State pension and Universal Credit payments to change next month in major DWP shake-up

Sir Keir Starmer responds to a question about benefits reform from Chris Hope
GB NEWS
Patrick O'Donnell

By Patrick O'Donnell


Published: 09/07/2025

- 09:10

August 2025's Bank Holiday will change when the DWP hands out state pension and Universal Credit payments to claimants

Thousands of Department for Work and Pensions (DWP) claimants receiving the state pension, Universal Credit, and other benefits will see changes to their usual payment dates next month in a major shake-up.

This is due to the August Bank Holiday and comes as many households continue to feel the pressure of the ongoing cost of- living crisis, with rising food and energy bills straining budgets across the UK.


Next month's Bank Holiday falls on Monday, August 25 2025, which is a public holiday across England, Wales, and Northern Ireland.

As a result of this, benefit payments due on that day will likely be paid early.

Man and DWP sign

Britons are being reminded of a looming DWP payment shake-up next month

GETTY

This typically falls on the last working day before the holiday, which is expected to be Friday, 22 August 2025.

The DWP has confirmed that although the payment date will change, the amount received will stay the same.

It should be noted that this change will primarily impact state pensioners or benefit claimants who receive payment on the 25th of the month.

As well as DWP payment, tax credits administered by HM Revenue and Customs (HMRC)

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State pension graphHow much will the state pension triple lock cost the British taxpayer? OBR

Here is a full list of the DWP benefit payments that are due to be affected by next month's shake-up:

  • Attendance Allowance
  • Carer’s Allowance
  • Disability Living Allowance (DLA)
  • Income Support
  • Jobseeker’s Allowance (JSA)
  • Pension Credit
  • Personal Independence Payment (PIP)
  • State Pension
  • Universal Credit
  • Child Benefit (paid by HMRC)
  • Tax Credits (paid by HMRC).
  •  

    On the gov.uk website, the DWP states: "Benefits are usually paid straight into your bank, building society or credit union account. If your payment date is on a weekend or a bank holiday, you’ll usually be paid on the working day before.2
     

     

    If the payment does not appear as expected, contact the relevant department (DWP or HMRC) as soon as possible.

    LATEST DEVELOPMENTS:

    Universal Credit sign on JobCentre Plus door

    Universal Credit is the primary benefit payment for those out of work

    PA

    As of April 2025, the Universal Credit standard monthly allowance for a single person under 25 sits at £316.98. For a single person aged 25 or over, the payment comes to £400.14.

    Couples where both partners are under 25 will see their payment increase receive £497.55 per month, while couples where at least one partner is 25 or older claim £628.10.

    The new state pension (for those who reached pension age on or after 6 April 2016) is currently £230.25 per week. Meanwhile, the basic state pension (for those who reached pension age before 6 April 2016) sits at £176.45 per week.

    These changes reflect the government's annual uprating policy, which uses the triple lock to determine increases — whichever is highest among inflation, wage growth, or 2.5%.