Benefit payment dates in August – with bank holiday changes.

Benefit payments will go out as usual for the most part in August, but there are bank holiday dates to be aware of depending on where you live. These include:

• Universal credit
• State pension
• Pension credit
• Child benefit
• Disability living allowance (DLA)
• Personal independence payment (PIP)
• Attendance allowance
• Carer’s allowance

In England, Wales and Northern Ireland, the Summer Bank Holiday is on Monday 31 August. Scotland has this holiday earlier, on Monday the 3rd. Payment dates that fall on bank holidays usually occur on the previous working day.

The start of the summer holidays also brings extra expenses for parents as kids enjoy their six weeks away from school. The summer is usually a time when cost-of-living pressures are less intense, with energy demand low and the shock of April’s bill increases becoming part of the normal expenses.

At the same time, concerns remain around the disruption caused by the US-Iran war, which has severely impacted the global oil trade. The conflict has brought knock-on effects to the price of essentials such as energy and fuel, with collapsed peace talks between the nations prompting fear of greater pressures to come.

Inflation fell to 2.6 per cent in the year to June, defying expectations of an increase. Easing prices for products like motor fuel, chocolate and beef contributed to the dip, although experts stilpredict that priceses will begin to rise again.

A record 7.4 million households are now unable to afford at least one essential item, recent research by the Joseph Rowntree Foundation found, up from 7.1 million a year ago.

Against this difficult economic backdrop, households should claim all the support they are entitled to. There are now around 24 million people in the country claiming some combination of Department for Work and Pensions (DWP) administered benefits, which include those drawing a state pension, representing around one in three people.

Yet research by Policy in Practice shows that £24bn worth of benefits goes unclaimed every year – you can use its helpful calculator to work out what you might be entitled to

The DWP has now completed its migration of all ‘legacy benefits’ to universal credit, it confirmed to The Independent in July, with just a few claimants remaining on the old system in exceptional circumstances.

Pension payment dates in August

The basic state pension is paid straight into bank accounts, similar to how benefits are paid. It is usually paid every four weeks, with the exact day you receive it corresponding to the last two digits of your national insurance (NI) number.

When will benefit rates go up?

In April 2026, all universal credit claimants received an above-inflation income boost of around 6.2 per cent to the standard allowance. For a single person over 25, this is a £6 per week increase, rising from £92 to £98.

Couples with one or both partners over 25 saw their weekly amount rise by £9, from £145 to £154.

Most other benefits were uprated by September’s inflation rate alone, increasing by 3.8 per cent. This included PIP, DLA, attendance allowance, carer’s allowance, ESA and more.

However, at the same time, the weekly payment rate for the health-related element of universal credit for new claimants was cut from £105 to £50. The rate for existing claimants will also be frozen until 2029.

This is a reduction of more than £200 a month, cutting the additional rate by around half.

The state pension rose by 4.8 per cent from April in line with annual earnings growth. This will bring the weekly amount to £241.05.

Other help available

For families: Great British Summer Savings

In May, Chancellor Rachel Reeves announced a package of measures to alleviate financial pressures for families over the summer holidays.

The key measure is a temporary VAT cut on family activities lasting from 25 June, when schools break in Scotland, until 1 September, when they return in England, Wales and Northern Ireland.

This reduces the rate from 20 per cent to 5 per cent, with businesses expected to pass on the savings to families in reduced prices.

It applies to cinemas and theatres, attractions like amusement parks and zoos, and meals in restaurants. In all cases, the VAT cut is only applied to products available for families or children.

More help for parents

Parents with school-aged children who receive benefits-related free school meals can access the government-funded Holiday Activities and Food (HAF) programme during the six-week break.

Running nationwide across all local councils in England – with similar schemes operating in Scotland, Wales, and Northern Ireland – it provides children who receive benefits-related free school meals with free holiday club places and a healthy hot meal.

Funding and eligibility criteria vary depending on location, so parents should check with their local authority’s website for more information.

And when the kids go back to school, it is well worth parents checking if their local council offers a school uniform grant to help with this extra cost.

Crisis and Resilience Fund

From April, councils have been able to administer Labour’s new ‘Crisis and Resilience Fund’, designed to support low-income households at times when affording the essentials becomes a struggle.

It will replace both the household support fund and discretionary housing payments.

Crisis payment

The first part of the new scheme is a ‘crisis payment’ to support low-income households that have experienced a financial shock or are at risk of entering a crisis.

As with the household support fund, councils will continue to have discretion over the exact eligibility criteria. However, the government’s guidance says councils should not limit it just to those in receipt of benefits.

The DWP has asked councils to take a ‘cash-first’ approach to the crisis payment, meaning cash payments should be awarded unless there is a fair reason not to do so.

