As the festive season approaches in December 2025, millions across the UK are bracing for higher bills and colder weather, intensifying the daily struggle with the cost of living. Despite inflation easing, prices remain stubbornly high against stagnant wages, pushing many into debt to cover essentials.
Essential Payment Dates for December 2025
Most Department for Work and Pensions (DWP) benefits, including Universal Credit, the State Pension, and Personal Independence Payment (PIP), will be paid as usual this December. However, key bank holidays will alter some schedules.
Payments due on Christmas Day, Thursday 25 December, will instead be made on Christmas Eve, Wednesday 24 December. The same applies for payments due on Boxing Day, Friday 26 December.
For New Year's Day, Thursday 1 January 2026, payments will be issued a day early on Wednesday 31 December 2025.
State Pension payments follow a weekly schedule 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). These are also subject to the bank holiday changes.
Available Financial Support and Upcoming Changes
With £24 billion in benefits going unclaimed annually, it is crucial households check their eligibility. A range of support remains available.
Benefit Uprating in April 2026: Universal Credit's standard allowance will rise by approximately 6.2%. For a single claimant over 25, this means an increase from £92 to £98 weekly. Most other benefits, like PIP and Carer's Allowance, will rise by 3.8%, in line with September's inflation. However, the health element of Universal Credit for new claimants will be cut from £105 to £50 monthly.
The State Pension will increase by 4.8% from April 2026, taking the weekly amount to £241.05.
Key Schemes and Grants for Households
Budgeting Advance Loans: Interest-free emergency loans for those on Universal Credit. From April 2025, repayment deductions are capped at 15% of the standard allowance.
Household Support Fund (HSF): Distributed by local councils until March 2026, this fund can provide cash grants, help with bills, and essential appliances. Applicants must contact their local authority.
Discretionary Housing Payment (DHP): Help with rent shortfalls or deposits for those receiving Housing Benefit or the housing element of Universal Credit.
Other Support: Energy suppliers like British Gas and Octopus offer assistance schemes. Social tariffs for broadband and water are available for eligible low-income households. Council Tax reductions of up to 100% can be applied for via local councils.
Childcare: Since September 2025, all working parents are entitled to 30 hours of free childcare for children under four.
The government has not announced any continuation of the direct Cost of Living Payments beyond February 2024. The energy price cap will see a marginal increase to £1,758 from January 2026.
For those struggling, mental health support is available from Samaritans (116 123) and Mind (0300 123 3393).
