As the year reaches its midpoint, millions of UK households face intensified cost of living pressures, exacerbated by the ongoing US-Iran conflict disrupting global oil trade and driving up prices for essentials like energy and food. Inflation fell to 2.8% in April, down from 3.3% in March, but experts warn this decline may be short-lived, with some predicting a spike 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 think tank reports that 55% of households in poverty now include at least one working person. Against this backdrop, around 24 million people—one in three—claim some form of Department for Work and Pensions (DWP) benefit, including state pension.
Research by Policy in Practice shows £24bn in benefits goes unclaimed annually. Households are urged to check their eligibility using the organisation’s online calculator. Key benefit payment dates for June 2026 remain unchanged as there are no bank holidays; payments include universal credit, state pension, Personal Independence Payment (PIP), Disability Living Allowance (DLA), Attendance Allowance, Carer’s Allowance, and Employment and Support Allowance (ESA).
In April 2026, universal credit standard allowances rose by 6.2% above inflation: for single claimants over 25, the weekly rate increased from £92 to £98; for couples over 25, from £145 to £154. Most other benefits, including PIP and DLA, increased 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% in April, bringing the weekly amount to £241.05. Additionally, Labour’s new Crisis and Resilience Fund, administered by councils from April, replaces the household support fund and discretionary housing payments. It offers crisis payments to low-income households facing financial shocks, with councils setting eligibility criteria.
