As we approach the halfway mark of 2026, the cost of living crisis is intensifying, with many households feeling the pinch of financial uncertainty. The conflict in the Middle East has disrupted global oil trade, causing a ripple effect on the prices of essentials like energy and food. While inflation has dropped to 2.8% in the year to April, experts warn that this may be short-lived, with some anticipating a spike to 4% by the end of the year. The situation is particularly dire for those on low incomes, with around two-thirds of Britons having to cut back on essentials to manage rising prices. The Resolution Foundation has revealed that 55% of households living in poverty now contain at least one working person, highlighting the complex challenges faced by many. In this challenging economic landscape, it is crucial for households to claim all the support they are entitled to. The Department for Work and Pensions (DWP) administered benefits, including state pensions, are a vital source of support for millions. However, research by Policy in Practice shows that £24 billion worth of benefits goes unclaimed every year. This is where resources like the helpful calculator on the website can be invaluable. The DWP has made significant progress in migrating legacy benefits to universal credit, but some vulnerable claimants will need more time to make the transition. The Crisis and Resilience Fund, introduced by Labour, aims to support low-income households during difficult times. It will replace both the household support fund and discretionary housing payments, offering a 'crisis payment' and a 'housing payment' to those in need. Additionally, budgeting advance loans, offered by the government, provide interest-free support for people on universal credit facing emergency financial shortfalls. These loans have a maximum repayment period of two years and are automatically deducted from universal credit payments. The energy price cap, which is set to increase by £221 a year to £1,862 from July, is another concern. Many experts recommend that households consider a fixed tariff energy deal if possible, but the market for these deals has been affected by the US-Iran war. The cost of living payment scheme, which ran between 2022 and 2024, has not been continued by the DWP. However, there are other sources of support available, such as charitable grants and energy provider help. Social tariffs for broadband and water bills are also available to those on certain benefits. In conclusion, while the cost of living crisis continues to pose significant challenges, there are resources and support available to help households navigate these difficult times. It is crucial for individuals to be aware of the support they are entitled to and to take advantage of the resources available to them.
