Benefits Update 2025: Essential Payment Dates and 1.7% Increase Coming This March

Current State of UK Benefits and Poverty

Inflation, unclaimed benefits, and unemployment are drawing harsh realities for millions in the UK.

As of 2022/23, 21% of the UK population—about 14.3 million people—live in poverty.

This statistic includes 8.1 million working-age adults, 4.3 million children, and 1.9 million pensioners.

Despite much-needed support, nearly £23 billion in benefits go unclaimed each year.

Inflation has been another tough challenge, persistently staying above the Bank of England’s 2% target, and perched at 2.5% in December 2022.

Pressure on household budgets has resulted in increased prices for necessities such as food and energy—adding strain to already financially struggling homes.

These demands make it crucial for eligible individuals to claim the benefits to which they are entitled. However, many remain unaware of their eligibility.

Public awareness campaigns and simplified claims processes could combat this issue, making a significant difference for many.

Looking ahead, it is essential to continually address ongoing poverty challenges to improve financial stability and well-being for all.

March 2025 Benefit Payment Schedule

Regular Payment Schedule

March 2025 will see no changes to the regular benefit payment schedule.

Despite the many financial challenges hitting UK households, benefit payments will continue as normal this month.

This includes Universal Credit, Personal Independence Payment (PIP), and State Pension, among others.

Importantly, there are no bank holidays in March 2025 to disrupt the schedule.

Complete List of Benefits

The following benefits will be paid out on their normal dates:

• 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)

Determining Payment Dates

Benefit payment dates are based on the recipient’s National Insurance (NI) number. The last two digits of your NI number determine the specific day you will receive your benefits:

• 00 to 19: Monday
• 20 to 39: Tuesday
• 40 to 59: Wednesday
• 60 to 79: Thursday
• 80 to 99: Friday

As you plan for the coming months, keep these key dates and details in mind to ensure you receive your benefits on time.

Keeping in mind the ongoing financial uncertainties and the pending transitions in the benefits landscape, it is crucial for benefit recipients to stay informed about any potential changes.

Upcoming Benefit Rate Changes

1.7% Increase for Working-Age Benefits

Starting from April 2025, there will be a 1.7% increase in all working-age benefits.

This includes Universal Credit, Personal Independence Payment (PIP), Disability Living Allowance (DLA), Attendance Allowance, and Carer’s Allowance, among others.

The rise aligns with the inflation rate of September 2024 and aims to provide some financial relief during these challenging times.

4.1% State Pension Increase

Good news for pensioners: the State Pension will see a significant rise of 4.1%, reflecting the wage growth of 2024.

This increase translates to an additional £472 annually, providing a welcomed boost to the income of many elderly citizens.

New Cap on Universal Credit Deductions

From April 2025, the Department for Work and Pensions will cap deductions from Universal Credit payments at 15% of the standard allowance.

This is a reduction from the previous cap of 25%, aimed to ease the financial burden on those repaying loans or debts.

These upcoming changes are designed to provide some financial stability for the people most in need.

Stay tuned for more updates on available financial support and additional entitlements to help manage rising household costs.

Universal Credit Migration Update

The Department for Work and Pensions (DWP) plans to complete the transition of all legacy benefits to Universal Credit by January 2026.

If you’re receiving tax credits, income support, Jobseeker’s Allowance, or housing benefit, you should have already received a notice detailing your transition to Universal Credit.

Those who are on Employment Support Allowance (ESA) or housing benefit alone can expect similar notices by December 2025.

Labour’s Plans and Proposed Changes

The Labour government has committed to reducing spending on sickness and disability benefits, aiming for £3 billion in savings, a goal set by the previous administration.

While the exact details of these changes are still being finalized, the DWP is expected to publish a green paper outlining the proposed reforms in Spring 2025.

Transitioning to Universal Credit is a significant shift for many households.

It’s essential to stay informed about these changes and understand how they might impact you.

Keeping abreast of the latest government communications and support services can help during this period of adjustment.

For those who are affected, it’s also wise to explore available financial support options, such as budgeting loans, charitable grants, and energy provider programs.

While the transition may present challenges, understanding your entitlements and available aids can help ease the process.

Rising Household Costs

The cost of living in the UK continues to rise, adding pressure to already strained household budgets.

Here’s an overview of what to expect in the coming months.

Energy Price Cap

The energy price cap, which dictates the maximum amount suppliers can charge if you’re on a standard variable tariff, has increased from £1,717 to £1,738 for the January to March period.

This 1.2% rise will mean higher energy bills for most households through the cold months.

Unfortunately, this is not the final blow: Analysts predict an additional 5-7% increase in energy prices come April, further straining household finances.

Other Household Bills

On top of the rising energy costs, households should brace themselves for anticipated increases in both water and council tax bills.

While exact figures are not yet confirmed, these hikes will contribute to the overall increase in the cost of living, which already feels unmanageable for many.

As these increased costs loom, it’s crucial to explore all available support options.

Numerous initiatives exist to help mitigate these rising expenses, so ensure you’re seeking out and taking advantage of the help offered.

Available Financial Support

Navigating the rising household costs amidst economic difficulties isn’t easy, but several financial support options are available to help you get through challenging times.

Household Support Fund

The Household Support Fund has been extended until March 2025.

This funding is allocated to local councils to support vulnerable households in their area.

Councils distribute the funds through various means such as cash grants, supermarket vouchers, or assistance with energy bills.

Each council tailors the initiatives to best meet the needs of their community, so check with your local council to see what specific help might be available to you.

Budgeting Advance Loans

For those on Universal Credit facing urgent financial needs, Budgeting Advance loans are available.

These loans are interest-free and must be repaid within two years, deducted automatically from future Universal Credit payments.

Depending on your circumstances, you can borrow up to:

• £348 if you’re single
• £464 if you’re part of a couple
• £812 if you have children

Charitable Grants and Energy Provider Programs

Various charitable grants are also available, tailored to specific needs such as disability, illness, unemployment, or bereavement.

Eligibility criteria vary, so it’s best to research and apply based on your situation.

Additionally, many energy providers offer assistance programs for those struggling with their bills.

Providers like Scottish Power, EDF, E.ON, and Octopus may have favorable programs in place.

British Gas, for example, offers grants up to £2,000 to eligible customers regardless of their current energy provider.

Financial support options can make a significant difference by providing relief and stability during economic uncertainties.

Additional Help and Entitlements

Council Tax Reduction Schemes

If you meet certain criteria or receive specific benefits, you may be eligible for a discount on your council tax of up to 100%.

Local councils can provide discretionary reductions for those facing severe hardship and unable to pay their council tax.

For more information on how to apply, contact your local council.

Expanded Free Childcare Programs

Currently, working parents in the UK are entitled to 30 hours of free childcare for children ages 3 to 4.

Since April 1, this was expanded to 15 hours for 2-year-olds.

Starting September 2025, all children from the age of nine months will also be eligible for free childcare.

Parents must apply online and reconfirm eligibility every three months.

Transition to Financial Support

As families and individuals navigate the changing landscape of benefit rates and rising costs, understanding all available supports becomes crucial.

Remaining informed about these updates helps mitigate financial strain and maximizes all available aid.