August bank holiday 2026 benefit payment date changes and cost of living support

The summer is usually a time when cost-of-living pressures are less intense, with energy demand low and the shock of April’s bill increases becoming part of the normal expenses.

But the summer holidays can also bring extra expenses for parents as kids enjoy their six weeks away from school.

At the same time, concerns remain around the disruption caused by the US-Iran war and back-to-back heatwaves which have plunged large parts of the UK into official drought conditions.

Both threaten to bring knock-on effects to the price of essentials such as energy and fuel, as spiking oil prices and poor domestic crop yield drives up supplier costs.

Inflation nevertheless fell to 2.6 per cent in the year to June, defying expectations of an uptick. Easing prices for products like motor fuel, chocolate and beef contributed to the dip, although experts still predict prices will begin to rise again.

A record 7.4 million households are now unable to afford at least one essential item, recent research by the Joseph Rowntree Foundation found, up from 7.1 million a year ago.

Against this difficult economic backdrop, households should claim all the support they are entitled to. There are now around 24 million people in the country claiming some combination of Department for Work and Pensions (DWP) administered benefits , which include those drawing a state pension, representing around one in three people.

Yet research by Policy in Practice shows that £24bn worth of benefits goes unclaimed every year – you can use its helpful calculator to work out what you might be entitled to.

Are you struggling with the DWP or the cost of living? Share your story: [email protected]

Here is an overview of the financial support available to households this August and key dates for benefit and state pension recipients to look out for:

Benefit payments will go out as usual for the most part in August, but there are bank holiday dates to be aware of depending on where you live. These include:

England, Wales and Northern Ireland have the Summer Bank Holiday on Monday 31 August. Scotland has this holiday earlier, on Monday 3 August. Payment dates which fall on bank holidays will be made on the previous working day, the DWP has confirmed.

For more information on how and when state benefits are paid, visit the government’s website.

The DWP has now completed its migration of all ‘legacy benefits’ to universal credit, it confirmed to The Independent in July , with just a few claimants remaining on the old system in exceptional circumstances.