Heading into September, the cost of living remains at the forefront of many people’s minds across the UK.
A rise in inflation to 2.9 per cent in July means prices are once again beginning to rise, with fears of a costly winter on the horizon.
Back-to-back heatwaves have meant that rising electricity prices haven’t hit households as hard as feared this summer, but a forecast rise to the energy price cap for the winter months means that budgets could be stretched further.
Andy Burnham has said that tackling the cost of living is one of the main priorities of his government. The new prime minister has announced a cut to energy bills and bus fares as part of his drive, which will provide some relief to struggling households.
However, concerns remain around the disruption caused by the US-Iran war and record-breaking heatwaves which have plunged large parts of the UK into drought.
Both threaten to bring knock-on effects to the price of essentials such as energy and food, as spiking oil prices and poor domestic crop yield drives up supplier costs.
A record 7.4 million households are now unable to afford at least one essential item, recent research by the Joseph Rowntree Foundation found, up from 7.1 million a year ago.
Against this difficult economic backdrop, households should claim all the support they are entitled to. There are now around 24 million people in the country claiming some combination of Department for Work and Pensions (DWP) administered benefits, which include those drawing a state pension, representing around one in three people.
Yet research by Policy in Practice shows that £24bn worth of benefits goes unclaimed every year – you can use its helpful calculator to work out what you might be entitled to.
Are you struggling with the DWP or the cost of living? Share your story: albert.toth@independent.co.uk
Here is an overview of the financial support available to households this September and key dates for benefit and state pension recipients to look out for:
Benefit payment dates in September
Benefit payments will go out as usual for the most part in September, as there are no bank holidays to be aware of. These include:
- Universal credit
- State pension
- Pension credit
- Child benefit
- Disability living allowance (DLA)
- Personal independence payment (PIP)
- Attendance allowance
- Carer’s allowance
For more information on how and when state benefits are paid, visit the government’s website.
The DWP has now completed its migration of all ‘legacy benefits’ to universal credit, it confirmed to The Independent in July, with just a few claimants remaining on the old system in exceptional circumstances.
Are you having issues with universal credit, PIP, or any other benefit? Get in touch via email: albert.toth@independent.co.uk
Pension payment dates in September
The basic state pension is paid straight into bank accounts, similar to how benefits are paid. It is usually paid every four weeks, with the exact day you receive it corresponding to the last two digits of your national insurance (NI) number.
Here’s when you should be paid based on those numbers:
- 00 to 19: Monday
- 20 to 39: Tuesday
- 40 to 59: Wednesday
- 60 to 79: Thursday
- 80 to 99: Friday
When will benefit rates go up?
In April 2026, all universal credit claimants received an above-inflation income boost of around 6.2 per cent to the standard allowance. For a single person over 25, this is a £6 per week increase, rising from £92 to £98.
For couples with one or both partners over 25, it was an increase of £9 per week, rising from £145 to £154.
Most other benefits were uprated by September’s inflation rate alone, increasing by 3.8 per cent. This included PIP, DLA, attendance allowance, carer’s allowance, ESA and more.
However, at the same time, the weekly payment rate for the health-related element of universal credit for new claimants was cut from £105 to £50. The rate for existing claimants will also be frozen until 2029.
This is a reduction of more than £200 a month, cutting the additional rate by around half.
The state pension rose by 4.8 per cent from April in line with annual earnings growth. This will bring the weekly amount to £241.05.
Other help available
Crisis and Resilience Fund
From April, councils have been able to administer Labour’s new ‘Crisis and Resilience Fund’, designed to support low-income households at times when affording the essentials becomes a struggle.
It will replace both the household support fund and discretionary housing payments.
Crisis payment
The first part of the new scheme is a ‘crisis payment’ to support low-income households that have experienced a financial shock, or are at risk of entering crisis.
As with the household support fund, councils will continue to have discretion over the exact eligibility criteria. However, the government’s guidance says it should not be limited just to those in receipt of benefits.
The DWP has asked that councils take a ‘cash-first’ approach to the crisis payment, meaning cash payments should be awarded unless there is a fair reason not to do so.
In March, it confirmed it was giving local authorities more funding through to support those affected by rising heating oil prices.
Housing payment
A new ‘housing payment’ has also been introduced across the UK, aimed at providing financial support towards housing costs for those in need.
This will usually be related to rent, such as needing rent in advance, a rental deposit, or a shortfall. It could also cover a lump sum associated with housing, like the cost of moving.
Unlike the crisis payment, the housing payment will be restricted to those in receipt of certain benefits. These are either housing benefit or universal credit with the housing element for rental costs. However, DWP says those who do not qualify but are still in need could be considered for a crisis payment instead.
Budgeting advance loans
The government offers a “budgeting advance loan” for people on universal credit who face an emergency lack of money. The loan has a maximum repayment period of two years.