In March, it confirmed that it was giving local authorities more funding to support those affected by rising heating oil prices.

Housing payment

A new ‘housing payment’ has also been introduced across the UK, aimed at providing financial support for housing costs for those in need.

The payment will usually be related to rent, such as needing rent in advance, a rental deposit, or a shortfall. It could also cover a lump sum associated with housing, like the cost of moving.

Unlike the crisis payment, the housing payment will be restricted to those in receipt of certain benefits. These are either housing benefits or universal credit with the housing element for rental costs. However, DWP says those who do not qualify but are still in need could be considered for a crisis payment instead.

Budgeting advance loans

The government offers a “budgeting advance loan” for people on universal credit who face an emergency lack of money. The loan has a maximum repayment period of two years.

These loans are interest-free and are automatically deducted from universal credit payments. You can borrow an ‘advance’ of up to:

• £348 if you’re single
• £464 if you’re part of a couple
• £812 if you or your partner claims child benefit

Following Labour’s 2024 budget, a new cap was introduced on the amount the DWP can deduct from benefit payments to repay loans and debts, including budgeting advance loans.

Beginning in April 2025, deductions from universal credit have been capped at 15 per cent of the standard allowance, down from 25 per cent.

Charitable grants

If you are struggling financially, you may be eligible for certain charitable grants. There is a wide range of grants available depending on your circumstances.

However, these grants will typically require you to meet specific criteria and will only be able to offer limited funds.

Charitable grants are available for people who are disabled or ill, carers, bereaved, unemployed, students, and for many other reasons. The charity Turn2us has an online tool to search for grants that may be available to some.

Energy provider help

Several energy suppliers offer help for those struggling with their energy bills. These include British Gas, Scottish Power, EDF, E.ON, OVO and Octopus. It is worth contacting your energy provider to find out if you are eligible.

Some also offer free devices like electric blankets for households with vulnerable residents to keep warm.

Social tariffs for broadband and water

For those struggling with household costs, social tariffs are available for both broadband and water bills. These measures will mean a reduced rate for certain eligible households.

For water, every company operating in the UK has a social tariff by law. However, the amount on offer can vary between regions and, because water providers can’t be chosen like energy providers, the support has been criticised as a “postcode lottery”.

For instance, some offer as much as 90 per cent off bills, while others cap support at a 20 per cent reduction.

To find out what support your water company offers, it is worth checking on its website or contacting the helpline. In all cases, households will need to be deemed to be on a low income and/or in receipt of certain benefits.

Similarly, many broadband providers offer social tariffs to those on certain benefits, such as universal credit or pension credit.

Council tax reduction

If you meet certain criteria or are on certain benefits, you may be able to apply for a discount on your council tax of up to 100 per cent (this type of assistance is sometimes called council tax support).

Your local council may still be able to offer you a discretionary reduction if you can demonstrate you are facing severe hardship and can’t afford to pay your council tax.

To apply for a council tax reduction, contact your local council via the government’s website.

Up to 30 hours of free childcare

From 1 September 2025, all working parents in the UK became entitled to 30 hours of free childcare for children up to the age of four. This concluded a gradual set of expansions that began in April 2024.

Parents must apply online and reconfirm their eligibility every three months, in time for each school term. Working parents can also apply for tax-free childcare, which gives back 20p for every 80p you put towards childcare, up to a maximum of £500 a year.

The next deadline is 31 August.

Energy price cap: Is it going up?

Ofgem’s energy price cap increased by £221 a year to £1,862 from July. The 13 per cent increase marks the highest level in over two years, triggered by spiking oil prices caused by the US-Iran war.

The energy price cap is the maximum amount suppliers can charge you for each unit of energy if you’re on a standard variable tariff. That includes most households. It is expressed as an annual bill for an average home.

Many experts, including Ofgem itself, recommend households consider a fixed tariff energy deal if possible. However, the US and Iran have seen fewer of these on the market than in previous months.

Ofgem is expected to announce the next price cap, covering October to December, on 26 August 2026.

Will there be another cost of living payment in 2026?

The DWP has not announced any continuation of the cost of living payment scheme that ran between 2022 and 2024. The final payment should have been made to eligible households between 6 February and 22 February 2024.

Mental health support

• In the UK and Ireland, Samaritans can be contacted 24 hours a day, 365 days a year. You can call them for free at 116 123 or visit samaritans.org.
• Mind runs a support line on 0300 102 1234, which provides a safe and confidential place to talk about how you’re feeling. There is also an information line on 0300 123 3393 for nearby support, and a welfare benefits line on 0300 222 5782 to support the mental health of those navigating the benefits system
• Disability charity Scope has a forum where people can have supportive chats with others going through the same experiences
• The NHS offers an online mental health triage service

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