DWP news: October 2025 payments dates for benefits and pensions plus cost of living support

As temperatures begin to drop after a scorching summer, many people will be worried about the rising costs that come with cold seasons.

Managing living expenses remains a daily struggle for millions of people in the country as prices continue to rise faster than household incomes.

Although inflation has returned to pre-pandemic levels, goods costs have remained persistently high in the face of stagnant wages. At the same time, exorbitant household bills mean millions of people are struggling with debt to meet basic needs.

According to recent research by The Trussell Trust, around 14 million adults go without food because they can’t afford it. Meanwhile, energy debts have more than doubled in the last five years, rising to £3.9bn by the end of 2024.

Latest research from the Joseph Rowntree Foundation has found that low-income families in the UK are heading for the worst recorded decline in living standards by the next election in 2029.

In this challenging economic environment, it is important that households demand all the support they deserve. There are currently around 24 million people in the country (including those on state pensions) claiming some combination of DWP-administered benefits, representing around one in three people.

But new research by Policy in Practice shows £24bn worth of benefits go unclaimed every year. useful calculator to figure out what you might qualify for.

Do you live in a household affected by the two-child benefit cap? Get in touch via email: albert.toth@independent.co.uk

Here’s an overview of the financial support available to households this October and key dates for benefit and state pension recipients to look out for:

Aid payment dates in October

As there are no public holidays to be aware of, social assistance payments will be made as normal in October. These include:

For more information about how and when government benefits are paid, visit the government website.

The DWP aims to complete the transition of all “legacy benefits” to universal credit by January 2026. Those in receipt of tax credit, income support, jobseeker’s allowance and housing benefit should have already received notice of the switch to universal credit.

Having trouble with PIP, universal credit or any other benefit? Get in touch via email: albert.toth@independent.co.uk

Pension payment dates in October

The basic state pension is paid directly into bank accounts, similar to the payment of social benefits. It’s usually paid every four weeks, and the exact day you receive it corresponds to the last two digits of your national insurance (NI) number.

Here’s when you should be paid based on these numbers:

When will social assistance rates increase?

In April, all social benefits were increased by 1.7 percent, matching the September 2024 inflation figure. The increase applied to all working age benefits including universal credit, PIP, DLA, attendance allowance, carer’s allowance, ESA and more.

Meanwhile, in line with the triple lock, the state pension rose by 4.1 per cent, matching the wage rise in 2024, for an annual increase of £472.

By April 2026, all universal credit claimants will have their incomes rise above inflation following the passage of Labour’s controversial welfare bill. These extra inflationary increases will continue each year until 2029, with the first being an increase of at least 2.3 percent.

But at the same time, the monthly payment rate for the health-related element of universal credit for new applicants will also be reduced from £105 to £50. This rate will also be frozen until 2029.

This represents a reduction of over £200 per month and reduces the surcharge by around half. This means that anyone who thinks they might be able to apply is encouraged to do so as soon as possible.

The state pension is expected to increase by 4.7 percent from next April, in line with annual earnings growth. This will take the weekly amount to £241.05.

Other help available

Budgeting payday loans

The government is offering “budget advance loans” to people on universal credit who are experiencing urgent money shortages. The maximum repayment period of the loan is two years.

These loans are interest-free and are automatically deducted from universal credit payments. You can borrow an “advance” up to the following amount:

Following the Labor Budget in October, a new cap was introduced on the amount the DWP can deduct from benefit payments to repay loans and debts, including budgeting advance loans.

From April 2025, deductions from universal credit will be capped at 15 per cent of the standard allowance, rather than 25 per cent.

Optional Housing Payment

Households can apply to their council for a Discretionary Housing Payment (DHP), which offers financial support towards rent or housing costs.

You can only get DHP if you are receiving Housing Benefit or the housing element of universal credit. It can cover housing costs related to missing rent, rental deposits, and advance rent costs if you need to move home.

Exact eligibility and available funds are decided on a council basis, so you will need to contact your local authority to find out more.

Household Support Fund

The Household Support Fund (HSF), distributed by local councils, complements standard benefits and grants, offering vital assistance to those facing financial hardship.

As part of this government initiative, eligible households in the UK will be able to access support such as essential appliances, a contribution towards utility bills and direct cash payments of up to £300.

Local authorities are free to decide how to allocate HSF funds to suit households in their area; so exactly what is available will vary. To apply, households need to contact their municipality (most offer an online form).

This nationwide program is planned to last until March 2026. The government has committed £1bn of funding to transform the program into a “Crisis and Resilience Fund”, which will also replace the DHP.

charitable donations

If you’re struggling financially, you may be eligible for certain philanthropic grants. A wide range of grants are available depending on your circumstances.

However, these grants often require you to meet certain criteria and allow you to offer only limited funding.

Charitable donations are available to disabled or ill people, carers, the bereaved, the unemployed, students and many other causes. Charity Turn2us has an online tool to search for grants may be available for you.

Energy provider assistance

A number of energy suppliers are offering help to those struggling with their energy bills. These include British Gas, Scottish Power, EDF, E.ON and Octopus. It is worth contacting your energy provider to find out if you are eligible.

Council tax reduction

If you meet certain criteria or qualify for certain benefits, you can apply for up to a 100 per cent reduction in your council tax (this is sometimes called council tax support).

If you can show that you are facing serious hardship and cannot afford to pay your council tax, your local council may still offer you a discretionary discount.

You can contact your local council to apply for council tax relief. via government website.

Up to 30 hours of free child care

From 1 September 2025, all working parents in the UK are entitled to 30 hours of free childcare for their children up to the age of four. Thus, the gradual expansion process that started in April 2024 comes to an end.

Parents must apply online and re-certify their eligibility every three months for each school term. Working parents can also apply for tax-free child care; For every 80p you spend on childcare, you can be paid back 20p (up to a maximum of £500 per year).

Energy ceiling price: Is it increasing?

Ofgem’s energy price cap will rise by 2 per cent from £1,720 to £1,755 in October. The £35 increase follows a larger 7 per cent drop from £1,849 to £1,720 in the July-September period.

The energy price cap is the maximum amount that energy suppliers can charge you for each unit of energy if you use a standard variable tariff. This includes most households. It is expressed as the annual bill of an average house.

Many experts, including Ofgem itself, recommend that households consider a fixed-tariff energy deal; Many people in the market are offering lower than the cap rate.

Will there be another cost of living payment in 2025?

The DWP has not announced that the Cost of Living Payment scheme, which is in place between 2022 and 2024, will continue. The final payment was due to be made to eligible households between February 6 and February 22, 2024.

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