John Hughie
The rising cost of living in the UK continues to challenge millions, even as inflation rates ease to pre-pandemic levels.
With food insecurity affecting over 7.3 million adults and energy bill debts hitting £3.9 billion by late 2024, understanding and accessing government support is more crucial than ever.
In August 2025, the Department for Work and Pensions (DWP) has confirmed changes due to the upcoming bank holiday, along with key updates on benefits, pensions, and financial relief schemes that could impact your income and support.
DWP August 2025 Bank Holiday Payment Changes
Monday, 25 August 2025 is a bank holiday in the UK. If your benefits or pension payments are scheduled for this day, you will receive them early, on Friday, 22 August 2025.
Payments Affected Include:
- Universal Credit
- State Pension
- Pension Credit
- Child Benefit
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Attendance Allowance
- Carer’s Allowance
- Employment Support Allowance (ESA)
- Income Support
- Jobseeker’s Allowance
Be sure to check your bank account on 22 August instead of the 25th.
State Pension Payment Schedule
The State Pension is paid every 4 weeks, with the day depending on your National Insurance (NI) number’s last two digits:
| NI Number Ending In | Payment Day |
|---|---|
| 00 to 19 | Monday |
| 20 to 39 | Tuesday |
| 40 to 59 | Wednesday |
| 60 to 79 | Thursday |
| 80 to 99 | Friday |
Benefit Rate Increases in 2025
- All working-age benefits increased by 1.7% in April 2025, aligning with September 2024’s inflation rate.
- State Pensions increased by 4.1%, amounting to an annual rise of approximately £472 under the triple lock guarantee.
- From 2026 to 2029, Universal Credit rates are expected to rise above inflation, starting with a 2.3% increase.
However, the health-related element of Universal Credit will be frozen, impacting those with disabilities or long-term health conditions.
Other Financial Support You Can Access
1. Budgeting Advance Loan (Universal Credit)
Provides emergency funds, repaid over 2 years.
| Household Type | Maximum Loan |
|---|---|
| Single Individual | £348 |
| Couple | £464 |
| Family with Children | £812 |
From April 2025, loan repayments are capped at 15% of your Universal Credit payment.
2. Discretionary Housing Payment (DHP)
Available to those receiving Housing Benefit or the housing element of Universal Credit to cover rent-related shortfalls.
3. Household Support Fund (HSF)
Offers up to £300 in cash support or vouchers. Available until March 2026, after which the Crisis and Resilience Fund will replace it.
4. Charitable Grants
Eligible individuals (unemployed, disabled, students, carers) can apply for one-time funding from charitable organizations.
5. Energy Bill Assistance
Major providers like British Gas, EDF, and Octopus offer support schemes for customers in financial distress.
6. Council Tax Discount
Low-income households may qualify for up to 100% discount on council tax. Applications must be submitted through your local council.
Childcare Support in 2025
- From April 2024: 15 hours of free care for 2-year-olds.
- From September 2024: Extended to children aged 9 months.
- From September 2025: All children under 5 can receive up to 30 hours of free childcare.
Reconfirm your eligibility every 3 months online.
Energy Price Cap Relief
From July to September 2025, Ofgem’s energy price cap has been reduced to £1,720 (down from £1,849), offering some relief after multiple hikes.
Cost of Living Payment in 2025?
There is no confirmed Cost of Living Payment for 2025. The last instalment was issued in February 2024, and no extension has been announced yet.
Mental Health Resources Available
If you’re facing emotional or mental stress, you can get support through:
- Samaritans: 116 123 (free, 24/7)
- Mind: 0300 102 1234
- Scope: Forums for people with disabilities
- NHS England: Online triage for mental health care
With rising living costs and fluctuating support schemes, staying informed about your benefit and pension payment schedules is essential.
The August 2025 bank holiday will bring early payments for millions of claimants. Meanwhile, make sure to explore every available financial aid option, from housing support to energy relief and childcare assistance.
Check your eligibility and apply in time—because every bit of support can help ease the financial strain in today’s challenging economy.
FAQs
When will I get my benefit payment if it falls on the August bank holiday?
If your payment date is 25 August 2025, it will be paid early on 22 August 2025 due to the bank holiday.
Will there be any increase in Universal Credit payments in 2025?
Yes, Universal Credit increased by 1.7% in April 2025. Further increases are expected yearly starting 2026.
Is the Cost of Living Payment continuing in 2025?
No, the last Cost of Living Payment was in February 2024. No new payments have been announced for 2025.
