Millions of benefit recipients and pensioners are set to receive their usual payments early this week as the August bank holiday changes the policy for the Department for Work and Pensions (DWP).
The summer bank holiday on Monday 25 August means most benefit and state pension payments due that day will instead be sent on the previous working day, which is Friday 22 August.
This will apply to all major benefits, including universal credit, child benefit, Personal Independence Payments (PIP), carer’s allowance and more.
This means anyone expecting one of these to be paid will receive their funds several days earlier than usual. The DWP says it has adopted the policy to ensure that recipients’ payments are not affected by banks and government offices closing for the bank holiday weekend.
Around 24 million people in the country are now in receipt of some combination of DWP-administered benefits, with most impacted by the change.
Minister for social security and disability Sir Stephen Timms said: “We know how much families rely on these payments, and by bringing them forward ahead of the bank holiday we’re ensuring no one has to worry about whether their support will be there when they need it most.
“This is especially important ahead of the new school year – no family should have to choose between buying school supplies and putting food on the table.”
All working-age benefits, including universal credit, PIP, and carer’s allowance, were increased by 1.7 per cent in April. The state pension also rose by 4.1 per cent – an increase of £472 a year – in line with the triple lock, matching 2024 wage growth.
Following the passage of Labour’s controversial welfare bill, all universal credit claimants are due an above-inflation increase to their income next year with an initial rise of at least 2.3 per cent, continuing yearly until 2029.
However, the monthly payment rate for the health-related element of universal credit for new claimants will also be cut from £105 to £50 and frozen until 2029. This reduction of more than £200 a month, effectively halving the additional rate, means those potentially eligible are advised to apply as soon as possible.
For the latest benefit updates and cost-of -iving advice, visit The Independent’s regularly updated guide.
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