DWP, Universal Credit and other money changes for benefits and bills for the coming weeks
Here are all the key dates to keep an eye out over the next month.
What changes are coming in to benefit and pension payments across July?
(Image: PA )
When it comes to money, I think it is fair to say that it is something that confuses us all. With the cost of living, inflation and everchanging benefit cuts there's no wonder why it is hard to get our head around things.
Over the next month we will see more changes again to our big financial decisions, including new energy price caps as well as the end of the mortgage guarantee scheme. You may be wondering, how will these various changes impact me and what support can I have?
Here are some things to look out for over the next month and some key dates to add to the diary. For money-saving tips, sign up to our Money newsletter here .
Universal Credit changes
Those who receive tax credits, income support, jobseeker's allowance, and housing benefits should have already received notice about moving over to Universal Credit. This is part of the DWP's aim to migrate all 'legacy benefits' to Universal Credit by January 2026.
It is an uncertain time for those who are concerned about Labour's planned changes to the welfare system, as it will see £5 million in cuts which will impact people across the country. You can read more about these changes here.
Thankfully, we still have some time before these plans come into effect as rates for Universal Credit will change in April 2026. This change will see those who are receiving the benefit's standard allowance have a one-off above inflation rise by £7 a week, taking it from £91 to £98.
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This comes after April 2025's announcement that all benefits were uprated by 1.7 per cent, matching the September 2024 inflation figure. This applied to all working-age benefits, including universal credit, PIP, DLA, attendance allowance, carer's allowance, ESA and more.
Is the Energy Price Cap going up?
Every 3 months OFGEM review and set a level for much energy suppliers can charge for each unit of energy and daily standing charge under the price cap. The energy price cap for the third quarter of the year will come into effect on 1 July. This will then run until 30 September 2025.
They have said that "the price for energy for a typical household who use electricity and gas and pay by Direct Debit will go down by 7% to £1,720 per year. For a typical household, this will reduce their energy bills by £11 a month."
You can read more about OFGEM's announcement here.
It's also worth mentioning that there isn't actually an absolute cap on what you can pay for energy. What the Ofgem price cap does is set a limit on the charges per unit and standing charges.
Key dates to make note of:
State pension payments
The basic state pension is usually paid every four weeks straight in to your bank accounts. The exact day you receive it will correspond with the last two digits of your national insurance (NI) number.
Here's when you should be paid based on those numbers:
00 to 19: Monday
20 to 39: Tuesday
40 to 59: Wednesday
60 to 79: Thursday
80 to 99: Friday
June 30 - take an energy meter reading
The Ofgem energy price cap is slated to drop by 7% from July, bringing the average annual bill down from £1,849 to £1,720. It's advisable to take a meter reading around June 30 to avoid being inadvertently charged at the higher rates.
It's also worth mentioning that there isn't actually an absolute cap on what you can pay for energy. What the Ofgem price cap does is set a limit on the charges per unit and standing charges.
June 30 - RTS switch off
There are still approximately 300,000 radio teleswitch service (RTS) meters in households - but these will be deactivated on June 30. If you possess one of these meters, it's necessary to upgrade to a smart meter or risk having your heating permanently switched off - or perpetually stuck on.
June 30 - end of the mortgage guarantee scheme
The mortgage guarantee scheme, established in 2021, enables first-time buyers to secure a mortgage with a 5% deposit, with the Government pledging to cover some costs if your lender incurs losses. This scheme will conclude on June 30.
1 July - New energy price cap
The energy price cap for the third quarter of the year will come into effect on 1 July. This will then run until 30 September 2025.
It's also worth mentioning that there isn't actually an absolute cap on what you can pay for energy. What the Ofgem price cap does is set a limit on the charges per unit and standing charges.
31 July - Second payment on account
By the end of July, those who are self-employed will need to make their second and final payment on account for the 2024-2025 tax year. You can find more information on this on the gov.uk website here.
These payments are calculated based on your estimated earnings, so the amount you earned the previous year. If you ended up earning more than estimated, you may still have tax to pay on top of your payments on account. This is known as a 'balancing payment'. If you earn less than estimated, you may be able to claim a tax refund.
Benefit payment dates in July
Benefit payments will be made as usual in July, with no changes to the schedule since there are no bank holidays. These include:
Personal independence payment (PIP)
Attendance allowance
Carer's allowance
Employment support allowance
Income support
Jobseeker's allowance
Universal Credit
State pension
Pension credit
Child benefit
Disability living allowance
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For more information on financial support and Universal Credit you can visit the gov.uk website here.
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