Bank Holiday benefits and pension payments dates for May 2025

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Higher incomes for millions have been promised with the start of the new financial year – despite the cost of living and inflation continuing to bite.

Bills increased for most households in April, making it essential to stay on top of all the support you could be receiving.

Households have gained from several income boosts last month, for both those in and out of work. All DWP-administered benefits rose 1.7 per cent as the state pension rose by 4.1 per cent in line with the triple lock. The minimum wage also increased by an inflation-busting 6.7 per cent, giving millions of workers a bumper £1,400 pay rise.

But there’s some bad news, too. Household bills have now seen big rises across the board, including energy, water and council tax.

Many will also be worried about Labour’s recently-announced changes to the welfare system. Amounting to £5 million in cuts, these will see the rates for Universal Credit change next year, followed by the criteria to claim the Personal Independence Payment (PIP) tightening.

Meanwhile, the latest figures from millions of low-income households paint a bleak picture of the UK’s economic situation. Latest research from the Joseph Rowntree Foundation found that more than 1 in 5 people in the UK (21 per cent) were in poverty in 2022/23 – 14.3 million people. This comprised 8.1 million working-age adults, 4.3 million children, and 1.9 million pensioners.

Against this difficult economic backdrop, here is an overview of the financial support available to households this May and key dates for benefit and state pension recipients to look out for:

Benefit payment dates in May

Benefit payments will be going out as normal in May for the most part, but there are some exceptions due to the Bank Holidays.

That means that if you were due to get your benefit on 26 May, you will probably get it on 23 May.

Benefit payments include:

For more information on how and when state benefits are paid, visit the government’s website.

The DWP is aiming to complete the migration of all ‘legacy benefits’ to Universal Credit by January 2026. Those receiving tax credits, income support, jobseeker’s allowance, and housing benefit should have received a notice about moving to Universal Credit already.

A report from Policy in Practice this year shows that nearly £23bn in benefits goes unclaimed a year – they offer a helpful calculator to work out what you might be entitled to.

Have you been having issues with the DWP recently? Get in touch via email: albert.toth@independent.co.uk

Pension payment dates in May

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:

Have benefit rates gone up?

In April, all benefits were uprated by 1.7 per cent, matching the September 2024 inflation figure. The increase will apply 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.

Other help available

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 automatically deducted from Universal Credit payments. You can borrow an ‘advance’ of up to:

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.

From April 2025, deductions from universal credit will be 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 are a wide range of grants available depending on your circumstances.

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

Charitable grants are available for people who are disabled or ill, carers, bereaved, unemployed, students – and many more. The charity Turn2us has an online tool to search for grants which may be available to you.

Energy provider help

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

British Gas also offer a grant of up to £2,000 to customers of any energy provider. You will need to meet specific criteria to be eligible, and can apply on the British Gas Energy Trust website.

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 discount of up to 100 per cent.

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

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

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, this 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.

Energy Price Cap: Is it going up?

Ofgem’s energy price cap has risen from £1,738 to £1,849 for April to June – an increase of 6.4. This marks the third consecutive increase in the figure, and will mean an average increase of £9.25 per month from the current rate.

The energy price cap is the maximum amount energy 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.

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