DWP announces extra £475 for households with shake-up of benefit payments

Thousands of UK households are set to be handed a financial boost this month, thanks to several winter payments and changes taking shape. The recent Budget announcement confirmed an increase in benefits and state pensions, as well as a pay increase for minimum wage workers from April.

Despite introducing £40 billion a year in extra taxes, the government aims to "drive up opportunity and drive down poverty" across the country. Chancellor Rachel Reeves has vowed to "protect working people", with millions braced to benefit from the reforms, reports LeedsLive.

Some changes unravel this month, while others will be rolled out a bit later on. Here are six key money changes and payments happening this month and their impact on your finances:

READ MORE: DWP claimants on Universal Credit can claim back £26,871 on everyday bills

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Winter Fuel Payment - £300

If you live in England or Wales, were born before September 23, 1958, and claimed certain benefits between September 16-22, 2024, you may be eligible for £200 or £300 to help with heating bills. Eligible benefits include:

• Pension Credit

• Universal Credit

• Income-related Employment and Support Allowance (ESA)

• Income-based Jobseeker's Allowance (JSA)

• Income Support

• Child Tax Credit

• Working Tax Credit

The majority of payments are typically processed automatically in November or December. Eligible recipients will receive a letter from the Department for Work and Pensions ( DWP ) detailing the amount to be received and the bank account it will be deposited into, normally the same one used for Pension Credit or other benefits.

If you haven't received a letter or payment by January 29, 2025, get in touch with the Winter Fuel Payment Centre.

Warm Home Discount - £150

Under the Warm Home Discount scheme, qualifying individuals might see their electricity bills reduced by £150 this winter through a one-time discount. Electricity suppliers will apply this discount directly between early October 2023 and March 31, 2025, to those who are eligible.

Cold Weather Payment - £25

In addition, numerous households could be eligible for a free £25 bonus from the DWP's Cold Weather Payment scheme during winter. This benefit is issued when average temperatures drop to or forecast to stay at 0°C or below for seven consecutive days.

The DWP disburses the payment following each cold stint, ensuring households receive the funds within 14 working days. For each week of severe cold between November 1, 2024, and March 31, 2025, eligible families will receive £25.

Stamp Duty

Changes to Stamp Duty mean that, from October 31, second-home purchasers will incur an increased stamp duty land tax surcharge of two percentage points, taking it up to 5%. On this matter, Reeves noted: "In our manifesto, we committed to reforming stamp duty land tax to raise revenue while supporting those buying their first home.

"We are increasing the stamp-duty land tax surcharge for second-homes known as the 'Higher Rate for Additional Dwellings' by 2 percentage points, to 5%, which will come into effect from November 1.

"This will support over 130,000 additional transactions from people buying their first home, or moving home over, the next five years."

The Department for Work and Pensions (DWP) has confirmed that the following benefits will be paid on their usual dates in November:

• Universal Credit

• Pension Credit

• Disability Living Allowance

• Personal Independence Payment

• Attendance Allowance

• Carer's Allowance

• Employment Support Allowance

• Income Support

• Jobseeker's Allowance

• Maternity Allowance

• Child Benefit

• Tax Credits

These payments are typically made directly into your bank, building society or credit union account. If your payment date falls on a weekend or a bank holiday, you'll usually receive your payment on the preceding working day. State Pension payments will also follow this schedule.

State Pension payments

Your State Pension is typically deposited into your bank account every four weeks, with the payment day determined by the last two digits of your National Insurance number. Here's how the National Insurance numbers align with payment days:

00 to 19 - paid on Monday

20 to 39 - paid on Tuesday

40 to 59 - paid on Wednesday

60 to 79 - paid on Thursday

80 to 99 - paid on Friday.