Multiple DWP changes in May that could affect your benefit payments

Get ready - there are five key cost-of-living changes from the Department for Work and Pensions (DWP) that you need to be aware of in May. These alterations could potentially impact millions across the UK.

It follows significant changes in April, which saw a 6.7 per cent increase in state benefits including Universal Credit, PIP, ESA, DLA and income support. Pensioners also experienced an uplift with the state pension rising by 8.5 per cent, taking the full new state pension to £221.20 per week.

Further changes in May could significantly affect your finances. These will primarily impact those claiming certain benefits such as Universal Credit, with changes to work requirements and adjustments to payment dates due to two bank holidays.

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Here's everything you need to know about the financial changes.

Changes to bank holiday payments

The Department for Work and Pensions (DWP) has revealed changes set for May that will affect individuals on certain benefits. Due to the bank holidays falling on May 6 and May 27, those expecting to receive Universal Credit or other benefits on these dates will likely see their money arrive earlier.

If your benefits are scheduled for Monday, May 6, you can expect to receive them on Friday, May 3 instead. Similarly, if your benefits are due on Monday, May 27, they'll be paid on Friday, May 24.

These bank holiday alterations will apply to the following benefits:

• State pension

• Income support

• Disability living allowance

• Employment and support allowance

• Jobseeker’s allowance

• Child benefit

• Attendance allowance

• Personal independence payment (PIP)

• Carer’s allowance

• Universal credit

• Pension credit

• Tax credits

Interest rates decision - May 9

The Bank of England convenes several times a year to determine the base interest rate, which is instrumental in controlling inflation and can impact things like mortgage repayments for millions of households. Over the past two years, the bank has been raising the rate in an effort to combat inflation, which hit a high of 11.1% in October 2022 but dropped to 3.2% in March.

In March, the base rate was maintained at 5.25%, and it remains uncertain what the new rate will be in May. Experts had previously anticipated a rate cut in May or June, but this may not occur until August or September.

New, higher benefit payments

Although the DWP rolled out the new benefit rates from April, many will not see the increased rates reflected in their payments until next month. This is due to the way benefits are paid, either monthly or fortnightly, reports Wales Online.

Universal Credit changes - May 13

Significant changes that will impact thousands of Universal Credit claimants who are employed are due to be implemented next month. The Administrative Earnings Threshold (AET) determines the minimum wage levels for individuals to receive full benefits without needing to seek additional employment.

Previously, claimants needed to work approximately nine hours a week to receive full benefits. However, from May 13, the minimum wage levels for benefit claimants with work requirements will increase to £892 per calendar month for individuals and £1,437 per calendar month for couples.

This equates to an individual working 18 hours per week at the national living wage or couples working a combined total of 29 hours per week at the same wage rate. This change means that around 180,000 people will need to work more hours to receive full benefits, or they could face sanctions or have their payments stopped entirely. More information on this can be found here.

WASPI update

The State Pension Age (Compensation) Bill for WASPI women is set for its second reading on May 17. This bill seeks to compensate women affected by changes to the state pension age.

In March, following a six-year investigation, the Parliamentary and Health Service Ombudsman (PHSO) stated that women born in the 1950s who were impacted by short notice changes to their state pension age should receive compensation.

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