In the run-up to Christmas, millions of UK households are set to receive early salary payments and government benefits. While these advanced payments may seem like a timely boost for festive expenses, they come with a hidden risk.
The Department for Work and Pensions (DWP) and employers are advancing their disbursements due to the Christmas and New Year bank holidays. But with the next payment scheduled for late January, many could face a longer-than-usual wait and find themselves caught in what MoneySavingExpert has called a “December pay trap”.
Early Payments Aim to Ease Holiday Pressures
Most employers are expected to release December wages earlier than usual to accommodate the festive period. According to a warning issued by MoneySavingExpert on X, this can offer short-term relief but often causes problems further down the line. “While this can be helpful for many, it also means your next pay day is even further away,” the platform posted, adding, “you could risk running out of money before then.”
The Department for Work and Pensions has confirmed that payments due on Christmas Day and Boxing Day, 25 and 26 December, will be made on Christmas Eve. Payments scheduled for New Year’s Day will be issued on 31 December. The earlier issue of these funds may support immediate needs over the holidays, but it extends the gap before January’s payments by several days, increasing the risk of post-holiday financial strain.
There will be no changes for those receiving Child Benefit this year, as Christmas Day falls on a Thursday and Boxing Day on a Friday, which do not affect the benefit’s normal schedule. According to BirminghamLive, Child Benefit payments are only processed by HMRC on Mondays and Tuesdays, so their timeline remains unaffected.
One in Three UK Residents Affected as Key Benefits Also Shift
The impact of this schedule change is widespread. According to BirminghamLive, roughly 24 million people in the UK currently claim one or more benefits administered by the DWP, including Universal Credit and the State Pension. This accounts for nearly one in three individuals, meaning the altered payment dates will affect a substantial proportion of the population.
Among the benefits subject to rescheduling this month are Universal Credit, State Pension, Pension Credit, Disability Living Allowance (DLA), Personal Independence Payment (PIP), Attendance Allowance, Carer’s Allowance, Employment Support Allowance (ESA), Income Support, and Jobseeker’s Allowance (JSA).
While these changes are in line with previous years, the financial pressure caused by an extended gap between December and January payments remains a consistent concern. Those who find their benefits have not arrived as expected are advised to contact the Department of Work and Pensions directly at 0800 328 5644.
According to MoneySavingExpert, the best approach is to anticipate the delay and plan spending accordingly. “This is your reminder to plan ahead, budget accordingly and make sure you don’t leave yourself high and dry for the New Year,” the platform stated. Awareness of incoming and outgoing expenses is especially important during this period, as failing to adjust can result in households running short before the next scheduled payment arrives.
