As the UK reaches the halfway point of 2026, many households are feeling increased cost of living pressures due to ongoing economic uncertainty. The US-Iran war has disrupted global oil trade, driving up prices for essentials like energy and food. While inflation fell to 2.8% in April, down from 3.3% in March, experts warn this may be short-lived, with some predicting a rise to 4% by year-end.
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 contain at least one working person. Against this backdrop, around 24 million people in the UK claim some form of Department for Work and Pensions (DWP) benefit, including state pension, representing about one in three people.
Benefit payments will proceed as usual in June 2026, 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 the recipient's National Insurance number.
In April 2026, Universal Credit claimants received a 6.2% increase to the standard allowance, raising weekly payments for a single person over 25 from £92 to £98, and for couples from £145 to £154. Most other benefits, including PIP, DLA, Attendance Allowance, and Carer’s Allowance, were uprated 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 rose by 4.8% from April, bringing the weekly amount to £241.05. Additionally, councils have begun administering Labour's new Crisis and Resilience Fund, which replaces the Household Support Fund and Discretionary Housing Payments. This fund includes crisis payments for low-income households facing financial shocks, with eligibility criteria set locally.
