The Department for Work and Pensions (DWP) has confirmed that benefit payments will proceed as normal in October 2025, with no bank holidays affecting schedules. However, significant changes are on the horizon, including the completion of the migration of legacy benefits to Universal Credit by January 2026.
From April 2026, all Universal Credit claimants will receive an above-inflation increase, starting at a minimum of 2.3%, as part of Labour's welfare reforms. However, new claimants will see the health-related element of Universal Credit halved from £105 to £50 per month, a reduction of over £200 monthly, frozen until 2029.
The state pension is expected to rise by 4.7% from April 2026, bringing the weekly amount to £241.05, in line with the triple lock. Meanwhile, all benefits were uprated by 1.7% in April 2025, matching the September 2024 inflation figure.
To help with emergency costs, the DWP offers budgeting advance loans, interest-free, with repayments capped at 15% of the standard allowance from April 2025, down from 25%. Households can also apply for Discretionary Housing Payments from their local council.
With around 24 million people claiming DWP benefits, including state pensions, and £24bn in benefits going unclaimed annually, experts urge households to check their eligibility using tools like the Policy in Practice calculator.
