June 2026 universal credit, benefits and pensions dates plus cost of living support

As we reach the halfway point of the year, many are starting to find cost of living pressures more intense as financial uncertainty hanging over millions of households.

While bill increases of April may have settled, new expenses have begun to arise as conflict in the Middle East hits Britain’s economy.

The US-Iran war has severely disrupted the global oil trade, bringing knock-on effects to the price of essentials such as energy and food.

The situation remains uncertain as it runs on, sparking fears that the impact on households could persist throughout 2026, and possibly beyond.

Inflation dropped to 2.8 per cent in the year to April, down from 3.3 per cent in March. But experts warn that the welcome downturn will likely be short-lived, with some anticipating a spike to 4 per cent by the end of the year.

Around two-thirds (63 per cent) of Britons say they have had to cut back on the essentials to handle the rising prices, recent analysis by the Cost of Living Action group found.

Meanwhile, 55 per cent of households living in poverty now contain at least one working person, according to the Resolution Foundation think tank, which revealed the scale of the issue.

Against this difficult economic backdrop, households should claim all the support they are entitled to. There are now around 24 million people in the country claiming some combination of Department for Work and Pensions (DWP) administered benefits, which include those drawing a state pension, representing around one in three people.

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Yet research by Policy in Practice shows that £24bn worth of benefits goes unclaimed every year – you can use its helpful calculator to work out what you might be entitled to.

Are you struggling with the DWP or the cost of living? Share your story: albert.toth@independent.co.uk

Here is an overview of the financial support available to households this May and key dates for benefit and state pension recipients to look out for:

Benefit payment dates in June

Benefit payments will go out as usual in June, as there are no bank holidays to be aware of. This includes:

For more information on how and when state benefits are paid, visit the government’s website.

The DWP has now mostly completed the migration of all ‘legacy benefits’ to universal credit. However, in an update at the end of March, it said employment and support allowance and housing benefit would not be closed off until “the end of the summer” to allow vulnerable claimants more time to make the move.

Are you having issues with universal credit, PIP, or any other benefit? Get in touch via email: albert.toth@independent.co.uk

Pension payment dates in May

The basic state pension is paid straight into bank accounts, similar to how benefits are paid. It is usually paid every four weeks, with the exact day you receive it corresponding to the last two digits of your national insurance (NI) number.

Here’s when you should be paid based on those numbers:

When will benefit rates go up?

In April 2026, all universal credit claimants received an above-inflation income boost of around 6.2 per cent to the standard allowance. For a single person over 25, this is a £6 per week increase, rising from £92 to £98.

For couples with one or both partners over 25, it was an increase of £9 per week, rising from £145 to £154.

Most other benefits were uprated by September’s inflation rate alone, increasing by 3.8 per cent. This included PIP, DLA, attendance allowance, carer’s allowance, ESA and more.

However, at the same time, the weekly payment rate for the health-related element of universal credit for new claimants was cut from £105 to £50. The rate for existing claimants will also be frozen until 2029.

This is a reduction of more than £200 a month, cutting the additional rate by around half.

The state pension rose by 4.8 per cent from April in line with annual earnings growth. This will bring the weekly amount to £241.05.

Other help available

Crisis and Resilience Fund

From April, councils have been able to administer Labour’s new ‘Crisis and Resilience Fund’, designed to support low-income households at times when affording the essentials becomes a struggle.

It will replace both the household support fund and discretionary housing payments.

Crisis payment

The first part of the new scheme is a ‘crisis payment’ to support low-income households that have experienced a financial shock, or are at risk of entering crisis.

As with the household support fund, councils will continue to have discretion over the exact eligibility criteria. However, the government’s guidance says it should not be limited just to those in receipt of benefits.

The DWP has asked that councils take a ‘cash-first’ approach to the crisis payment, meaning cash payments should be awarded unless there is a fair reason not to do so.

In March, it confirmed it was giving local authorities more funding through to support those affected by rising heating oil prices.

