The payment dates for social assistance and pension payments for January 2026, along with details of the cost of living allowance, have been announced. Important details regarding the cost of living that should be known as the new year begins have been announced.
As 2026 approaches, many households are continuing to feel the strain of rising bills combined with colder weather. For millions of people, everyday costs remain difficult to manage as incomes struggle to keep pace with higher prices.
There has been some limited relief. Inflation dropped notably to 3.2 per cent in November, down from 3.6 per cent, driven mainly by cheaper clothing and food. This does not mean prices are falling, but that their rate of increase has eased, while wages have shown little real improvement. At the same time, high household bills continue to push many families into greater debt just to meet basic living costs.
Recent research highlights the scale of the challenge. Around 14 million adults are reported to be skipping meals because they cannot afford food, while energy debt has more than doubled in five years, reaching £4.4bn by the end of June. The Joseph Rowntree Foundation has warned that low-income households are heading towards the sharpest fall in living standards on record by the next general election.
Against this backdrop, it is crucial that people claim all the support they are entitled to. Around 24 million people currently receive some form of state support, including pensions. Even so, an estimated £24bn in benefits goes unclaimed each year, according to Policy in Practice.
Below is an overview of support available in January 2026 and the key payment dates to be aware of.
Benefit Payment Dates In January
Most benefit payments will be made as usual in January, including universal credit, state pension, pension credit, child benefit, disability and carer-related payments, and jobseeker and income support.
One important exception is New Year’s Day. Anyone due a payment on Wednesday 1 January should receive it early, on Tuesday 31 December. Similar changes apply around Christmas, with payments due on Christmas Day or Boxing Day also being brought forward to Christmas Eve.
The transition of remaining legacy benefits to universal credit is expected to be completed by January 2026, with affected claimants already notified.
Pension Payment Dates In January
The basic state pension is paid every four weeks, directly into bank accounts. Payment days depend on the final two digits of a person’s national insurance number, ranging from Monday to Friday. Bank holiday changes apply in the same way as for other benefits.
When Will Benefit Rates Increase?
From April 2026, universal credit standard allowances will rise by around 6.2 per cent. Single claimants over 25 will see weekly payments rise by £6, while couples will receive around £9 more per week.
Most other benefits will increase in line with inflation at 3.8 per cent. However, the health-related element of universal credit for new claimants will be reduced, while existing rates will be frozen. The state pension is set to rise by 4.8 per cent, taking weekly payments to £241.05.
Other Support Available
Additional help includes budgeting advance loans for emergency costs, discretionary housing payments from councils, and the household support fund, which offers targeted assistance such as help with bills or essential items.
Charitable grants may also be available depending on personal circumstances, while many energy suppliers offer hardship schemes and practical support. Reduced “social tariffs” for broadband, water and council tax are available to eligible households, although support levels vary by area.
Working parents can also benefit from up to 30 hours of free childcare for young children, alongside tax-free childcare support.
Energy Prices And Cost Of Living Payments
The energy price cap is due to edge up to £1,758 for the first three months of 2026. No additional cost of living payments have been confirmed since the previous support scheme ended in early 2024.
Mental Health Support
People who are struggling can seek confidential help through a range of support services, including helplines and online resources, which provide emotional support and advice for those dealing with mental health pressures or the benefits system.