Millions in the UK continue to feel the pinch as the cost of essentials remains high, even after inflation has eased back to pre-pandemic levels.
According to recent reports, everyday necessities remain unaffordable for many, with wages failing to catch up and household bills continuing to rise.
In January 2025, 7.3 million adults (13.9% of UK households) faced food insecurity, while energy debt skyrocketed to £3.9 billion by the end of 2024.
Don’t Miss Out: Billions in Unclaimed Benefits
Despite the pressure on finances, many eligible individuals are not claiming the support available to them. It’s estimated that £23 billion in benefits go unclaimed each year.
With one in three people currently receiving a form of DWP-administered support, it’s crucial to check what you could be missing using an online benefits calculator.
Key Benefit Payment Dates for August 2025
Most benefit payments will follow their regular schedule, except for the Summer Bank Holiday on Monday, 25 August. Payments due on that date will be issued early on Friday, 22 August.
Benefits to Watch For
- Universal Credit
- State Pension
- Pension Credit
- Child Benefit
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Attendance Allowance
- Carer’s Allowance
- Employment Support Allowance (ESA)
- Income Support
- Jobseeker’s Allowance (JSA)
Pension Payment Schedule Based on NI Number
The State Pension is paid every four weeks, and the payment day depends on your National Insurance number:
| NI Number Ending | Payment Day |
|---|---|
| 00 to 19 | Monday |
| 20 to 39 | Tuesday |
| 40 to 59 | Wednesday |
| 60 to 79 | Thursday |
| 80 to 99 | Friday |
Upcoming Benefit Rate Changes
As of April 2025:
- Working-age benefits saw a 1.7% increase, matching inflation from September 2024.
- The State Pension rose 4.1%, equal to a £472 annual boost, following the triple lock rule.
Looking Ahead: April 2026 and Beyond
- Universal Credit will receive above-inflation increases until 2029.
- However, new claimants will see their health-related element cut from £105 to £50, remaining frozen until 2029. That’s a loss of over £200 monthly, so early application is advised for those eligible.
Additional Support Available in August 2025
Budgeting Advance Loans
For emergencies, those on Universal Credit can apply for an interest-free loan:
| Household Type | Maximum Loan |
|---|---|
| Single | £348 |
| Couple | £464 |
| With Children (Claiming CB) | £812 |
A new Labour-introduced cap from April 2025 reduces repayment deductions from 25% to 15% of your standard allowance.
Discretionary Housing Payment (DHP)
If you’re receiving Housing Benefit or Universal Credit with a housing element, you may qualify for DHP to help with:
- Rent shortfalls
- Deposits
- Advance rent payments
Check with your local council, as criteria and funds vary by region.
Household Support Fund (HSF)
Running until March 2026, the HSF provides:
- Help with utility bills
- Essential household items
- Cash support up to £300
Each local authority decides how to allocate funds. The program will transition into a Crisis and Resilience Fund afterward.
Charitable Grants
Numerous charities offer targeted grants for:
- Disabled individuals
- Carers
- Bereaved families
- Unemployed persons
- Students
Use the Turn2us grant search tool to find grants relevant to your circumstances.
Energy Supplier Assistance
Major providers like British Gas, Octopus, EDF, and E.ON offer tailored help for those struggling with energy bills. Contact your supplier directly for eligibility.
Council Tax Reduction
You could receive up to a 100% discount on council tax if:
- You are on certain benefits
- You face financial hardship
Speak to your local council or apply online through the government portal.
Free Childcare Expansion
From September 2025:
- 30 hours of free childcare will apply to all children under five
- Currently, 15 hours are available for 2-year-olds, and 30 hours for children aged 3 to 4
You must reconfirm eligibility every three months and apply online.
Energy Price Cap Reduction
From July to September, Ofgem lowered the price cap to £1,720—a 7% drop from the previous quarter. This helps ease pressure on households using standard variable tariffs.
Will There Be Another Cost of Living Payment in 2025?
As of now, no further Cost of Living Payments have been confirmed by the DWP for 2025. The last installment was distributed between 6 and 22 February 2024.
Mental Health and Crisis Support
If you’re struggling emotionally:
- Samaritans: Call 116 123 or email jo@samaritans.org
- Mind: Call 0300 102 1234 or the benefits line at 0300 222 5782
- Scope: Offers online community forums for support
- NHS England: Access online mental health triage services
Despite the easing of inflation, UK households continue to struggle with persistent costs and stagnant wages. Thankfully, a range of financial support options are available—from benefit payments and loans to grants and childcare schemes.
August 2025 brings important updates to payment schedules, new policy changes, and valuable support programs. Don’t miss out—check your eligibility, apply early where necessary, and reach out for help if you need it.
FAQs
When will August 2025 benefits be paid out?
Most payments will follow the usual schedule, except for those due on the August Bank Holiday (25 August), which will be paid early on 22 August.
Are Universal Credit payments increasing in 2026?
Yes, all Universal Credit recipients will see an above-inflation increase starting April 2026, with yearly hikes continuing through 2029.
How do I apply for the Household Support Fund?
Applications must be submitted through your local council’s website. Support varies by area, so check specific eligibility and offerings locally.