The Department for Work and Pensions (DWP) has confirmed that benefit payments will proceed as normal in September 2025, with no bank holidays affecting schedules. This includes all working-age benefits, pensions, and cost-of-living support.
Millions of UK households continue to struggle with the cost of living, as research from the Resolution Foundation shows essential goods prices remain significantly higher than during the 2022 crisis. The Food Foundation reports that 13.9% of households experienced food insecurity in January 2025, while energy bills rose to £3.9 billion by end of 2024.
Despite one in three people claiming DWP-administered benefits, £23 billion worth of benefits remain unclaimed annually, according to Policy in Practice. The DWP aims to complete migration of all legacy benefits to Universal Credit by January 2026. Those on income support, tax credits, housing benefit, or jobseeker's allowance should have already received a notice to move.
State pension payments are made every four weeks, with the payment day determined by the last two digits of the National Insurance number. In April 2025, all benefits increased by 1.7%, while the state pension rose by 4.1% (up £472 per year). From April 2026, Universal Credit claimants will receive an above-inflation increase of at least 2.3% annually until 2029, though the health element for new claimants will be cut from £205 to £50 per month and frozen until 2029.
Additional support includes the energy price cap, which was reduced to £1,720 for July to September 2025, with the October to December cap to be announced at the end of August. The DWP has not confirmed continuation of the Cost of Living Payment scheme; the last payment was made in February 2024.
For mental health support, Samaritans is available 24/7, and Mind offers a welfare benefits line for navigating the benefits system. Households are encouraged to use the Policy in Practice calculator to check entitlement to unclaimed benefits.
