It’s not just you—August might be bringing some sunshine, but for many households, the financial forecast still feels a bit cloudy. Inflation may have finally calmed down to pre-pandemic levels, yet the weekly food shop hasn’t exactly gone back to “normal” prices. And those energy bills? Still stubbornly high. Wages, meanwhile, haven’t been in any rush to catch up. So even though the numbers on government reports look better, day-to-day reality tells a different story.
The Food Foundation recently reported that back in January 2025, around 7.3 million adults—nearly 14% of all UK households—were facing food insecurity. That’s not just skipping the odd takeaway; it’s struggling to put together basic meals. On top of that, energy debt has climbed to £3.9 billion, which is more than double what it was five years ago. In that context, knowing exactly when your benefits or pension will land in your account isn’t just useful—it’s essential.
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August Bank Holiday Payment Changes
Most benefit payments in August will arrive as usual, but there’s one important exception: the Summer Bank Holiday. This year it falls on Monday 25 August 2025. If your payment date is that day, you won’t have to wait until Tuesday—you’ll get it on Friday 22 August instead.
That includes:
- State Pension
- Universal Credit
- Personal Independence Payment (PIP)
- Jobseeker’s Allowance (JSA)
- Employment and Support Allowance (ESA)
- Child Benefit
- Disability Living Allowance (DLA)
The government has a handy page for checking exact payment timetables, which is worth bookmarking if you get multiple benefits.
State Pension Dates
The Basic State Pension is paid every four weeks, and your payday is set by the last two digits of your National Insurance number:
| NI Number Ending | Normal Payment Day | August Bank Holiday Payment |
|---|---|---|
| 00–19 | Monday | Friday 22 August |
| 20–39 | Tuesday | Unchanged |
| 40–59 | Wednesday | Unchanged |
| 60–79 | Thursday | Unchanged |
| 80–99 | Friday | Unchanged |
From April 2025, the State Pension increased by 4.1% thanks to the triple lock, giving pensioners an extra £472 a year.
Benefit Increases & Cuts
April 2025 brought a 1.7% rise for most benefits, reflecting the September 2024 inflation rate. But bigger changes are on the horizon—starting April 2026, Universal Credit will see above-inflation rises until 2029. The catch? The health-related element for new claimants will be cut from £105 to £50 a month and then frozen. If you’re eligible, applying sooner rather than later could make a real difference.
Extra Help Available Right Now
Even if your regular payments are just about covering bills, unexpected costs have a nasty way of showing up. Here are some of the main support options:
| Support Type | What It Covers | How to Apply |
|---|---|---|
| Budgeting Advance Loan | Emergency costs (interest-free loan) | Through Universal Credit account |
| Discretionary Housing Payment | Extra rent/housing costs | Local council |
| Household Support Fund | Food, bills, essentials | Local council (until March 2026) |
| Charitable Grants | Varies by need | Turn2us |
| Energy Support Schemes | Help from suppliers like British Gas, Octopus | Contact supplier directly |
| Council Tax Reduction | Discount up to 100% | Local council |
| Free Childcare | 30 hours for under-5s from Sept 2025 | Through your childcare provider or council |
Energy Prices & Cost of Living Payments
From July to September 2025, Ofgem’s price cap dropped from £1,849 to £1,720—a 7% fall. That’s better news than we’ve had for a while, but for many households it just means “slightly less expensive,” not “cheap.”
The Department for Work and Pensions (DWP) hasn’t confirmed any new Cost of Living Payments for 2025. The last one was between 6–22 February 2024, and so far, there’s no sign of another round.
Planning Ahead
The difference between just scraping by and having a small financial cushion often comes down to timing and information. Knowing your payment dates, applying for every bit of help you’re entitled to, and budgeting with the actual (not the ideal) cost of living in mind—these aren’t just smart habits right now, they’re survival tactics.
FAQs
When will my benefits be paid if they’re due on 25 August 2025?
They’ll be paid on Friday 22 August instead.
How often is the State Pension paid?
Every four weeks, with the date based on the last two digits of your National Insurance number.
Did the energy price cap drop this summer?
Yes—from £1,849 to £1,720 in July 2025, a 7% fall.
Is there another Cost of Living Payment in 2025?
No, the last one was in February 2024.
How much did benefits increase in April 2025?
By 1.7%, based on inflation from September 2024.
