In October 2024, the financial struggles faced by millions of people across the UK continue to persist as the cost of living crisis rages on. The relentless inflation of recent years has led to soaring prices for essential items such as household bills, groceries, and rents, pushing many families to the brink.
While the Bank of England reported a slight decrease in inflation to 2.2 percent in August from the peak of 11.1 percent in October 2022, the reality is that costs are still rising, albeit at a slower pace. This has left low-income households in a precarious situation, with many struggling to make ends meet.
Recent research from The Trussell Trust revealed that nearly half of Universal Credit recipients ran out of food in the previous month, highlighting the dire circumstances faced by many families. Additionally, absolute poverty has been on the rise for two consecutive years, with almost a million more people living in poverty in 2022/23 compared to the previous year.
In response to these challenges, the new Labour government has pledged to address the underlying causes of the cost of living crisis. Work and Pensions Secretary Liz Kendall has unveiled the ‘Back to Work’ plan, which aims to tackle economic inactivity and boost employment opportunities.
As Chancellor Rachel Reeves prepares to announce her first budget, experts anticipate tax increases and spending cuts to be on the agenda. This comes at a time when financial support for low-income families is more crucial than ever.
Throughout October, various benefits and pension payments will be disbursed as usual, providing some relief to those in need. Recipients can expect to receive Universal Credit, state pensions, pension credit, child benefit, disability living allowance, and other forms of support.
Moreover, the Household Support Fund, initially created by the Conservatives, will be extended by the Labour government until March 2025. This fund offers financial assistance to vulnerable households through local councils, with support ranging from cash grants to energy bill assistance.
In addition to government support, individuals facing financial hardship can explore other avenues for assistance. Budgeting advance loans, charitable grants, energy provider assistance, and council tax reductions are among the resources available to those in need.
Looking ahead, the energy price cap is set to increase by 10 percent, leading to higher energy bills for households across the country. The Labour government is expected to introduce significant changes to benefits and pensions, with a focus on making work pay and tackling poverty.
While these measures aim to address the challenges faced by low-income families, the road to economic recovery remains long and arduous. As the government navigates the complexities of the cost of living crisis, it is imperative that support and assistance are readily available to those who need it most.
