Key Highlights
- December 2025 payment dates for benefits and state pension recipients
- New research shows millions facing increased costs as inflation remains high
- 24 million people in the UK claiming some combination of DWP-administered benefits
- In April 2026, universal credit claimants will receive a 6.2% increase to standard allowance
- New cap on deductions from universal credit payments effective from April 2025
Managing the Cost of Living: Essential Information for December 2025
As we approach the end of 2025, many households in the United Kingdom are grappling with rising costs and stagnant wages. The Independent highlights key financial support available to those facing these challenges.
December Payment Dates for Benefits and Pensions
In December 2025, benefit payments will mostly go out as normal. However, it’s important to note several bank holidays that affect payment dates:
- Those due a payment on Christmas Day (Thursday 25 December) will receive their benefits on the previous working day, which is Wednesday 24 December.
- Payments originally scheduled for Boxing Day (Friday 26 December) will also be made on Christmas Eve, which is Wednesday 24 December.
- A few days later, New Year’s Day (Thursday 1 January) is a bank holiday and recipients due to receive payments on this day should instead expect them on the previous working day, New Year’s Eve (Wednesday 31 December).
For state pension recipients, payment dates are determined by the last two digits of their national insurance number. Payments will also be affected by the same bank holiday rules as other benefits.
Key Financial Support Available in 2025
The government offers several forms of support to alleviate financial strain on households:
- Budgeting Advance Loans: These loans are available for those on universal credit who face emergencies. They have a maximum repayment period of two years and do not accrue interest.
- Discretionary Housing Payment (DHP): Households can apply to their local council for financial support towards rent or housing costs, but eligibility criteria vary by council area.
- Housing Support Fund (HSF): This fund provides assistance to those facing financial hardship, complementing standard benefits and grants. Eligibility and funds available are decided on a council-by-council basis.
- Charitable Grants: Various charities offer support based on specific criteria, such as disability, illness, or unemployment.
Additionally, energy providers like British Gas, Scottish Power, EDF, E.ON, OVO, and Octopus offer assistance to those struggling with their bills. Some suppliers also provide free devices for vulnerable residents to keep warm during colder months.
Rising State Pension in 2026
The state pension is set to rise by 4.8% from April 2026, bringing the weekly amount to £241.05. This adjustment aligns with annual earnings growth and aims to provide some relief to retirees.
Conclusion
Claiming Your Benefits
With inflation remaining high and household bills increasing, it is crucial for households to claim all support they are entitled to. The DWP estimates that around 24 million people in the UK are claiming various combinations of benefits, representing about one-third of the population.
For those facing issues with PIP, universal credit, or any other benefit, contact Albert Toth at [email protected] for assistance. The Independent also offers a helpful calculator to determine potential entitlements under DWP-administered benefits.
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