December 2025 funds dates for PIP, advantages and pensions plus price of residing help | EUROtoday

As the tip of 2025 attracts nearer, increased payments mixed with decrease temperatures imply many might be going through elevated prices within the method to Christmas.

For tens of millions throughout the nation, managing the price of residing stays a each day battle as costs proceed to rise quicker than family incomes.

Despite inflation returning to pre-pandemic ranges, the price of items has remained persistently excessive within the face of stagnant wages. At the identical time, exorbitant family payments imply tens of millions are grappling with money owed to afford the necessities.

Around 14 million adults are going with out meals as a result of they can’t afford it, current analysis by the Trussell Trust discovered. Meanwhile, vitality arrears have greater than doubled over the previous 5 years, rising to £4.4bn by the tip of June.

Anti-poverty charity the Joseph Rowntree Foundation has mentioned that low-income households within the UK are on target for the worst fall in residing requirements on document by the subsequent election in 2029.

Against this troublesome financial backdrop, it will be important that households declare all of the help they’re entitled to. There at the moment are round 24 million individuals within the nation claiming some mixture of DWP-administered advantages, which embody these drawing a state pension, representing round one in three individuals.

Yet new analysis by Policy in Practice reveals that £24bn price of advantages goes unclaimed yearly – you should use its useful calculator to work out what you is perhaps entitled to.

Are you fighting the DWP or price of residing this Christmas? Get in contact by way of e mail: albert.toth@unbiased.co.uk

Here is an outline of the monetary help out there to households this December and key dates for profit and state pension recipients to look out for:

Benefit fee dates in December

For probably the most half, profit funds might be going out as regular in December. These embody:

However, there are a number of key financial institution holidays to concentrate on, as they are going to have an effect on fee dates.

Anyone due a fee on Thursday 25 December (Christmas Day) ought to as an alternative obtain it on Wednesday 24 December (Christmas Eve). Likewise, anybody due a fee on Friday 26 December (Boxing Day) also needs to obtain it on Christmas Eve.

Just a few days later, Thursday 1 January (New Year’s Day) can also be a financial institution vacation and so will even have an effect on fee dates. Anyone attributable to obtain a fee on today ought to as an alternative obtain it on Wednesday 31 December (New Year’s Eve).

For extra data on how and when state advantages are paid, go to the federal government’s web site.

The DWP is aiming to finish the migration of all “legacy benefits” to common credit score by January 2026. Those receiving tax credit, revenue help, jobseeker’s allowance, and housing profit ought to have obtained a discover about shifting to common credit score already.

Are you having points with PIP, common credit score, or another profit? Get in contact by way of e mail: albert.toth@unbiased.co.uk

Pension fee dates in December

The fundamental state pension is paid straight into financial institution accounts, equally to how advantages are paid. It is often paid each 4 weeks, with the precise day you obtain it similar to the final two digits of your nationwide insurance coverage (NI) quantity.

Here’s when try to be paid primarily based on these numbers:

The similar financial institution vacation fee date adjustments that apply to most advantages will even apply to state pension funds.

When will profit charges go up?

In April 2026, all common credit score claimants will obtain an above-inflation revenue enhance of round 6.2 per cent to the usual allowance. For a single individual over 25, this might be a £6 per week enhance, rising from £92 to £98.

For {couples} with one or each companion over 25, it is going to be a rise of £9 per week, rising from £145 to £154.

Most different advantages needs to be uprated by September’s inflation fee alone, growing by 3.8 per cent. This contains PIP, DLA, attendance allowance, carer’s allowance, ESA and extra.

However, on the similar time, the month-to-month fee fee for the health-related aspect of common credit score for brand new claimants might be minimize from £105 to £50. The fee for current claimants will even be frozen till 2029.

This is a discount of over £200 a month, reducing the extra fee by round half. This means it’s advisable for anybody who thinks they is perhaps eligible to use as quickly as they’ll.

The state pension will to rise by 4.8 per cent from subsequent April in keeping with annual earnings progress, the federal government has confirmed. This will deliver the weekly quantity to £241.05.

For extra details about the brand new profit charges, you’ll be able to learn The Independent’s information.

Other assist out there

Budgeting advance loans

The authorities provides a “budgeting advance loan” for individuals on common credit score who face an emergency lack of cash. The mortgage has a most compensation interval of two years.

These loans are interest-free and are robotically deducted from common credit score funds. You can borrow an “advance” of as much as:

Following Labour’s 2024 Budget, a brand new cap was launched on the quantity the DWP can deduct from profit funds to repay loans and money owed, together with budgeting advance loans.

