Millions of UK benefit claimants should note that the Summer bank holiday on Monday 25 August will shift payment dates. Anyone expecting a payment on that date, including state pension recipients, will instead receive it on the previous working day – Friday 22 August.
The Department for Work and Pensions (DWP) continues its migration of legacy benefits to Universal Credit, aiming for completion by January 2026. Those still on tax credits, income support, jobseeker's allowance, or housing benefit should have already received a notice about moving to Universal Credit.
In April 2025, all benefits were uprated by 1.7% in line with September 2024 inflation. The state pension rose by 4.1% under the triple lock, adding £472 per year. From April 2026, Universal Credit claimants will see above-inflation increases, but new claimants will face a cut in the health-related element from £105 to £50 per month, frozen until 2029.
The DWP has also capped deductions from Universal Credit at 15% of the standard allowance from April 2025, down from 25%, to help claimants manage debt repayments. Budgeting advance loans remain available for emergencies, interest-free, with repayment over up to two years.
Despite inflation returning to pre-pandemic levels, the cost of essentials remains high. Research shows 13.9% of households experienced food insecurity in January 2025, and energy arrears reached £3.9 billion by end of 2024. The DWP urges claimants to ensure they receive all entitled support, as £23 billion in benefits goes unclaimed annually.
