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Millions of people are in receipt of certain benefits that help them to manage the cost of living in the UK. New data from millions of low-income households highlights the ongoing challenges in the UK’s economic landscape.
Around 24 million people across the UK are now receiving some form of benefits from the Department for Work and Pensions (DWP), as these payments play an increasingly vital role in helping households manage the rising cost of living. According to research by the Joseph Rowntree Foundation, over 1 in 5 people – equating to 14.3 million individuals – were living in poverty in 2022/23, reports The Independent.
The financial support available to households this July and key dates for benefit and state pension recipients to look out for has been listed below:
Benefit payments will be made as usual in July, with no changes to the schedule since there are no bank holidays. These include:
Universal Credit
State pension
Pension credit
Child benefit
Disability living allowance
Personal independence payment (PIP)
Attendance allowance
Carer’s allowance
Employment support allowance
Income support
Jobseeker’s allowance
The basic state pension is deposited directly into bank accounts, much like other benefits. Payments are typically made every four weeks, with the specific payment day determined by the final two digits of your National Insurance (NI) number.
Here’s when you should be paid based on those numbers:
00 to 19: Monday
20 to 39: Tuesday
40 to 59: Wednesday
60 to 79: Thursday
80 to 99: Friday
In April, all working-age benefits were increased by 1.7%, in line with the inflation rate recorded in September 2024. This uplift affected payments such as Universal Credit, PIP, DLA, Attendance Allowance, Carer’s Allowance, ESA, and others.
At the same time, the state pension rose by 4.1% – equivalent to an annual increase of £472 – thanks to the triple lock guarantee, reflecting wage growth in 2024.
Looking ahead, changes are coming for Universal Credit recipients following Labour’s welfare policy update. From April 2026, the standard allowance will see a one-off increase of £7 per week, rising from £91 to £98 – above the expected rate of inflation.
However, starting in 2026, the additional health element of Universal Credit will be frozen at £97 per week until the 2029/30 financial year. Those already receiving this element will still benefit from the higher standard allowance.
For new claimants applying after April 2026, the weekly rate will drop significantly to £50—a reduction of nearly £2,500 a year compared to the current amount. As a result, those who believe they may qualify are strongly encouraged to apply as soon as possible.
