The Department for Work and Pensions (DWP) will bring forward benefit payments to Friday 28 August, ahead of the August bank holiday weekend. The early payment arrangement applies to all major benefits, including the new state pension, which is worth £241 a week for those born after 1951 (men) or 1953 (women).
Sir Stephen Timms, Labour's Minister for Social Security and Disability, confirmed the move in a statement. He said: “We’re pleased to confirm that benefit payments due on the August bank holiday will be paid earlier. This will help ensure families and older people receive their money without disruption over the bank holiday period.”
The early payment means recipients will receive their money sooner than expected. Many had previously assumed they would be paid on 31 August, which is the bank holiday Monday. Instead, payments will land on Friday 28 August, giving new state pensioners up to £965 before the weekend.
How the early payment works
The early payment arrangement applies to all major benefits, including the state pension. Recipients who are paid monthly can calculate their next payment date by counting four weeks forward from their last payment date and checking whether it falls on a bank holiday. If it does, the payment will be made early.
After the bank holiday, payment dates will return to normal. The amount paid will be exactly the same, and it will be paid into the recipient's regular bank account as usual. The only difference is that recipients will need to make their money last longer, as there will be a slightly longer wait until the next payment.
State pension amounts and eligibility
The full new state pension is currently £241.30 a week. To receive this amount, most people will need at least 35 qualifying National Insurance (NI) years, although some may need more. Crucially, qualifying years earned before 6 April 2016 count towards the total, so workers do not have to start from scratch from that date.
Some people can receive more than £241.30 a week. Under previous state pension rules, workers could build up an additional state pension, also known as the state second pension, S2P, or SERPS. This was a top-up to the former basic state pension. Although current rules have scrapped this top-up, the government has allowed many workers in their 40s, 50s, and early 60s to keep their existing entitlement.
Martin Lewis warns of complexity
Money Saving Expert, the site founded by Martin Lewis, notes that calculating the number of NI years needed for a full state pension is not straightforward. The site says: “Because anyone retiring now (or soon) likely built up most of their NI record before 2016, the calculation of how many years you need to get the full State Pension isn't straightforward.”
The early payment is part of the government's wider efforts to support households. Sir Stephen Timms added: “This Government is determined to ensure people up and down the country have the support and breathing room they need, which is why we’ve acted to take money off energy bills, increase the National Minimum Wage and lift half a million children out of poverty, as well as supporting people into good, secure jobs.”
