As the new year begins, millions of households across the UK continue to face significant financial pressure. With inflation easing but prices remaining high, and household debts mounting, accessing all available support is crucial.
Key Payment Dates for January 2026
Most Department for Work and Pensions (DWP) benefits will be paid as usual in January. These include Universal Credit, the state pension, Child Benefit, and Personal Independence Payment (PIP). However, due to the New Year's Day bank holiday on Thursday 1 January, anyone scheduled to receive a payment on that date will instead be paid on Wednesday 31 December 2025.
Similar adjustments apply for the Christmas period. Payments due on Christmas Day (25 December) or Boxing Day (26 December) were brought forward to Christmas Eve (24 December).
The DWP is aiming to complete its migration of all legacy benefits, such as tax credits and housing benefit, to Universal Credit by the end of January 2026.
Financial Support Available This Winter
Against a challenging economic backdrop, with 14 million adults reportedly skipping meals due to affordability, several support schemes are in place.
The Cold Weather Payment scheme has been reactivated for winter 2025/26. This provides a £25 payment for each seven-day period where local temperatures are at or below zero degrees Celsius. Over one million households in more than 800 postcodes are estimated to be eligible.
The Household Support Fund (HSF), distributed by local councils, offers grants for essentials like energy bills and appliances. This fund is set to run until March 2026, after which it will transition into a new Crisis and Resilience Fund.
Other available help includes Discretionary Housing Payments for rent shortfalls, social tariffs for broadband and water bills, and council tax reductions of up to 100% for those on low incomes.
Benefit and Pension Increases for 2026
From April 2026, benefit rates will see an uplift. Universal Credit standard allowances will rise by approximately 6.2%. This means a single claimant over 25 will see a weekly increase from £92 to £98.
Most other benefits, including PIP and Carer's Allowance, are set to increase by 3.8%, in line with the previous September's inflation rate. However, the health-related element of Universal Credit for new claimants will be cut from £105 to £50 per month.
The state pension will increase by 4.8% from April 2026, taking the weekly amount to £241.05.
For those struggling, interest-free Budgeting Advance loans are available through Universal Credit, with repayments now capped at 15% of the standard allowance. Energy suppliers also offer assistance schemes, and working parents can access up to 30 hours of free childcare.
Charities warn that low-income families face the worst fall in living standards on record, emphasising the importance of claiming all entitled support. An estimated £24 billion in benefits goes unclaimed each year.
