The Department for Work and Pensions (DWP) has announced a significant temporary overhaul to the payment dates for state pensions and key benefits, including Universal Credit, at the start of January 2026.
Why Payment Dates Are Changing
The shift is due to the standard DWP policy that when a scheduled payment date falls on a weekend or bank holiday, funds are typically issued on the preceding working day. With New Year's Day (Thursday, 1 January 2026) and, in Scotland, January 2nd both being bank holidays, payments for that period will be brought forward.
This means that claimants and pensioners who usually receive their funds on the first day of the month will get their money on Wednesday, 31 December 2025 instead. The DWP has confirmed this applies across a wide range of support payments.
Which Benefits Are Affected?
The early payment on December 31st will impact a substantial list of DWP and HMRC-administered benefits. The key payments affected include:
- State Pension
- Universal Credit
- Pension Credit
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Employment and Support Allowance (ESA)
- Jobseeker’s Allowance
- Income Support
Other benefits moving to the earlier date are Attendance Allowance, Carer’s Allowance, and HMRC's Child Benefit, though the DWP notes the rule "may be different for Child Benefit."
Specific Rules for Scottish Claimants
There is an important additional provision for residents of Scotland. Because January 2nd is also a bank holiday there, the change also applies to claimants who normally receive any of the specified benefits on the second of the month. They, too, will be paid on December 31, 2025.
The DWP reiterated its standard process, stating: "Benefits are usually paid straight into your bank, building society or credit union account. If your payment date is on a weekend or a bank holiday you’ll usually be paid on the working day before."
This one-off adjustment is a logistical measure rather than a permanent change to benefit schedules. Recipients should plan their budgets accordingly for the end of 2025, noting their funds will arrive before the New Year's celebrations begin.
