Millions of benefit and state pension claimants in the UK will receive their payments as usual in September 2025, with no bank holidays affecting the schedule. The Department for Work and Pensions (DWP) has confirmed that all regular payments, including Universal Credit, Personal Independence Payment (PIP), and the state pension, will be made on their standard dates.
This comes as new data reveals that 7.3 million adults (13.9% of households) experienced food insecurity in January 2025, according to The Food Foundation. Energy arrears have also more than doubled over the past five years, reaching £3.9 billion by the end of 2024. Despite inflation returning to pre-pandemic levels, the cost of essentials remains high, with stagnant wages exacerbating financial strain for many households.
In April 2025, benefits were uprated by 1.7% in line with the September 2024 inflation figure, while the state pension rose by 4.1% under the triple lock, adding £472 a year. Looking ahead, Universal Credit claimants will see an above-inflation increase from April 2026, with the first rise of at least 2.3%. However, the health-related element for new claimants will be cut from £105 to £50 per month, a reduction of over £200 monthly, frozen until 2029.
The DWP is continuing the 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 received a notice to move. Additionally, a new cap on deductions from Universal Credit for loan repayments has been introduced from April 2025, limiting deductions to 15% of the standard allowance, down from 25%.
Households facing emergency costs can apply for a budgeting advance loan of up to £812 for single claimants, £1,044 for couples, or £1,044 for those with children. The loans are interest-free and repaid over two years via automatic deductions from Universal Credit. Local councils also offer Discretionary Housing Payments for those struggling with rent or housing costs, available to recipients of Housing Benefit or the housing element of Universal Credit.
