Three Universal Credit and benefit changes coming next month – are your payments affected?
TO YOUR BENEFIT Three Universal Credit and benefit changes coming next month – are your payments affected?
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THREE major changes to Universal Credit and benefits are coming next month.
It's crucial to understand how they might impact you and your household.
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We've listed all the big benefit changes coming in August
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Hundreds of thousands of households on benefits will need to take action and switch to Universal Credit.
Meanwhile, benefit claimants can expect early payments next month due to the August bank holiday.
Plus, parents will need to make a note of a key child benefit deadline.
Here are all the big benefit changes coming in August.
Move to Universal Credit
Hundreds of thousands of households currently receiving a benefit, which is soon to be axed, are being urged to keep an eye out for important letters.
The managed migration process officially began back in July 2022 after a successful pilot in July 2019.
Since then, households receiving one of five legacy benefits, have been receiving postal notifications outlining the steps required to transition to Universal Credit.
Upon receiving a migration letter, claimants are given up to three months to make the switch.
Failure to act within this timeframe could result in the loss of existing benefits.
The Department for Work and Pensions (DWP) has already closed new claims for four legacy benefits - tax credits, income support, income-based jobseeker's allowance, and housing benefit.
Households still receiving income-related employment and support allowance (ESA) are now being urged to make the move to Universal Credit.
ESA provides financial support for those unable to work due to illness or disability.
Initially, the government planned to transfer all ESA claimants to Universal Credit by the end of 2028.
However, this deadline has since been brought forward to March 2026.
Three key benefits that YOU could be missing out on, and one even gives you a free TV Licence
Benefits paid early
Thousands can expect to see their benefit payments land earlier than usual next month.
This is because when the day payments are due falls on a bank holiday or the weekend, payments are made on the first working day before.
It means those expecting benefit payments on the August bank holiday, August 25, will actually see payments land in their accounts on August 22.
Anyone expecting them on August 23 or 24 will also receive their money on August 22.
The Department for Work and Pensions (DWP) and HMRC have confirmed the following benefits will be made early in August:
Attendance allowance
Carer's allowance
Disability living allowance
Income support
Jobseeker's allowance
Pension credit
Personal independence payment (PIP)
State pension
Universal Credit
Child benefit (paid by HMRC)
If you are expecting your benefit payment on August 22 and don't receive it, contact DWP.
You can also submit a complaint to the government department to get a problem sorted if your payment is wrong.
Other bank holidays this year
AFTER August, there are two more bank holidays before the end of the year which could impact when you receive your benefits.
Here's when DWP or HMRC will make your payments: December 25 - payments will be made on December 24 instead
- payments will be made on December 24 instead December 26 - payments will be made on December 24 instead
Child benefit deadline
Parents have just weeks to take action or they could risk losing their child benefit payments.
The taxman is posting thousands of letters to parents of teenagers asking them to give an update about their future education plans.
Child benefit is currently worth £26.05 a week for the eldest child or only child.
For each subsequent child, parents get £17.25 a week.
However, payments automatically stop on August 31 on or after the child has turned 16 unless parents renew their claim when their child is continuing in education.
The parents of children who are furthering their education have until August 31 to tell HMRC or their payments will automatically stop.
Parents can continue to receive the cash boost up until their child is 19, and enrolled in an apprenticeship program or the following education schemes:
A levels or Scottish Highers
International Baccalaureate
home education - if it started before their child turned 16, or after 16 if they have a statement of special educational needs and it was assessed by the local authority
T levels
NVQs, up to level 3.
Child benefit will also continue for children studying on one of these unpaid approved training courses:
In Wales: Foundation Apprenticeships, Traineeships or the Jobs Growth Wales+ scheme
In Northern Ireland: PEACEPLUS Youth Programme 3.2, Training for Success or Skills for Life and Work
In Scotland: Employability Fund programme and No One Left Behind
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