These loans are interest-free and are automatically deducted from universal credit payments. You can borrow an ‘advance’ of up to:
- £348 if you’re single
- £464 if you’re part of a couple
- £812 if you or your partner claims child benefit
Following Labour’s 2024 Budget, a new cap was introduced on the amount the DWP can deduct from benefit payments to repay loans and debts, including budgeting advance loans.
Since April 2025, deductions from universal credit have been capped at 15 per cent of the standard allowance, down from 25 per cent.
Charitable grants
If you are struggling financially, you may be eligible for certain charitable grants. There is a wide range of grants available depending on your circumstances.
However, these grants will typically require you to meet specific criteria and will only be able to offer limited funds.
Charitable grants are available for people who are disabled or ill, carers, bereaved, unemployed, students, and for many other reasons. The charity Turn2us has an online tool to search for grants which may be available to some.
Energy provider help
A number of energy suppliers offer help for those struggling with their energy bills. These include British Gas, Scottish Power, EDF, E.ON, OVO and Octopus. It is worth contacting your energy provider to find out if you are eligible.
Some also offer free devices like electric blankets for households with vulnerable residents to keep warm.
Social tariffs for broadband and water
For those struggling with household costs, social tariffs are available for both broadband and water bills. This will mean a reduced rate for certain eligible households.
For water, every company operating in the UK has a social tariff by law. However, the amount on offer can vary between regions and, because water providers can’t be chosen like energy providers, the support has been criticised as a “postcode lottery”.
For instance, some offer as much as 90 per cent off bills, while others cap support at a 20 per cent reduction.
To find out what support your water company offers, it is worth checking on its website or contacting the helpline. In all cases, households will need to be deemed to be on a low income and/or in receipt of certain benefits.
Similarly, many broadband providers offer social tariffs to those on certain benefits like universal credit or pension credit.
Council tax reduction
If you meet certain criteria or are on certain benefits, you may be able to apply for a discount on your council tax of up to 100 per cent (this is sometimes called council tax support).
Your local council may still be able to offer you a discretionary reduction if you can demonstrate you are facing severe hardship and can’t afford to pay your council tax.
To apply for a council tax reduction, contact your local council via the government’s website.
Up to 30 hours of free childcare
From 1 September 2025, all working parents in the UK became entitled to 30 hours of free childcare for children up to the age of four. This concluded a gradual set of expansions that began in April 2024.
Parents must apply online and reconfirm their eligibility every three months, in time for each school term. Working parents can also apply for tax-free childcare, giving back 20p for every 80p you put towards childcare, up to a maximum of £500 a year.
The next deadline is 31 August.
Winter energy support schemes
To help prepare for the colder months, there are several targeted schemes to be aware of for qualifying households:
Warm Home Discount
Around six million households will receive an automatic £150 cut to their electricity bills this winter through the government’s Warm Home Discount scheme.
In England and Wales, households must be in receipt of certain means-tested benefits to qualify, including Housing Benefit, Pension Credit and Universal Credit.
Winter Fuel Payment
Under the new rules, the Winter Fuel Payment provides pensioners with a taxable income of under £35,000 with between £100 and £300 towards heating costs. This is paid automatically in November and December.
Cold Weather Payments
Low-income households are paid £25 for every consecutive seven-day period of freezing weather (0C or below) in their area between November and March. Nearly 1.5 million households received a payment last winter.
Energy price cap: Is it going up?
Ofgem’s energy price cap increased by £221 a year to £1,862 from July. The 13 per cent increase marks the highest level in over two years, triggered by spiking oil prices caused by the US-Iran war.
The energy price cap is the maximum amount suppliers can charge you for each unit of energy if you’re on a standard variable tariff. That includes most households. It is expressed as an annual bill for an average home.
The energy regulator later updated its methodology to calculate the cap in July, reflecting lower average usage levels, which means the actual cap is expected to be £1,663.
Experts from Cornwall Insight have predicted that the cap will rise by four per cent in October. This would bring it to £1,941 under the old definition – a three year high – or £1,729 under the new one.
Many experts, including Ofgem itself, recommend households consider a fixed tariff energy deal if possible. However, the US-Iran war has seen fewer of these on the market than in previous years.
The energy regulator is expected to announce the next price cap, covering October to December, on 26 August 2026.
Will there be another cost of living payment in 2026?
The DWP has not announced any continuation of the cost of living payment scheme that ran between 2022 and 2024. The final payment should have been made to eligible households between 6 February and 22 February 2024.
Mental health support
- In the UK and Ireland, Samaritans can be contacted 24 hours a day, 365 days a year. You can call them for free on 116 123 or visit samaritans.org.
- Mind runs a support line on 0300 102 1234 which provides a safe and confidential place to talk about how you’re feeling. There is also an information line on 0300 123 3393 for nearby support, and a welfare benefits line on 0300 222 5782 to support the mental health of those navigating the benefits system
- Disability charity Scope has a forum where people can have supportive chats with others going through the same experiences
- The NHS offers an online mental health triage service
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