In mid-August, the UK saw a rare wave of positive economic news, with wage growth rising at a record pace, inflation falling to 6.8% and food prices starting to fall, according to the Office for National Statistics.
While these may suggest that the cost of living is finally easing, this positive stance reflects a stubborn change in core inflation at 6.9%, which leaves volatile food and energy prices out of the equation. It masks the fact that it is not, and some experts warn it will be affected if there is a rise. It could be “swallowed” by rising borrowing costs.
Inflation remains well below its 2% target and the Bank of England is almost certain to raise interest rates again at its next meeting in September to try to keep inflation under control.
This will likely raise the current base rate of 5.25% to 5.5%, prompting many people who are already struggling to pay their mortgages, especially those who follow the central bank’s lead to tracker mortgages and standard floating rate mortgages. It is an even more undesirable development for those who do.
“Most people have yet to feel the full contraction in interest rates,” said Nicholas Hayett, investment manager at Wealth Club. “When interest rates fall,” he said. he warned. “We are not out of the forest yet.”
With that in mind, let’s take a look at the state financial assistance available to households this September.
Payment for support
Millions of low-income households are receiving more money from the government, even though Rishi Sunak’s energy bill assistance scheme (an initiative to distribute £400 in monthly installments of £66 and £67) expired at the end of March. You will receive living expenses support. This year the total value is up to £1,350.
Eight million eligible means-tested benefit claimants, including those on universal credits, pension credits and tax credits, will receive £300 installments of their next cost of living as part of a program launched this spring. and the money will be donated directly. The Department of Work and Pensions (DWP) has announced that bank accounts will be opened in three phases. The total payment will be £900.
An additional £150 will be given to more than 6 million disabled people and £300 to more than 8 million pensioners.
here it is payment window It has been announced so far and a more precise date is expected later in the year.
- £301 – first cost of living payment – issued between 25th April and 17th May (2nd May – 9th May for those receiving tax credits but no other low income benefits) until date)
- £150 – Disability Allowance – 20th June to 4th July 2023
- £300 – Second cost of living payment – Fall 2023
- £300 – Payments to Pensioners – Winter 2023/4
- £299 – 3rd cost of living payment – Spring 2024
Benefits of going out as usual
The usual state aid in the form of stipends and pension payments will also go ahead as usual in September, as there are no scheduled bank holidays that disrupt delivery dates.
Anyone expecting to receive any of the following from DWP can receive their money on any regular date this month.
- universal credit
- national pension
- pension deduction
- Disability living allowance
- Individual Independence Allowance
- Nursing care allowance
- caregiver allowance
- Employment support allowance
- income support
- Job Seeker’s Allowance
For more information on when and how state benefits are paid, visit: government website.
Energy price guarantee expired due to cap reduction
The belated weather improvement expected in September may not be comfortable for everyone, but at least we need to switch on the central heating that cost us so much during the winter just past. sex is greatly reduced.
Government Energy Price Guarantee (EPG) – Introduced a year ago by short-lived Prime Minister Liz Truss, it guarantees that households will pay no more than £2,500 on their electricity and gas bills, meeting Ofgem’s energy price cap. Government subsidized balance owed to providers under (EPC) – extended for another three months by Prime Minister Jeremy Hunt in the March 15 budget.
Mr Hunt was reportedly tempted to increase the EPG to £3,000, which was not a fairly generous offer to ease the state’s burden, but ultimately thought good intentions and guaranteed The period has been extended to April, May and June.
With the EPG finally expiring, consumers will have to pay EPC fees again, but Ofgem has set the EPC fee for the third quarter starting July 1 at £2,074 and set it for the second quarter at £3,280. significantly reduced from the pound. Households were protected by government overriding security interventions.
The 17% decline reflects the recent decline in wholesale energy prices (the amount energy companies pay for electricity and gas before they supply homes), up from the eye-popping prices of the past two years. Despite a significant decline, the figure is still more than £1,000 a year above pre-pandemic levels.
As for what’s next, consultancy Cornwall Insight predicts that the fall of July will look something like this: It then fell further in October.In this case, the typical annual bill is expected to be £1,860.66.
Unfortunately, Cornwall believes general bills will rise again to £1,958.81 in January 2024, with energy prices returning to pre-coronavirus levels by the end of 2020 at the earliest. I don’t expect to go back.
Geopolitical events like the war in Ukraine may continue to have a negative impact as the UK relies on energy imports, and prices may continue to be subject to wholesale market volatility, customers said. warned to.