Benefit Payments Moved Because of Bank Holiday: Here's When You Can Receive Yours

Thousands of people across the UK will receive their benefit payments earlier than expected this month, as the government adjusts dates ahead of the August bank holiday.

Due to the bank holiday falling on Monday, 25 August 2025, benefit payments scheduled on the days leading up to it (23, 24, or 25 August) will now be paid on Friday, 22 August 2025. The Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC) confirmed the changes this week, affecting millions of claimants.

The adjustment includes different types of benefit payments for Universal Credit, Child Benefit, the State Pension, Personal Independence Payment (PIP), Carer's Allowance, and Attendance Allowance, which will all arrive earlier than usual for those impacted.

Who Is Affected and What Changes to Expect

Universal Credit is typically paid on the same day every month, based on the date of an individual's first payment. Child Benefit is usually paid every four weeks, on a Monday or Tuesday. As this year's August bank holiday lands on the earliest possible date (25 August) payments due over the long weekend have been brought forward.

Again, those expecting payments on Saturday, 23 August, Sunday, 24 August, or Monday, 25 August, will instead receive their money on Friday, 22 August. The reason for this is to ensure that recipients are not left without access to funds during the three-day weekend. Normal payment schedules will resume from Tuesday, 26 August. Those not expecting payments on these specific dates will not see any changes to their usual schedules.

The change applies across England, Wales, Scotland, and Northern Ireland. It affects both regular and one-off benefit payments due over the holiday period.

Why Payments Are Being Moved

The government has stated that the move is to prevent any disruption caused by the closure of banks and government offices over the holiday weekend. A spokesperson confirmed the policy ensures households receive vital funds in time to cover essential costs, and that this measure is part of the government's ongoing approach to supporting families during key times of the year.

Sir Stephen Timms, Minister for Social Security and Disability, said that the timing was especially important given the proximity to the new school term. He noted that families should not have to choose between buying school supplies and paying for basic needs. According to him, this forms part of the wider 'Plan for Change' initiative aimed at providing long-term financial security.

The policy is expected to benefit a wide range of recipients, from working parents to pensioners and carers.

Long-Term Support: A Permanent Universal Credit Increase

Alongside the August bank holiday changes, the government has also confirmed a long-term rise in Universal Credit. For the first time, the standard allowance will rise above inflation permanently, increasing by £725 (Approximately $925) in cash terms by 2029/30 for a single person aged 25 or over.

This is described by the Institute for Fiscal Studies as the largest permanent real-terms rise to the main rate of out-of-work support since 1980. Nearly 4 million households are expected to benefit from the change.

While the full impact will be felt over the coming years, the announcement is seen as a significant structural change to the welfare system.