

For extra details about the brand new profit charges, you'll be able to learn The Unbiased’s information.

Different assist obtainable

Budgeting advance loans

The federal government affords a “budgeting advance mortgage” for folks on common credit score who face an emergency lack of cash. The mortgage has a most compensation interval of two years.

These loans are interest-free and are routinely deducted from common credit score funds. You may borrow an “advance” of as much as:

£348 when you’re single £464 when you’re a part of a pair £812 when you or your associate claims baby profit Following Labour’s 2024 Price range, a brand new cap was launched on the quantity the DWP can deduct from profit funds to repay loans and money owed, together with budgeting advance loans.

Starting in April 2025, deductions from common credit score have been capped at 15 per cent of the usual allowance, down from 25 per cent.

Discretionary Housing Cost

Households can apply to their council for a discretionary housing cost (DHP), which affords monetary assist to go in direction of lease or housing prices.

You may solely get a DHP if you're in receipt of housing profit or the housing component of common credit score. It may cowl housing prices for a lease shortfall, lease deposits and lease upfront if that you must transfer residence.

Actual eligibility and the funds obtainable are selected a council-by-council foundation, so you will want to get in contact together with your native authority to search out out extra.

Family Assist Fund

The family assist fund (HSF), distributed by native councils, affords important help to these going through monetary hardship, complementing commonplace advantages and grants.

As a part of this authorities initiative, eligible households all through the UK can entry assist reminiscent of important home equipment, contributions in direction of utility payments, and direct money funds reaching as much as £300.

Native authorities are free to determine the way to allocate their HSF funding to swimsuit households of their space, so precisely what is offered will range. To use, households have to contact their council (most provide an internet type).

This nationwide programme is about to run till March 2026. The federal government has dedicated £1bn in funding to transition it right into a “Disaster and Resilience Fund” which is able to substitute the DHP.

Charitable grants

In case you are struggling financially, chances are you'll be eligible for sure charitable grants. There may be a variety of grants obtainable relying in your circumstances.

Nevertheless, these grants will usually require you to satisfy particular standards and are solely in a position to provide restricted funds.

Charitable grants can be found for people who find themselves disabled or unwell, carers, bereaved, unemployed, college students, and for a lot of different causes. The charity Turn2us has an internet instrument to seek for grants which can be obtainable to some.

<img src="https://static.independent.co.uk/2025/08/26/14/37/01K3JSG3R7NWNM6GK9C26E3PXX.jpeg" srcset="https://static.independent.co.uk/2025/08/26/14/37/01K3JSG3R7NWNM6GK9C26E3PXX.jpeg?quality=75&width=320&crop=3%3A2%2Csmart&trim=0%2C128%2C0%2C128&auto=webp 320w, https://static.independent.co.uk/2025/08/26/14/37/01K3JSG3R7NWNM6GK9C26E3PXX.jpeg?quality=75&width=640&crop=3%3A2%2Csmart&trim=0%2C128%2C0%2C128&auto=webp 640w" loading="lazy" alt="Some energy suppliers offer assistance to those who aren’t able to afford their bills, including Octopus and British Gas" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

Some vitality suppliers provide help to those that aren’t in a position to afford their payments, together with Octopus and British Gasoline (PA) Vitality supplier assist

Various vitality suppliers provide assist for these fighting their vitality payments. These embody British Gasoline, Scottish Energy, EDF, E.ON, OVO and Octopus. It's value contacting your vitality supplier to search out out if you're eligible.

Some additionally provide free units like electrical blankets for households with susceptible residents to maintain heat.

Social tariffs for broadband and water

For these fighting family prices, social tariffs can be found for each broadband and water payments. This may imply a diminished fee for sure eligible households.

For water, each firm working within the UK has a social tariff by regulation. Nevertheless, the quantity on provide can range between areas and, as a result of water suppliers can’t be chosen like vitality suppliers, the assist has been criticised as a “postcode lottery”.

As an illustration, some provide as a lot as 90 per cent off payments, whereas others cap assist at a 20 per cent discount.

To search out out what assist your water firm affords, it's value checking on its web site or contacting the helpline. In all circumstances, households will should be deemed to be on a low revenue and/or in receipt of sure advantages.

Equally, many broadband suppliers provide social tariffs to these on sure advantages like common credit score or pension credit score. Regulator Ofcom has a information to what's on provide.

Council tax discount

When you meet sure standards or are on sure advantages, you could possibly apply for a reduction in your council tax of as much as 100 per cent (that is typically known as council tax assist).

Your native council should be capable of give you a discretionary discount when you can exhibit you're going through extreme hardship and may’t afford to pay your council tax.

To use for a council tax discount, contact your native council through the federal government’s web site.

As much as 30 hours of free childcare

From 1 September 2025, all working dad and mom within the UK turned entitled to 30 hours of free childcare for youngsters as much as the age of 4. This concludes a gradual set of expansions that started in April 2024.

Dad and mom should apply on-line and reconfirm their eligibility each three months, in time for every faculty time period. Working dad and mom may apply for tax-free childcare, giving again 20p for each 80p you set in direction of childcare, as much as a most of £500 a 12 months.

Vitality value cap: Is it going up?

Ofgem’s vitality value cap rose by two per cent in October, from £1,720 to £1,755. The £35 rise comes after a extra sizeable seven per cent lower for July to September, from £1,849 to £1,720.

For 1 January to 31 March 2026, it'll go as much as £1,758, Ofgem has confirmed – a rise of 0.2 per cent.

The vitality value cap is the utmost quantity vitality suppliers can cost you for every unit of vitality when you’re on a regular variable tariff. That features most households. It's expressed as an annual invoice for a median residence.

Many specialists – together with Ofgem itself – are recommending households think about a set tariff vitality deal, with many available on the market providing decrease than the value cap fee.

Will there be one other price of residing cost in 2025?

The DWP haven't introduced any continuation of the Price of Residing Cost scheme that ran between 2022 and 2024. The ultimate cost ought to have been made to eligible households between 6 February and 22 February 2024.

Psychological well being assist

Within the UK and Eire, Samaritans may be contacted 24 hours a day, three hundred and sixty five days a 12 months. You may name them without spending a dime on 116 123, electronic mail them at jo@samaritans.org, or go to samaritans.org to search out your nearest branchMind runs a assist line on 0300 102 1234 which offers a secure and confidential place to speak about the way you’re feeling. There may be additionally an info line on 0300 123 3393 for close by assist, and a welfare advantages line on 0300 222 5782 to assist the psychological well being of these navigating the advantages systemDisability charity Scope has a discussion board the place folks can have supportive chats with others going via the identical experiencesThe NHS affords an internet psychological well being triage service [ad_2] Source link