As the end of 2025 approaches, many households are continuing to feel the pressure of rising prices, high bills and colder weather. Millions across the UK are still struggling with day-to-day costs — with new research suggesting £24bn in benefits goes unclaimed every year.
If you receive DWP benefits or a state pension, here are the key things to know for December:
📌 Payment Date Changes (Christmas & New Year)
Because of the bank holidays, payments due on:
🎄 Christmas Day (25 Dec) → paid 24 Dec
🎁 Boxing Day (26 Dec) → paid 24 Dec
🎆 New Year’s Day (1 Jan) → paid 31 Dec
This applies to:
- Universal Credit
- State Pension & Pension Credit
- Child Benefit
- ESA / JSA / Income Support
- PIP, DLA, Attendance Allowance
- Carer’s Allowance
- And all other DWP-administered benefits
📅 State Pension Payment Days
Based on the last two digits of your NI number:
00–19 → Monday
20–39 → Tuesday
40–59 → Wednesday
60–79 → Thursday
80–99 → Friday
Bank holiday changes apply as above.
📈 Benefit Increases Coming in April 2026
✔ Universal Credit: +6.2%
✔ Most other benefits: +3.8%
✔ State Pension: +4.8% (to £241.05/week)
⚠️ BUT: The health-related UC element for new claimants will drop from £105 → £50 per month. Existing claimants’ rate will be frozen.
💸 Other Support Available
Budgeting Advance Loans (for emergencies):
- £348 (single)
- £464 (couple)
- £812 (with children)
Repayments capped to protect claimants.
Discretionary Housing Payments
Extra help with rent if you receive Housing Benefit or the housing element of UC.
Household Support Fund
Support with essentials, energy vouchers, appliance replacements & more. Run by councils until March 2026.
Energy Supplier Support
Help available from British Gas, EDF, E.ON, Octopus & others — including grants and free electric blankets for vulnerable households.
Social Tariffs
Discounts on broadband and water bills for low-income households.
Council Tax Reduction
Up to 100% off for eligible households.
30 Hours Free Childcare
Available for all working parents of children aged 0–4. Must be applied for and reconfirmed every 3 months.
⚠️ Will there be a Cost of Living payment in 2025?
No — the scheme ended in February 2024 and no extension has been announced.