Nine key DWP payment dates and money changes to be aware of in May

A full list of DWP payment dates and money changes in May reveals some major changes that could affect your personal finances.

NHS prescription costs will rise next while Ofgem will announce a new price cap. Some people will also see their benefits from the Department for Work and Pensions (DWP) paid early due to the double bank holiday.

There will also be important announces on the Bank of England interest rate decision while Subway customers and Spotify users will also face changes. UK inflation slowed slightly less than expected last month, leading to City economists and investors trimming their forecasts for interest rate cuts this year.

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Official figures showed that inflation dipped in March to its lowest level since September 2021, driven by slower increases for food prices. The Office for National Statistics (ONS) said Consumer Prices Index inflation stood at 3.2% in March, down from 3.4% in February.

It showed a slowdown in the rising cost of living, but was still above the 3.1% reading expected by a consensus of experts. It comes as the founder of a charity which distributes second-hand footwear to families in need has said parents are having to choose between buying their children shoes or paying utility bills amid the cost-of-living crisis.

Here's a breakdown of all the important money changes taking place next month, as reported by the M.E.N.

NHS prescription price rise - May 1

From May 1, the cost of a single NHS prescription will be almost £10 due to an increase of 25p this year to £9.90. This is an increase of around 2.5 per cent.

People worried about the cost of their repeat prescriptions can save money by getting a prepayment certificate (PPC), which charges a fixed amount for a set period of prescriptions. However, the cost of PPCs is also going up. The cost of a one-year PCC will rise to £114.50 from £111.60, a rise of almost £3.

Bank Holiday benefit payment date changes - May 6 and May 27

There are two Bank Holiday Mondays in May, which means some DWP benefit claimants may see their cash land in their account earlier than usual. Bank holidays will fall on May 6 and May 27, directly impacting any payments set to fall on those dates.

Payments from the Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC) due on May 6 or May 27 will be paid on the first working day beforehand - so on a Friday. This includes Universal Credit, Pension Credit, PIP, and other similar benefits.

If your benefit was due to be made on May 6, it will instead be paid on May 3. Money due in your account on Monday, May 27, will be paid on Friday, May 24.

If you are on the following benefits you may get your payment early in May:

• Attendance Allowance

• Carer’s Allowance

• Employment Support Allowance (ESA)

• Jobseeker’s Allowance (JSA)

• Pension Credit

• Personal Independence Payment (PIP)

• State pension

• Universal Credit

• Working Tax Credit

• Child Tax Credit

• Child Benefit

• Guardian’s Allowance

Bank of England interest rate decision - May 9

The Bank of England's Monetary Policy Committee (MPC) will meet on May 9 for its latest review of interest rates. Previously, the bank has decided to freeze interest rates at 5.25 per cent.

While it is not yet clear what decision the bank will make next month, most economists have predicted another freeze ahead of rates coming down later in the year. The most recent inflation figures revealed a 0.2 per cent drop to 3.2 per cent in March, which may suggest the MPC's strategy of keeping interest rates high is working to lead inflation closer to the government's 2 per cent target.

Ian Stewart, chief economist at Deloitte, said: “Inflation is in retreat but the Bank of England cannot yet be sure that it is beaten. Headline inflation is likely to drop below 2 per cent in the coming months, but to be confident it will stay there wage pressures need to ease. With earnings growing at close to 6 per cent, and the economy reviving, the Bank will be in no hurry to cut interest rates.”

Free childcare applications open - May 12

From May 12, eligible working parents of children from nine-months-old will be able to register for access to 15 free hours of government-funded childcare a week. While parents won't be able to take advantage of the offer until September of this year, it is still important to apply early and secure your spot.

It comes as part of the government's wider plans to reform access to childcare for working parents. In April, the scheme was rolled out to working parents of two-year-olds, who are now able to access 15 hours of government-funded childcare each week. The scheme will be extended to working parents of all children older than nine months from September this year, before the full rollout of 30 hours a week to all eligible families a year later. It is aimed at helping parents juggle their caring responsibilities with returning to work, thereby boosting economic productivity.

Education secretary Gillian Keegan said: "This government has a track record of transforming childcare, with the offer of 30 hours for 3 and 4-year-olds for eligible working parents introduced in 2017. We are now going further, giving hard working parents of under threes the certainty they deserve to balance growing their families with a successful and rewarding career, saving parents up to an average of £6,900 a year for the full 30 hours."

Parents are being urged to check their eligibility ahead of time via childcarechoices.gov.uk and reach out to their local provider ahead of time to secure a place.

Universal Credit payment increase in effect - May 14

Universal Credit payments were increased by 6.7 per cent on April 8, in line with inflation. However, due to how the benefit is assessed, claimants are unlikely to see the uplift in their monthly payments until mid-way through May, or perhaps even June.

On BBC Radio 4's Money Box, programme researcher Sandra Hardial highlighted the potential delay in receiving the increased funds. She explained: "The six million people on Universal Credit face the longest wait. The DWP has told Money Box that none of them will get the higher rate before the 14th of May and some will have to wait until the 13th of June."

Subway loyalty scheme shake up - May 15

Popular sandwich shop Subway is launching a major shake up to its loyalty scheme from May 15, which means customers have to be quick if they want to use their Subway Rewards points.

Customers have until May 14 to take advantage of the current scheme before it changes to a new app-only loyalty scheme. From May 15, any Rewards points will expire and become unredeemable.

The current app and physical Subway Rewards cards will become unusable so customers are being warned that if they don't want to miss out on their savings, they should log into the app and check their current points balance now. Members are being encouraged to download the new Subway Rewards app if they want to keep making savings after May 14.

July energy price cap announcement - May 24

Ofgem will announce the new energy price cap for the period July 1 to September 30 next month. An announcement is set to be made on May 24.

Currently, the price cap stands at £1,690 a year and it will stay at that rate until June 30 of this year, before the new one comes in. The price cap, which determines the maximum amount you pay on average for each unit of gas and electricity you use, is currently predicted to fall in the summer.

Forecasts from Cornwall Insight suggests that the price cap will likely fall by just over £100 to around £1,559 for the average household paying via direct debit. It's important to note that the price cap does not limit the maximum amount you pay for energy overall.

Bills may be higher or lower depending on how much gas and electricity you actually use.

Spotify subscription price hike

Spotify will be increasing some of its plans by as much as 13 per cent this year. This is the second price hike in the last 12 months for the UK's most popular streaming service, with the monthly cost of their family plans now reaching £19.99.

A solo Spotify subscription is set to increase to £11.99 from £10.99, while duo subscriptions are rising to £16.99 from £14.99. Family packages, which can include up to six people, are rising to £19.99 from £17.99, an increase of £24 per year.

Depending on your billing date, you will see your payment change to the higher rate in either May or June. Spotify has said it will email existing customers, giving them one-month's notice of the increase.