As the UK reaches the halfway point of 2026, many households are feeling the strain of rising costs amid ongoing economic uncertainty. The conflict in the Middle East has disrupted global oil supplies, driving up prices for essentials like energy and food. While inflation fell to 2.8% in April, experts warn it could spike to 4% by year-end, adding further pressure on families.
According to the Cost of Living Action group, 63% of Britons have cut back on essentials to cope with rising prices. The Resolution Foundation reports that 55% of households in poverty now include at least one working person. Against this backdrop, claiming all entitled benefits is crucial. Around 24 million people in the UK receive some form of Department for Work and Pensions (DWP) support, yet £24 billion in benefits goes unclaimed annually, according to Policy in Practice.
In June, benefit payments will proceed as usual with no bank holidays affecting schedules. The DWP has largely completed the migration of legacy benefits to Universal Credit, though Employment and Support Allowance and Housing Benefit will remain open until the end of summer for vulnerable claimants. The basic state pension is paid every four weeks, with payment dates determined by the last two digits of your National Insurance number.
From April 2026, Universal Credit claimants received a 6.2% increase to the standard allowance, raising weekly payments to £98 for single people over 25 and £154 for couples. Most other benefits, including PIP, DLA, and Carer's Allowance, rose by 3.8% in line with September's inflation rate. However, the health-related element of Universal Credit for new claimants was cut from £105 to £50 per week, with existing claimants' rates frozen until 2029.
The state pension increased by 4.8% in April, bringing the weekly amount to £241.05. Additionally, councils have launched Labour's new 'Crisis and Resilience Fund', replacing the Household Support Fund and Discretionary Housing Payments. This includes crisis payments for low-income households facing financial shocks, with eligibility criteria set locally.
