Kuni Lingston
As the cost of living continues to stretch household budgets across the UK, millions are relying on government support to stay afloat.
From benefits and state pensions to cost of living assistance, July 2025 brings crucial updates and payment schedules that can make a real difference in everyday life.
Understanding exactly when payments arrive—and what additional help is available—ensures no one misses out.
Who Receives Payments in July 2025?
Across the country, over 24 million people receive some form of government-administered support. These include:
- Universal Credit
- State Pension
- Pension Credit
- Child Benefit
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Attendance Allowance
- Carer’s Allowance
- Employment and Support Allowance (ESA)
- Income Support
- Jobseeker’s Allowance (JSA)
All benefits are expected to be paid on schedule throughout July, as there are no bank holidays to impact the regular payment cycle.
State Pension Payment Dates in July
The state pension is paid every four weeks. Payment days are determined by the last two digits of your National Insurance (NI) number.
| NI Number Ends In | Payment Day |
|---|---|
| 00–19 | Monday |
| 20–39 | Tuesday |
| 40–59 | Wednesday |
| 60–79 | Thursday |
| 80–99 | Friday |
Make sure your payment lands on the day associated with your number. Direct deposit ensures you receive it on time.
Have Benefits Increased in 2025?
Yes. In April 2025, a 1.7% increase was applied to most working-age benefits including:
- Universal Credit
- PIP
- DLA
- Carer’s Allowance
- ESA
- Attendance Allowance
In addition, the state pension saw a 4.1% increase under the triple lock formula, adding approximately £472 per year to pensioners’ incomes.
Additional Support Available in July
Cost of Living Payment – £450
Eligible recipients, such as those on Universal Credit or Pension Credit, may receive a £450 cost of living payment. Payments began rolling out in June and are continuing through July for those who qualify.
Budgeting Advance Loans
For those on Universal Credit, interest-free loans are available to help cover emergency costs. Repayment is automatically deducted from future benefits.
| Category | Max Loan Amount |
|---|---|
| Single applicant | £348 |
| Couple | £464 |
| With children | £812 |
As of April 2025, repayments are capped at 15% of the Universal Credit standard allowance.
Discretionary Housing Payment (DHP)
If you receive Housing Benefit or the housing element of Universal Credit and still struggle to cover rent, you may be eligible for a DHP from your local council. This can help cover:
- Rent shortfalls
- Rent deposits
- Rent in advance
Eligibility and amounts vary by council, so it’s important to apply directly with your local authority.
Household Support Fund (HSF)
The Household Support Fund remains active, with payments available for families facing hardship. Depending on your local council, this could include:
- Direct payments up to £300
- Utility bill support
- Essential household items
This fund is set to run until March 2026, with additional funding committed to evolve it into a national Crisis and Resilience Fund.
Childcare Support & Council Tax Relief
Childcare
- 30 hours of free childcare is now available to all children under 5 as of September 2025.
- Parents of 2-year-olds and above may already be receiving 15 free hours, depending on the child’s age and household circumstances.
- Apply online and renew eligibility every 3 months.
Council Tax
You may be entitled to a Council Tax reduction if you’re on certain benefits or face financial hardship. In some cases, the discount could be up to 100%. Local councils manage eligibility, so contact yours directly to apply.
Energy Price Cap Update
Good news for July: the energy price cap has decreased by 7%, lowering the average annual bill from £1,849 to £1,720. This change affects most households on standard variable tariffs, offering much-needed relief amid high utility bills.
July 2025 Payment & Support Snapshot
| Support Type | Key Info |
|---|---|
| Universal Credit | Paid as scheduled |
| State Pension | Based on NI number, paid weekly |
| Benefits Increase | +1.7% from April |
| State Pension Increase | +4.1% from April |
| Cost of Living Payment | £450 rolling out |
| Budgeting Advance Loans | Max £812, 15% repayment cap |
| Household Support Fund | Up to £300, available via councils |
| Free Childcare | 30 hours for under 5s by Sept 2025 |
| Energy Price Cap | Dropped to £1,720 for most homes |
July 2025 brings a welcome sense of financial consistency for millions across the UK. With benefit and pension payments running on schedule, increased payment rates, and extra help through cost-of-living payments, advance loans, rent support, and free childcare, households can better manage their expenses this summer.
Still, it’s crucial to ensure you’re claiming everything you’re entitled to. Billions of pounds in benefits go unclaimed each year.
By checking eligibility, applying for local support programs, and staying informed, you can make the most of what’s available and protect your financial wellbeing.
FAQs
Will my benefit be paid on time in July?
Yes, there are no bank holidays this month, so all benefit and pension payments should be made on their regular schedule.
How do I apply for the £450 cost of living payment?
There’s no need to apply. If you’re eligible, the payment will be made automatically based on your benefits status.
Can I get extra support for rent?
Yes. If you’re receiving housing-related benefits, you can apply for a Discretionary Housing Payment from your local council.