Housing payment

A new ‘housing payment’ has also been introduced across the UK, aimed at providing financial support towards housing costs for those in need.

This will usually be related to rent, such as needing rent in advance, a rental deposit, or a shortfall. It could also cover a lump sum associated with housing, like the cost of moving.

Unlike the crisis payment, the housing payment will be restricted to those in receipt of certain benefits. These are either housing benefit or universal credit with the housing element for rental costs. However, DWP says those who do not qualify but are still in need could be considered for a crisis payment instead.

Budgeting advance loans

The government offers a “budgeting advance loan” for people on universal credit who face an emergency lack of money. The loan has a maximum repayment period of two years.

These loans are interest-free and are automatically deducted from universal credit payments. You can borrow an ‘advance’ of up to:

Following Labour’s 2024 Budget, a new cap was introduced on the amount the DWP can deduct from benefit payments to repay loans and debts, including budgeting advance loans.

Beginning in April 2025, deductions from universal credit have been capped at 15 per cent of the standard allowance, down from 25 per cent.

Charitable grants

If you are struggling financially, you may be eligible for certain charitable grants. There is a wide range of grants available depending on your circumstances.

However, these grants will typically require you to meet specific criteria and will only be able to offer limited funds.

Charitable grants are available for people who are disabled or ill, carers, bereaved, unemployed, students, and for many other reasons. The charity Turn2us has an online tool to search for grants which may be available to some.

Energy provider help

A number of energy suppliers offer help for those struggling with their energy bills. These include British Gas, Scottish Power, EDF, E.ON, OVO and Octopus. It is worth contacting your energy provider to find out if you are eligible.

Some also offer free devices like electric blankets for households with vulnerable residents to keep warm.

Social tariffs for broadband and water

For those struggling with household costs, social tariffs are available for both broadband and water bills. This will mean a reduced rate for certain eligible households.

For water, every company operating in the UK has a social tariff by law. However, the amount on offer can vary between regions and, because water providers can’t be chosen like energy providers, the support has been criticised as a “postcode lottery”.

For instance, some offer as much as 90 per cent off bills, while others cap support at a 20 per cent reduction.

To find out what support your water company offers, it is worth checking on its website or contacting the helpline. In all cases, households will need to be deemed to be on a low income and/or in receipt of certain benefits.

Similarly, many broadband providers offer social tariffs to those on certain benefits like universal credit or pension credit.

Council tax reduction

If you meet certain criteria or are on certain benefits, you may be able to apply for a discount on your council tax of up to 100 per cent (this is sometimes called council tax support).

Your local council may still be able to offer you a discretionary reduction if you can demonstrate you are facing severe hardship and can’t afford to pay your council tax.

To apply for a council tax reduction, contact your local council via the government’s website.

Up to 30 hours of free childcare

From 1 September 2025, all working parents in the UK became entitled to 30 hours of free childcare for children up to the age of four. This concluded a gradual set of expansions that began in April 2024.

Parents must apply online and reconfirm their eligibility every three months, in time for each school term. Working parents can also apply for tax-free childcare, giving back 20p for every 80p you put towards childcare, up to a maximum of £500 a year.

Energy price cap: Is it going up?

Ofgem’s energy price cap will increase by £221 a year to £1,862 from July, energy regulator Ofgem has confirmed. The 13 per cent increase marks the highest level in over two years, triggered by spiking oil prices caused by the US-Iran war.

The energy price cap is the maximum amount suppliers can charge you for each unit of energy if you’re on a standard variable tariff. That includes most households. It is expressed as an annual bill for an average home.

Many experts, including Ofgem itself, recommend households consider a fixed tariff energy deal if possible. However, the US-Iran has seen fewer of these on the market than in previous months.

Will there be another cost of living payment in 2026?

The DWP has not announced any continuation of the cost of living payment scheme that ran between 2022 and 2024. The final payment should have been made to eligible households between 6 February and 22 February 2024.

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