August 2025 Pensions & Benefits: For millions of people in the UK, everyday life has become a struggle. The highs of inflation, which peaked in 2022, may have come under control now, but the prices of goods and services have still not returned to normal levels. On the one hand, incomes are stagnant, and on the other, the prices of house rent, electricity and water bills, and food items are constantly taking a toll on people’s pockets.
According to a recent report by the Resolution Foundation, essential items of living are still extremely expensive. Food Foundation figures show that in January 2025, about 7.3 million adults (13.9% of households) were facing food insecurity – and this number has still not returned to pre-2022 levels. Talking about energy bills, the amount outstanding has reached £3.9 billion in the last five years.
Government benefits and pensions: Know what you will get in August 2025 and when
In such difficult circumstances, it becomes important that every family takes full advantage of the support available from the government. Currently, around 24 million people in the UK are receiving some kind of government benefit. Despite this, data from ‘Policy in Practice’ says that people do not claim about £23 billion in assistance every year.
If you are a beneficiary of any benefit or pension scheme of the Department for Work and Pensions (DWP), then it is very important for you to know these important dates in August 2025.
Benefit payment dates in August 2025
Payments will be taken at the normal time as in the month of August other than on the bank holiday (Monday 25 August). The employees who will be paid on this day will be paid on the 22nd of August, Friday.
Payments that will be made this month include:
- Universal Credit
- State Pension
- Pension Credit
- Child Benefit
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Attendance Allowance
- Carers Allowance
- Employment Support Allowance (ESA)
- Income Support
- Jobseekers Allowance
Pension payment dates: dependent on your National Insurance number
If you are a beneficiary of the State Pension, you will receive your payment once every four weeks, straight into your bank account. The payment date is based on the last two digits of your National Insurance (NI) number:
- 00 to 19: Monday
- 20 to 39: Tuesday
- 40 to 59: Wednesday
- 60 to 79: Thursday
- 80 to 99: Friday
Will benefit rates increase?
All working-age benefits are due to rise by 1.7% in April 2025. This includes Universal Credit, PIP, DLA, Attendance Allowance, Carers Allowance, ESA and more.
The state pension has risen by 4.1% under the ‘triple lock’ policy, increasing the annual rate by £472. Universal Credit will begin rising above inflation from April 2026 and continue every year until 2029. However, the new rate for health-related Universal Credit will be just £50, down from £105 previously – the rate will be kept constant until 2029.
Other support schemes: what can you claim?
1. Budgeting Advance Loan
If you’re on Universal Credit and need money suddenly, you can get an interest-free Budgeting Advance from the government:
- Single: £348
- Couple: £464
- If you have a child: £812
From April 2025, deductions from Universal Credit are capped at a maximum of 15% (previously 25%), following the October 2024 Budget.
2. Discretionary Housing Payment (DHP)
This can be requested where you qualify; that is, you are on Housing Benefit or the housing element of Universal Credit and then request this support with your local council. It aids in shortages in renting of homes, rent advance, or relocation of place of residence.
3. Household Support Fund (HSF)
It is a program that gives people in need necessities: appliances, utility aid, or specific amounts of money (e.g. up to 300 ), which run until March 2026. It is allocated by each of the local councils based on need.
4. Charitable grants
When you are in trouble some charities might provide you with grants in special cases disability, illness, unemployment, studentship etc. such sites like the Turn2Us website provide Internet based tools so that you can seek out charitable grants.
5. Energy bill help
Companies such as British Gas, Scottish Power, EDF, E.ON, and Octopus run schemes to help pay energy bills. Check with your energy provider to see if you’re eligible.
6. Council tax discount
If you’re on certain benefits or in serious financial difficulty, you may be able to get your council tax discounted (even 100%). Contact your local council to find out.
7. Free childcare
Working parents in the UK get up to 30 hours of free childcare for children aged 3-4. From April 2024, 15 hours for 2-year-olds also started and will be extended to 30 hours for all children from 9 months old from September 2025.
8. Energy price cap
Ofgem has reduced the energy price cap from £1,849 to £1,720 for July-September 2025 – a 7% drop. This is a relief for consumers on the standard variable tariff.
Will we get Cost of Living Payment again in 2025?
The last payment of the ‘Cost of Living Payments’ given between 2022 and 2024 was made in February 2024. Currently DWP has not announced any plans to extend this scheme to 2025.
Mental health support
Mental health anxiety can have a profound impact on mental health. It is important to seek help:
- Samaritans: 116 123 (24/7 free call)
- Mind: 0300 102 1234 (helpline), 0300 123 3393 (information), 0300 222 5782 (welfare)
- Scope: Community forum for people with disabilities
- NHS England: Online mental health triage service
Conclusion: Make the most of every support
In August 2025, the financial pressures may be intense, but the Government and many organizations are doing their best to support the public. It is important that every person in need gets the help they deserve with the right information on time. Whether it is a pension, Universal Credit, or any other assistance — every help can bring some relief to your life.
If you are facing difficulty in claiming benefits, contact your local council or aid organizations. Information is the biggest weapon in these difficult times.
FAQs
Q1. Will my benefit payment be delayed due to the August bank holiday?
Yes, if your payment is due on Monday 25 August 2025, you’ll receive it early—on Friday 22 August.
Q2. How often is the state pension paid?
State pension is usually paid every four weeks directly into your bank account.
Q3. Can I still apply for Universal Credit if I receive other benefits?
Yes, but most ‘legacy benefits’ are being phased out and replaced by Universal Credit. You should have received a migration notice if it applies to you.
Q4. What is a Budgeting Advance, and who can get it?
It’s an interest-free loan available to Universal Credit claimants facing financial emergencies. Repayments are deducted from future Universal Credit payments.
Q5. Is there any help available for energy bills?
Yes, many energy providers offer support schemes. You should contact your supplier to see if you qualify for assistance.
