People on benefits could be getting their payments three days early due to the August bank holiday
The Department for Work and Pensions is set to alter payment dates for several benefits due to the August bank holiday. Those who were scheduled to receive their benefit payments on 25th August will now get their money three days earlier, on Friday, 22nd August.
Minister for Social Security and Disability, Sir Stephen Timms, stated: “We know how much families rely on these payments, and by bringing them forward ahead of the bank holiday we’re ensuring no one has to worry about whether their support will be there when they need it most.”
However, while an early payment may seem like a boost to household budgets, experts are cautioning that it can leave people struggling to make ends meet the following month.
Fiona Peake, Personal Finance Expert at Ocean Finance, explained: “Getting your money on Friday instead of the Monday might feel like a win going into the long weekend, but it means you’ll have three extra days to stretch it.
“That can throw your budget out, especially if you’re living week to week. It’s not always easy to hold back spending when your account’s just been topped up but blowing through your benefit early could leave you short when it really matters.
“Some people get caught out by thinking they’ll always get their benefits early around a bank holiday. That’s not the case.
“If your next due date falls on a normal working day, your payment will be back to its usual timing and if you’ve spent early, you might already be playing catch-up.”
Most major benefits will be affected by the bank holiday including:
- Universal Credit
- State Pension
- Personal Independence Payment (PIP)
- Carer’s Allowance
- Jobseeker’s Allowance (JSA)
- Employment and Support Allowance (ESA)
- Income Support
- Attendance Allowance
- Pension Credit
The expert offered some guidance to help people manage the additional three days their benefit payments will need to cover until their September payment arrives. Starting with adjusting your approach to the altered payment date.
She explained: “Don’t think of the early payment as a bonus. It’s not.
“Treat Friday 22 August like it’s your usual payday and plan your week as normal. It may sound extreme, but if you’ve got a habit of splurging as soon as money lands, hit pause.
“Most banking apps let you freeze your debit card instantly. It gives you a cooling-off period before impulse buys.”
Furthermore, people will need to be mindful of when their bills or automatic payments are deducted from their accounts as this could also be modified due to the bank holiday. Fiona advised: “The early payment might not line up with when your bills go out, and that can leave you short just as rent or utilities come calling.
“Log into your bank now and check your Direct Debit dates.” Finally, households can also brace themselves now for a potential shortfall next month by stocking up on essentials like pasta, rice and tinned goods or utilising the round-up savings approach now whilst they have the early windfall.
Fiona said: “That way, if money’s tight in the last few days before your next payment, you’ve got back-up.”