August 2025 Payment Dates – Benefits, Pensions, and Cost of Living Support Schedule

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Keir Starmer

For millions of UK households, rising living costs remain a major challenge even as inflation cools. Essentials like food, rent, and energy remain stubbornly expensive, forcing many families to stretch every pound. With over 24 million people now receiving at least one benefit, knowing what support is available—and when to expect it—is more important than ever.

Here’s a full breakdown of August 2025 payment schedules, key benefit changes, and where to find help if you’re struggling.

Payments

Most benefit and pension payments will continue as normal this month, except for those scheduled on the Summer Bank Holiday, Monday 25 August. If your payment falls on that date, it will be issued early—on Friday 22 August instead.

Here are the benefits affected:

  • Universal Credit
  • State Pension
  • Pension Credit
  • Child Benefit
  • Personal Independence Payment (PIP)
  • Disability Living Allowance (DLA)
  • Attendance Allowance
  • Carer’s Allowance
  • Employment and Support Allowance (ESA)
  • Jobseeker’s Allowance (JSA)
  • Income Support

If you receive the basic state pension, your payment day is linked to the last two digits of your National Insurance number:

NI Ending inPayment Day
00–19Monday
20–39Tuesday
40–59Wednesday
60–79Thursday
80–99Friday

Rates

From April 2025, working-age benefits and the state pension increased as follows:

  • Universal Credit, PIP, DLA, Carer’s Allowance, and other working-age benefits went up by 1.7%, in line with inflation.
  • The state pension rose by 4.1% under the triple lock system, based on wage growth.

But from April 2026, new Universal Credit claimants with health conditions will see the health-related element cut from £105 to £50 per month—a reduction of over £200 monthly. This rate will be frozen until 2029. If you qualify for this element now, it’s wise to apply early to avoid this cut.

Loans

If you’re on Universal Credit and facing an emergency, you may be able to request a Budgeting Advance:

StatusMaximum Advance
Single£348
Couple£464
With children£812

These are interest-free loans, repaid via deductions from your UC payments. From April 2025, the amount the DWP can deduct has been capped at 15%, down from 25%.

Housing

If you’re struggling with rent, two schemes can help:

1. Discretionary Housing Payment (DHP):
Only for those receiving Housing Benefit or the housing element of UC. This helps with rent arrears, deposits, or moving costs. Contact your local council to apply.

2. Household Support Fund (HSF):
Offers emergency help with food, bills, and essentials. Each council distributes funds differently—some offer direct cash, others offer food vouchers or help with energy. This fund runs until March 2026 and will later become part of the new Crisis and Resilience Fund.

Support

Aside from DWP benefits, other financial help is available:

Charitable Grants:
Use Turn2us.org.uk to search for grants based on your situation—whether you’re a carer, disabled, unemployed, or struggling with bereavement.

Energy Bills Help:
Many energy companies offer support for those struggling to pay. Contact your provider to ask about hardship funds, energy grants, or payment plans.

Council Tax Reductions:
You may qualify for up to 100% discount on your council tax bill based on income or benefit status. If you’re facing financial hardship, contact your council for help.

Childcare

From 1 September 2025, all children under age 5 will be eligible for 30 hours of free childcare if both parents are working. You’ll need to apply online and reconfirm eligibility every three months. Families can also apply for tax-free childcare, which adds £2 for every £8 you pay, up to £500 per quarter.

Prices

Ofgem’s energy price cap has dropped by 7% from £1,849 to £1,720 for the period of July–September. While it’s a relief, prices still remain high compared to pre-crisis levels.

Costofliving

The Cost of Living Payment scheme that ran between 2022 and 2024 has ended. The last payment was made between 6–22 February 2024. The DWP has not announced any new payments for 2025.

Mental Health

If you’re feeling overwhelmed:

  • Samaritans – Call 116 123 any time, or email jo@samaritans.org
  • Mind – Call 0300 102 1234 for emotional support, or 0300 123 3393 for info
  • Scope Forum – Online support community for disabled people and carers
  • NHS England – Offers online triage and mental health resources

If you’re in debt, behind on bills, or struggling with DWP, remember: help exists. Don’t wait—reach out and claim what you’re entitled to.

FAQs

When is the next benefit payment in August?

If due on 25 August, you’ll get it early on 22 August.

How much is the budgeting advance?

Up to £812, depending on your household status.

What is the new Universal Credit health cut?

From April 2026, it’s reduced to £50/month for new claims.

How can I apply for free childcare?

Apply online via gov.uk and reconfirm every term.

Has the Cost of Living Payment ended?

Yes, the last payment was made in February 2024.

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