The upcoming Bank Holiday in August will mean many benefit claimants will receive their money on a different date.
Money expert Andy Wood, from Tax Natives, has outlined the changes people need to be aware of and how the Bank Holiday on Monday, August 26, will affect their budgeting. He said: "In light of the upcoming Bank Holiday on August 26, many people receiving benefits from the Department for Work and Pensions (DWP) can expect their payments to arrive earlier than usual.
"Normally, benefit payments align with the operational days of DWP offices and phone lines. However, on bank holidays, payments are typically issued on the last working day before the holiday. Those expecting payments on Monday, August 26, will likely see them in their accounts by Friday, August 23.
- Read More: What DWP Universal Credit claimants must do before going on holiday or risk losing benefits
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"This adjustment lets people pay their bills on time and avoid any financial stress. Early payments are a routine practice for Bank Holidays, offering stability and predictability for those receiving benefits."
The benefits affected
A number of benefits will be affected including Attendance Allowance, Carer’s Allowance, Employment Support Allowance (ESA), Income Support, Jobseeker’s Allowance (JSA), Pension Credit, Personal Independence Payment (PIP), State Pension, and Universal Credit.
Mr Wood added: "HMRC has already confirmed that Child Benefit and Tax Credits due on August 26 will be advanced to August 23, so DWP payments will likely follow the same schedule."
The financial expert further explained that benefit payment frequencies differ. He said: "Carer’s Allowance and Jobseeker’s Allowance are typically paid every two weeks, while State Pension and Universal Credit are usually paid every four weeks and monthly, respectively. These payments are directly deposited into recipients' banks, building societies, or credit union accounts.
"If you receive benefits from the DWP, the early payment before the August 26 Bank Holiday means you will have access to your benefit funds sooner, helping you manage your finances better.
"If you live in Scotland, an earlier bank holiday on August 5 means that tax credits and potentially other Social Security payments will be made on August 2. This early payment adjustment means you can plan your finances and manage bills better.
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