In a significant update for millions across the UK, the Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC) have announced changes to state pension and benefit payment schedules due to the upcoming Easter bank holiday. Payments originally scheduled for Good Friday or Easter Monday in April will now be issued on Thursday 2 April, ensuring recipients receive their funds without delay during the holiday period.
Inflation Drops to 10-Month Low
This payment adjustment comes as inflation has fallen to a 10-month low of 3 per cent in January, with economic forecasts indicating it could reach the Bank of England's 2 per cent target by April. Concurrently, the energy price cap is set to decrease by approximately seven per cent from 1 April, providing some relief to households grappling with cost-of-living pressures.
Benefit Increases and Unclaimed Support
From April 2026, Universal Credit claimants will see an above-inflation income boost of around 6.2 per cent, while most other benefits are set to rise by 3.8 per cent and the state pension by 4.8 per cent. Despite these increases, an estimated £24 billion in benefits goes unclaimed annually in the UK, with about one in three people currently receiving some form of DWP-administered support.
Labour's New Crisis and Resilience Fund
In a policy shift, Labour's newly introduced 'Crisis and Resilience Fund' will be administered by local councils starting in April. This fund replaces existing schemes and aims to provide 'crisis payments' and 'housing payments' to low-income households, enhancing support for those in need.
The full payment dates for Universal Credit, benefits, and pensions in April 2026, along with details on cost-of-living support, have been released, offering clarity for recipients navigating these financial changes.