Beginning in April 2025, deductions from common credit score have been capped at 15 per cent of the usual allowance, down from 25 per cent.

Discretionary Housing Payment

Households can apply to their council for a discretionary housing fee (DHP), which provides monetary help to go in direction of hire or housing prices.

You can solely get a DHP if you’re in receipt of housing profit or the housing aspect of common credit score. It can cowl housing prices for a hire shortfall, hire deposits and hire upfront if it’s good to transfer residence.

Exact eligibility and the funds out there are selected a council-by-council foundation, so you will want to get in contact together with your native authority to seek out out extra.

Household Support Fund

The family help fund (HSF), distributed by native councils, provides important help to these going through monetary hardship, complementing customary advantages and grants.

As a part of this authorities initiative, eligible households all through the UK can entry help akin to important home equipment, contributions in direction of utility payments, and direct money funds reaching as much as £300.

Local authorities are free to determine allocate their HSF funding to go well with households of their space, so precisely what is obtainable will differ. To apply, households must contact their council (most supply a web based kind).

This nationwide programme is ready to run till March 2026. The authorities has dedicated £1bn in funding to transition it right into a “Crisis and Resilience Fund” which can substitute the DHP.

Charitable grants

If you’re struggling financially, you could be eligible for sure charitable grants. There is a variety of grants out there relying in your circumstances.

However, these grants will usually require you to satisfy particular standards and are solely in a position to supply restricted funds.

Charitable grants can be found for people who find themselves disabled or sick, carers, bereaved, unemployed, college students, and for a lot of different causes. The charity Turn2us has a web based device to seek for grants which can be out there to some.

Energy supplier assist

Quite a few vitality suppliers supply assist for these fighting their vitality payments. These embody British Gas, Scottish Power, EDF, E.ON and Octopus. It is price contacting your vitality supplier to seek out out if you’re eligible.

Some additionally supply free gadgets like electrical blankets for households with susceptible residents to maintain heat.

Social tariffs for broadband and water

For these fighting family prices, social tariffs can be found for each broadband and water payments. This will imply a decreased fee for sure eligible households.

For water, each firm working within the UK has a social tariff by regulation. However, the quantity on supply can differ between areas and, as a result of water suppliers can’t be chosen like vitality suppliers, the help has been criticised as a “postcode lottery”.

For occasion, some supply as a lot as 90 per cent off payments, whereas others cap help at a 20 per cent discount.

To discover out what help your water firm provides, it’s price checking on its web site or contacting the helpline. In all circumstances, households will should be deemed to be on a low revenue and/or in receipt of sure advantages.

Similarly, many broadband suppliers supply social tariffs to these on sure advantages like common credit score or pension credit score. Regulator Ofcom has a information to what’s on supply.

Council tax discount

If you meet sure standards or are on sure advantages, you could possibly apply for a reduction in your council tax of as much as 100 per cent (that is typically referred to as council tax help).

Your native council should be capable to give you a discretionary discount when you can reveal you’re going through extreme hardship and might’t afford to pay your council tax.

To apply for a council tax discount, contact your native council by way of the federal government’s web site.

Up to 30 hours of free childcare

From 1 September 2025, all working dad and mom within the UK turned entitled to 30 hours of free childcare for kids as much as the age of 4. This concludes a gradual set of expansions that started in April 2024.

Parents should apply on-line and reconfirm their eligibility each three months, in time for every faculty time period. Working dad and mom also can apply for tax-free childcare, giving again 20p for each 80p you place in direction of childcare, as much as a most of £500 a yr.

Energy value cap: Is it going up?

Ofgem’s vitality value cap rose by two per cent in October, from £1,720 to £1,755. The £35 rise comes after a extra sizeable seven per cent lower for July to September, from £1,849 to £1,720.

For 1 January to 31 March 2026, it’s going to go as much as £1,758, Ofgem has confirmed – a rise of 0.2 per cent.

The vitality value cap is the utmost quantity vitality suppliers can cost you for every unit of vitality when you’re on an ordinary variable tariff. That contains most households. It is expressed as an annual invoice for a median residence.

Many consultants – together with Ofgem itself – are recommending households take into account a set tariff vitality deal, with many in the marketplace providing decrease than the worth cap fee.

Will there be one other price of residing fee in 2025?

The DWP haven’t introduced any continuation of the Cost of Living Payment scheme that ran between 2022 and 2024. The closing fee ought to have been made to eligible households between 6 February and 22 February 2024.

Mental well being help