May 2025 Benefits and Pension Payments: What to Expect This Bank Holiday

As households across the United Kingdom continue to juggle rising living costs, the government has implemented a series of updates to benefit payments and pensions for the new financial year.

With May’s Bank Holiday altering the usual payment schedule for many, it’s crucial that claimants stay informed to avoid confusion or missed funds.

While some support measures are easing financial pressure—such as the 4.1% state pension increase and a 6.7% rise in the minimum wage—there is growing concern about upcoming changes to welfare support, future Universal Credit adjustments, and the continued rise in essential bills.

This guide breaks down everything you need to know about benefits and pensions in May, including payment date changes, recent increases in financial support, and additional help available to households navigating financial difficulty.

May 2025 Payment Date Changes Due to the Bank Holiday

Every year, bank holidays can affect the dates when benefits and pensions are paid.

May 2025 is no exception.

The Spring Bank Holiday, falling on Monday, 26 May, means that many benefit payments due on this day will instead be paid early, typically on Friday, 23 May.

This change applies to a variety of payments including:

• Universal Credit

• State Pension

• Personal Independence Payment (PIP)

• Child Benefit

• Disability Living Allowance (DLA)

• Attendance Allowance

• Carer’s Allowance

• Employment Support Allowance (ESA)

• Jobseeker’s Allowance (JSA)

• Income Support

• Pension Credit

Table: Key Payment Dates – May 2025 Adjustments

Note: Payments scheduled for any other days in May will remain unaffected unless otherwise notified by the DWP.

What Has Changed in April 2025? A Look at Benefit Increases

This financial year began with a number of adjustments intended to provide relief to those hardest hit by inflation and stagnant wages. Key changes include:

• Universal Credit and all working-age benefits increased by 1.7%, in line with the September 2024 inflation rate.

• The State Pension rose by 4.1%, thanks to the government’s continued commitment to the triple lock system. This equates to roughly £472 more annually for pensioners.

• The National Minimum Wage jumped by 6.7%, delivering a £1,400 yearly pay boost to millions of UK workers.

However, the rising cost of essentials—energy, water, and council tax bills—has swallowed much of these gains for many households, making it more important than ever to ensure you’re receiving all available support.

Universal Credit Updates: What’s Changing Next Year

Looking ahead, major reforms to Universal Credit are on the horizon. Following Labour’s recent welfare proposals, the following changes are expected from April 2026:

• The standard allowance will increase by £7 per week, moving from £91 to £98.

• However, the additional health element of Universal Credit will be frozen at £97 per week until 2029/30.

• New claimants of the health element after April 2026 will receive a reduced rate of £50 per week—a cut of almost £2,500 per year compared to current levels.

These changes make it advisable for anyone potentially eligible to apply for Universal Credit’s health component sooner rather than later.

State Pension Payment Schedules

Pensioners are typically paid every four weeks, and the day of the week you receive your pension depends on the last two digits of your National Insurance number.

All May payments are expected to follow this schedule except for those due on the Bank Holiday (26 May), which will be paid on 23 May.

Other Forms of Support Available

In addition to benefit and pension payments, a range of support programmes remain accessible for households under financial stress:

Budgeting Advance Loans

Claimants on Universal Credit who face urgent financial needs can apply for a Budgeting Advance Loan, repayable over two years, and interest-free.

• £348 – if single

• £464 – if in a couple

• £812 – if you have children

From April 2025, repayments will be capped at 15% of your Universal Credit allowance, down from the current 25%, offering some breathing space for struggling claimants.

Charitable Grants

Thousands of charitable organisations offer one-off grants based on need, covering everything from bereavement and illness to education, disability, and unemployment.

Platforms like Turn2us provide tools to help identify which grants may be available depending on your circumstances.

Energy Support

Some energy providers, such as British Gas, EDF, Scottish Power, E.ON and Octopus, offer schemes or grants to help customers pay their energy bills.

Notably, British Gas Energy Trust offers grants of up to £2,000, available to customers of any energy supplier, subject to eligibility.

Council Tax Reductions

If you’re on a low income or claiming benefits, you might be eligible for a council tax discount of up to 100%.

Additionally, councils can offer discretionary reductions in cases of severe hardship.

Applications can be submitted directly through your local authority’s website.

Free Childcare for Working Parents

The government has expanded the free childcare offer to now include:

• 15 hours per week for children aged 2 and over (since April 2024)

• From September 2024: eligibility extended to children from 9 months old

• From September 2025: all children under 5 will qualify for 30 hours per week

This support must be applied for through the government’s Childcare Service Portal, and eligibility must be re-confirmed every three months.

Energy Price Cap Update: April–June 2025

Ofgem’s energy price cap, covering standard variable tariffs, has increased by 6.4%, moving from £1,738 to £1,849 per year for a typical household.

This is the third consecutive rise, adding approximately £9.25 to monthly bills for millions of families.

While the cap limits the rate per unit of energy, it does not restrict the total bill—meaning households using more than the average will still see higher charges.

Mental Health Support for Benefit Recipients

Navigating the benefits system can be stressful, particularly for those already dealing with financial hardship or health issues

. Mental health charities and services offer tailored support:

• Samaritans ( 116 123 – Free, 24/7)

• Mind ( 0300 123 3393 for general support)

• Welfare benefits line ( 0300 222 5782)

• Scope – forums and advice for disabled individuals

• NHS – online mental health triage services

Final Thoughts: Staying Informed Is Key

May 2025 brings a mixture of support and uncertainty.

While increased pensions, benefits, and wages offer hope, changes to Universal Credit and rising bills continue to challenge many households.

Keeping track of payment schedules, eligibility for extra help, and staying aware of policy changes will remain crucial in navigating the months ahead.

Whether you’re a pensioner, a working parent, or a Universal Credit claimant, understanding what support is available—and when it arrives—can make a tangible difference to your financial wellbeing.