PIP and Universal Credit set to rise in March 2025: Check out Exact Payment Dates

As spring 2024 approaches, many households are looking forward to warmer weather and lower heating costs after a challenging winter. However, while benefit increases, pension boosts, and wage rises are on the horizon, rising bills in areas like energy, water, and council tax may offset these gains.

In this guide, we will walk you through the key financial changes, support schemes, and important dates to watch in March 2024.

Good News: Income Boosts in March 2024

Several income increases are scheduled for March and April 2024, benefiting both working households and those on benefits or pensions.

1. State Pension Increase

• The State Pension will rise by 4.1 percent in line with the triple lock.
• This means an extra £472 per year for pensioners from April 2025.

2. Minimum Wage Increase (from April 1, 2024)

• The National Minimum Wage will rise by 6.7 percent, giving millions a £1,400 annual pay boost.

3. Benefits Increase (from April 7, 2024)

• All DWP-administered benefits will rise by 1.7 percent, including:
  • Universal Credit
  • Personal Independence Payment (PIP)
  • Attendance Allowance
  • Carer’s Allowance
  • Disability Living Allowance (DLA)

Why only 1.7 percent?
The increase matches September 2024’s inflation rate. Some campaigners argue this is too low, given higher inflation earlier in 2023.

Key Benefit Payment Dates for March 2024

Unlike other months, March 2024 has no bank holidays, so benefit payments will follow their regular schedule:

• Universal Credit: Paid monthly, based on your assessment period.
• Child Benefit: Paid every 4 weeks (or weekly if you’re a single parent).
• State Pension: Paid every 4 weeks based on the last two digits of your National Insurance number:
  • 00–19: Monday
  • 20–39: Tuesday
  • 40–59: Wednesday
  • 60–79: Thursday
  • 80–99: Friday

For more details, visit the UK Government’s benefits payment schedule online.

Government and Local Council Support Available

Several government schemes and local council initiatives are available to help with cost-of-living pressures.

1. Household Support Fund (HSF)

The HSF provides financial assistance through local councils to vulnerable households.

• Assistance might include:
  • Cash grants
  • Supermarket vouchers
  • Energy bill support

Good news:
The HSF was extended until March 2025. Check your local council’s website for eligibility details.

2. Budgeting Advance Loans (Universal Credit)

If you’re on Universal Credit and need emergency funds, you can apply for a Budgeting Advance Loan.

Maximum amounts you can borrow:

• £348 if you’re single
• £464 if you’re part of a couple
• £812 if you have children

New Repayment Rules:
Loan repayments will be automatically deducted from future Universal Credit payments. From April 2025, deductions will be capped at 15 percent of the standard allowance, down from 25 percent.

3. Charitable Grants

Various charities offer financial help to people struggling with bills.

Grants are available for:

• Carers
• Disabled individuals
• Students
• Bereaved families

Visit Turn2us to search for available grants in your area.

4. Energy Bill Assistance

Several energy companies offer support programs, including:

• British Gas Energy Trust: Grants up to £2,000 for customers with any energy provider.
• Scottish Power, EDF, Octopus, and E.ON: Offer discounts and grants for eligible customers.

Contact your energy supplier directly to check eligibility requirements.

5. Council Tax Reduction

If you’re on a low income or certain benefits, you may qualify for a council tax discount of up to 100 percent.

Check your local council’s website or visit the UK Government council tax page to apply.

6. Free Childcare Expansion (April 2024)

From April 1, 2024, working parents can claim:

• 15 hours of free childcare for 2-year-olds (previously only for 3-4-year-olds).
• The program will expand again in September 2025 to cover all children under 5.

The Bad News: Cost Increases on the Horizon

While income boosts offer some relief, households should prepare for several cost increases.

1. Energy Bills

• Ofgem’s Energy Price Cap will rise to £1,738 per year (up 1.2 percent) from January to March 2024.
• Experts predict a further 5–7 percent increase in April 2024.

2. Water Bills

• Water companies across the UK will raise bills by an average of 6 percent from April 2024.

3. Council Tax

• Most local authorities will increase council tax by up to 5 percent in April 2024.

4. Inflation Impact

• Inflation remains high, at 2.5 percent in December 2023, and is not expected to fall below 2 percent until 2027.
• This means prices will continue to rise, even as wages and benefits go up.

How to Check Your Entitlements

Many people miss out on benefits they are entitled to.

Did you know?
£23 billion in benefits went unclaimed in 2023 alone.

Use online calculators like those provided by:

• Policy in Practice
• Turn2us
• EntitledTo

While March 2024 brings positive changes like benefit increases, wage rises, and pension boosts, these gains may be offset by rising household bills.

Take action now by:

• Reviewing your entitlements.
• Exploring available grants and support programs.
• Budgeting for expected cost increases.

By staying informed and proactive, you can better navigate the financial challenges ahead.

SOURCE

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