August will see many changes for Department for Work and Pensions benefits claimants with dates for payments beign altered – and also a host of other assistance on offer. Households are struggling with huge cost of living rises, meaning every penny the poorest can claim would make a real difference.
Rising food priceslatest data from the Office for National Statistics (ONS) shows food and non-alcoholic drink prices rose by 4.4% in the year to May. This was the highest level in more than a year, with items like ice cream, coffee, cheese and meat spiking last month.
Chocolate prices soared by nearly 18% annually, a record jump for the confectionery. Cupboard items like sugar, jam and chocolate as well as ice cream saw the biggest monthly price hikes, while meat costs also rose.
Furthermore, the latest dataset shows that the inflation rate across furniture and homeware was the highest rate over the year to May than since the end of 2023, particularly fridge freezers and vacuum cleaners.
Chancellor Rachel Reeves earlier this year said there was “more to do” to bring down inflation and help with the cost of living.
She said: “We took the necessary choices to stabilise the public finances and get inflation under control after the double-digit increases we saw under the previous government, but we know there’s more to do.”
Despite inflation returning to pre-pandemic levels, the cost of goods has remained persistently high in the face of stagnant wages. At the same time, exorbitant household bills mean millions are grappling with debts to afford the essentials.
Around 7.3 million adults (13.9 per cent of households) experienced food insecurity in January 2025, figures from The Food Foundation reveal, showing no signs of returning to pre-2022 levels. Meanwhile, energy arrears have more than doubled over the past five years, rising to £3.9 billion at the end of 2024.
Yet research by Policy in Practice shows that £23 billion worth of benefits goes unclaimed every year – you can use their helpful calculator to work out what you might be entitled to.
Here is an overview of the financial support available to households this August and key dates for benefit and state pension recipients to look out for:
Benefit payment dates in August
Benefit payments will be going out as normal for the most part in August, although there is one bank holiday to be aware of. These include:
- Universal Credit
- State pension
- Pension credit
- Child benefit
- Disability living allowance
- Personal independence payment (PIP)
- Attendance allowance
- Carer’s allowance
- Employment support allowance
- Income support
- Jobseeker’s allowance
Due to the Summer bank holiday on Monday 25 August, anyone expecting a payment on that date should instead receive on the previous working day – Friday 22 August. This also applies to state pension payments.
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.
Here’s when you should be paid based on those numbers:
00 to 19: Monday
20 to 39: Tuesday
40 to 59: Wednesday
60 to 79: Thursday
80 to 99: Friday
Other help becoming available
Winter fuel £150 allowance
The Warm Home Discount will be expanded meaning 6 million households will receive £150 off their energy bills this winter. 2.7 million extra households will receive £150 off their energy bills next winter as the Warm Home Discount is expanded – putting money directly into people’s pockets
This increases the number of households who are eligible to over 6 million in total – including 900,000 families with children and a total of 1.8 million households in fuel poverty
• latest intervention follows a raft of cost of living support for those who need it most – from expanding free school meals to childcare support – which is only possible after government stabilised the economy and fixed the foundations through the Plan for Change
Millions of households will see their energy bills cut by £150 this winter, as the government delivers another major package of support to ease the cost of living for working families through the Plan for Change.
Over 6 million households will benefit this year – an increase of 2.7 million households, including 900,000 more families with children and a total of 1.8 million households in fuel poverty. Every billpayer on means-tested benefits will now qualify, removing restrictions that previously excluded many who needed help and providing peace of mind to millions more families.
Benefit rates rising
In April, all benefits were uprated by 1.7 per cent, matching the September 2024 inflation figure. The increase applied to all working-age benefits, including universal credit, PIP, DLA, attendance allowance, carer’s allowance, ESA and more.
Meanwhile, in line with the triple lock, the state pension has risen by 4.1 per cent – up £472 a year – matching wage growth in 2024.
Things will change slightly for Universal Credit claimants next year following Labour’s welfare announcements. Everyone receiving the benefit’s standard allowance will see a one-off above inflation rise by £7 a week from April 2026, taking it from £91 to £98.
However, the rate of the additional Universal Credit health element will be frozen from 2026 at £97 until 2029/30 (although those in this group will receive the increased standard allowance).
Additionally, any new claimants for the health element after April 2026 will receive a massively reduced rate of £50 a week – almost £2,500 less than the current level. This means it is a good idea for anyone who thinks they might be eligible to apply as soon as they can.
Winter fuel payments
Some nine million pensioners in England and Wales will receive the winter fuel payment this winter, the Chancellor has announced in a £1.25 billion U-turn of Government plans.
The payment, worth up to £300, will be restored to the vast majority of pensioners who previously received it because anyone with an income of under £35,000 a year will now get the payment automatically.
Confirming the U-turn, Rachel Reeves said the Government had “listened to people’s concerns” about the decision to limit the payment to the poorest pensioners last winter, and was now able to widen eligibility because Labour had restored “stability” to the economy.
Ministers have insisted no additional Government borrowing will be needed to cover the costs of the reversal, prompting warnings of tax rises on the horizon.
Those with an income above the £35,000 threshold will also receive the payment, but it will then be reclaimed from them in tax.
Budgeting Loans
A Budgeting Loan can help pay for:
- furniture or household items (for example, washing machines or other ‘white goods’)
- clothes or footwear
- rent in advance
- costs linked to moving house
- maintenance, improvements or security for your home
- travelling costs within the UK
- costs linked to getting a new job
- maternity costs
- funeral costs
- repaying hire purchase loans
People may be eligible for a Budgeting Loan if you’ve been on certain benefits for 6 months. They only have to pay back the amount borrowed, and repayments are taken automatically from benefits.
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 claim Child Benefit
Following the Labour Budget in October, a new cap has been introduced on the amount the DWP can deduct from benefit payments to repay loans and debts, including budgeting advance loans.
For more information click here.
Household Support Fund
The Household Support Fund is a government-funded initiative that provides financial assistance to vulnerable households facing hardship, particularly with the cost of essentials like food and energy. It’s managed by local authorities and aims to help those struggling with the rising cost of living. The fund is not a loan and typically comes in the form of vouchers or other non-cash support, rather than direct cash payments.
This nationwide program is set to run until March 2026. The government has committed £1 billion in funding to transition it into a ‘Crisis and Resilience Fund’, which will also replace the DHP.
Up to 30 hours of free childcare
All working parents in the UK are currently entitled to 30 hours of free childcare for children aged 3 to 4. From 1 April 2024, this entitlement expanded to include 15 hours of free childcare for 2-year-olds.
From 1 September, it was expanded again to include all children from the age of nine months. You must apply online and reconfirm your eligibility every three months, in time for each school term. Working parents can also apply for tax-free childcare, giving back 20p for every 80p you put towards childcare, up to a maximum of £500 a year.
The final expansion to free childcare, coming in September 2025, will see all children under five eligible for 30 hours.
