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Dates for DWP Cost of Living Payments Benefits and Pensions for August



Dates for DWP Cost of Living Payments Benefits and Pensions for August

Dates for DWP Cost of Living Payments Benefits and Pensions for August.In the midst of what should be a more stable summer following the volatility of the global energy market, the UK is still grappling with the aftermath of the pandemic-induced cost of living crisis. While domestic heating bills have finally eased after a prolonged period of exorbitant prices during the winter, the post-pandemic era continues to burden the people of Britain.

Dates for DWP Cost of Living Payments Benefits and Pensions for August

With inflation stubbornly clinging at a high 8.7 percent, a new set of challenges has arisen. Mortgage holders find themselves in a battle against elevated interest rates, and supermarket shelves are marked by inflated prices. The Office for National Statistics (ONS) has revealed that food inflation hit a staggering 18.4 percent in May, painting a grim picture for consumers.

However, there’s a glimmer of hope in the form of Simon Roberts, the CEO of Sainsbury’s. He anticipates a gradual reduction in food prices as retail sales pick up in response to warmer weather. Notably, staple items such as bread, butter, milk, pasta, and meat saw price drops in the second quarter of the year at his supermarket, reflecting improved trading conditions.

Supermarkets Under Scrutiny for Exploitative Fuel Prices

Adding to the distress of a weary public wrestling with economic hardships, supermarkets have faced accusations of profiteering from excessive fuel prices at the pumps. This practice has reportedly led drivers to overpay for petrol and diesel by almost £1 billion over the past year. Such allegations further undermine the morale of a populace already worn down by financial struggles.

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Government Steps In to Provide Relief

In spite of the conclusion of the Energy Bill Support Scheme introduced by Rishi Sunak in March, there is a ray of hope for low-income households. The government has initiated additional support measures worth up to £1,350 per household. Eligible means-tested benefits claimants, encompassing those on universal credit, pension credit, and tax credits, are set to receive £900 in three installments, directly deposited into their bank accounts. Furthermore, individuals with disabilities will receive a separate £150 payment, and pensioners will enjoy an additional £300 boost.

The payment schedule is as follows:

  • £301: First cost of living payment – Issued between April 25 and May 17
  • £150: Disability payment – Scheduled for summer 2023
  • £300: Second cost of living payment – Expected during autumn 2023
  • £300: Pensioner payment – Anticipated in winter 2023/2024
  • £299: Third cost of living payment – Set for spring 2024

Changes in Payment Schedule for the Bank Holiday

August will witness the distribution of the usual state support benefits and pensions payments. However, due to the Summer Bank Holiday on August 28, beneficiaries expecting funds on that date should anticipate the funds to arrive a working day earlier (August 25).

Energy Price Landscape After the Guarantee Expires

As the sweltering summer continues, the need for central heating recedes, offering some respite from the expenses faced during the past winter. The Energy Price Guarantee (EPG), implemented to cap electricity and gas costs for households, expired after being extended by Chancellor Jeremy Hunt. The EPG, introduced by Liz Truss, ensured that households did not pay more than £2,500, with the government covering the remainder under Ofgem’s Energy Price Cap (EPC). The latest EPC rate was set at £2,074 for the third quarter starting July 1, marking a substantial decline from the previous quarter’s £3,280.

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While this 17 percent decrease reflects recent reductions in wholesale energy prices, the figure remains over £1,000 higher than pre-pandemic levels. Consultancy firm Cornwall Insight predicts another decrease in October, bringing the annual bill to £1,976. However, a subsequent rise to £2,045 is projected for January 2024, with energy prices not expected to return to pre-COVID levels before the end of the decade. Volatility in wholesale markets, coupled with the UK’s energy import dependence, means external factors like geopolitical events could continue to impact prices.

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