In a landscape where nearly £23 billion in benefits and financial help goes unclaimed each year, the Department for Work and Pensions (DWP) is urging individuals to familiarize themselves with their entitlements as May 2025 approaches. Many people are unaware of the financial support available to them, often due to stigma surrounding benefits and the complexities of the system. This article breaks down essential information regarding benefits and pensions for May 2025, including payment dates, eligibility, and significant changes on the horizon.
For those relying on DWP benefits, payment dates in May will vary depending on the specific benefits received and the date of the first payment. Universal Credit, for instance, is paid monthly, while Attendance Allowance, Disability Living Allowance, Pension Credit, Personal Independence Payment (PIP), and State Pension are disbursed every four weeks following the initial payment date. Additionally, Carer’s Allowance, tax credits (from HMRC), and Child Benefit can be paid weekly or every four weeks, while Maternity Allowance is issued every two or four weeks.
As the May bank holidays approach, recipients should note that if a benefit payment is due on a weekend or holiday, it will be paid on the last working day prior. For example, if a payment is due on May 5, it will likely be received on May 2, and payments due on May 26 will probably arrive on May 23.
State Pension payments, typically made every four weeks, depend on the recipient's national insurance number. For those with NI numbers ranging from 00 to 19, payments will be made on Mondays; 20 to 39 on Tuesdays; 40 to 59 on Wednesdays; 60 to 79 on Thursdays; and 80 to 99 on Fridays. Importantly, the first payment of the State Pension will occur no later than five weeks after the claim date.
In April 2025, benefits saw a rise of 1.7%, yet some Universal Credit claimants may not see this increase until June 2025 due to the timing of their assessment periods. As for the State Pension, it increased by 4.1% in April 2025, bringing the full, new flat-rate pension to £230.25 weekly for those who reached state pension age after April 2016.
Eligibility for benefits in May 2025 extends to various groups, including those who are working or unemployed, sick or disabled, parents, young people, older adults, and veterans. Individuals can utilize benefits calculators available through organizations like Turn2Us, Policy in Practice, and entitledto to determine their potential entitlements. Citizens Advice also offers resources to navigate available financial support.
As for the payment timing, recipients should be aware that DWP employs the Bankers’ Automated Clearing Services (BACS) payment validation process, which often results in payments being deposited between midnight and early morning. If a payment doesn’t arrive on the expected date, it’s advisable to check the payment date on the awards notice and contact the bank to verify if any payments are pending. If the payment is still missing, contacting the relevant office that handles the benefit or pension is crucial.
Looking ahead, the DWP has announced several changes to the benefits system. Among the positive updates is an increase in Universal Credit for single individuals aged 25 and over by £7 a week in 2026 to 2027. Additionally, claimants will have the 'right to try' work without risking their benefits, and employment support for benefit claimants will be enhanced. However, the changes also include cuts to disability benefits, tightening eligibility criteria for PIP, and freezing the health element of Universal Credit.
As part of the ongoing cost of living crisis, the DWP has introduced an extra £230 payment for pensioners, effective from April 7, 2025. This payment aims to alleviate financial pressures but is only available to low-income pensioners receiving means-tested benefits like Pension Credit. The government’s decision to restrict eligibility has significantly reduced the number of beneficiaries from 10.8 million to 1.5 million pensioners.
To qualify for this extra payment, individuals must be of State Pension age, receiving the State Pension as of April 7, 2025, and enrolled in a means-tested benefit. Qualifying benefits include Pension Credit, Universal Credit (if a pensioner), Income Support, Income-Based Jobseeker’s Allowance (JSA), and Income-Related Employment and Support Allowance (ESA). Those who are not currently receiving Pension Credit but believe they may be eligible are encouraged to apply promptly to avoid missing out.
The extra £230 payment will be included in Winter Fuel Payments, typically sent out between November and December 2025. Eligible pensioners should receive their payments by January 29, 2026. Furthermore, pensioners can access additional support such as Winter Fuel Payments, Cold Weather Payments, and Council Tax reductions, among others.
In the realm of financial updates, May 2025 will also see significant changes affecting personal finances. NatWest is set to take over Sainsbury’s Bank on May 1, 2025, in a deal valued at around £2.5 billion. This transition will affect Sainsbury’s Bank customers with personal loans, credit cards, and savings accounts, which will be transferred to NatWest.
Additionally, penalties for late tax returns will begin on May 1, 2025, accumulating at £10 a day until they reach £900. The latest inflation update from the Office for National Statistics (ONS) will be released on May 21, 2025, with expectations of a rise following recent increases in energy bills. On May 29, Nationwide is expected to confirm whether it will distribute another round of £100 bonuses, based on its financial performance.
As the financial landscape continues to evolve, individuals are encouraged to stay informed and proactive about their financial rights and entitlements. The DWP’s initiatives and the financial changes coming in May 2025 present both challenges and opportunities for many across the UK.
