Sami
As the summer holidays come to a close, UK households may experience a slight break from increased expenses. However, for many, the cost of living crisis is far from over.
Despite inflation falling to pre-pandemic levels, the price of essential goods remains high, and wages have stagnated—leaving millions in financial distress.
Key Findings on Current Financial Struggles
A recent report by the Resolution Foundation highlights that essential goods continue to cost significantly more than before the 2022 crisis peak. Compounding this issue, many families now face growing household debt just to cover the basics.
- Food insecurity remains a major concern, with 7.3 million adults—or 13.9% of households—reporting issues in January 2025, according to The Food Foundation.
- Energy debt has skyrocketed to £3.9 billion by the end of 2024, more than double what it was five years ago.
Unclaimed Benefits: A Massive Missed Opportunity
Despite around 24 million people currently receiving some form of DWP-administered benefits, an alarming £23 billion in benefits goes unclaimed each year. This includes support for housing, childcare, disability, and other essential needs.
Tip: Use online benefits calculators to check if you’re eligible for additional financial help.
Benefit Payment Dates for September 2025
There are no bank holidays in September, so benefit payments will be made as scheduled. These include:
- Universal Credit
- State Pension
- Pension Credit
- Child Benefit
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Attendance Allowance
- Carer’s Allowance
- Employment Support Allowance (ESA)
- Income Support
- Jobseeker’s Allowance (JSA)
The DWP is continuing to shift claimants from legacy benefits (such as Income Support, JSA, Housing Benefit, and Tax Credits) to Universal Credit, with full migration expected by January 2026.
State Pension Payment Dates – September 2025
State pension payments are typically made every four weeks, directly into your bank account. The payment day is based on the last two digits of your National Insurance (NI) number:
| NI Number Ending | Payment Day |
|---|---|
| 00–19 | Monday |
| 20–39 | Tuesday |
| 40–59 | Wednesday |
| 60–79 | Thursday |
| 80–99 | Friday |
When Are Benefits Increasing Next?
In April 2025, working-age benefits were increased by 1.7%, aligned with the September 2024 inflation rate. This included:
- Universal Credit
- PIP
- DLA
- Attendance Allowance
- Carer’s Allowance
- ESA
- and others
Meanwhile, the State Pension rose by 4.1%—an increase of around £472 per year—due to the triple lock mechanism.
Upcoming Increases: April 2026 and Beyond
Beginning April 2026, Universal Credit recipients will receive above-inflation increases due to new legislation introduced by Labour. These annual increases will continue through 2029, starting with a 2.3% rise.
However, the health-related component of Universal Credit for new applicants will be cut from £105 to £50 per month, and this reduced rate will remain frozen until 2029.
This represents a reduction of over £200 per month, so anyone who may be eligible is strongly encouraged to apply before the new rates take effect.
While inflation rates may have stabilized, the financial strain on UK households—particularly low-income and vulnerable groups—remains heavy.
From unclaimed benefits to major changes in Universal Credit and state pensions, it’s more important than ever to stay informed and take proactive steps to claim all available support.
With key payment dates and policy changes ahead, September serves as a crucial moment for individuals and families to review their entitlements and prepare for the future.
FAQs
How can I check if I’m missing out on unclaimed benefits?
You can use online benefit calculators like those provided by nonprofit organizations to check for eligibility based on your income, housing situation, and dependents.
When will the Universal Credit rates increase again?
The next above-inflation increase for Universal Credit is scheduled for April 2026, with annual increases continuing through 2029.
Will pensioners also see a rise in income?
Yes, under the triple lock, state pensions were already increased by 4.1% in April 2025, and future increases will depend on wage growth, inflation, or 2.5%, whichever is highest.