Thousands of state pensioners will receive their payments earlier than usual this week. State Pension and Pension Credit payments normally due on Monday will arrive in bank accounts on Friday instead.
The change affects individuals scheduled to receive money on Monday, August 25, which is a bank holiday. The Department for Work and Pensions confirmed the early payment arrangement to ensure recipients have access to funds before the long weekend.
Fiona Peake, Personal Finance Expert at Ocean Finance, said: "Getting your money on Friday instead of the Monday might feel like a win going into the long weekend, but it means you'll have three extra days to stretch it." She recommends treating Friday, August 22, as though it were the regular payday and organising the week accordingly.
Payment timing system
The date your pension arrives depends on your National Insurance number's final two digits. If they fall between 00 and 19, you receive payment on a Monday. Numbers ending between 20 and 39 result in Tuesday payments, whilst those between 40 and 59 receive funds on Wednesday.
National Insurance numbers ending between 60 and 79 receive Thursday payments, and those between 80 to 99 get Friday payments. Payments may arrive earlier when your standard payment day coincides with a bank holiday.
The DWP website states: "After you've claimed your State Pension you'll get a letter about your payments. The new State Pension is usually paid into your account every 4 weeks. If you want to change the account, tell the Pension Service. There are different rules if you live abroad."
Other benefits affected
Universal Credit and Personal Independence Payments are also arriving early due to the August bank holiday. Child Benefit, which typically arrives every four weeks on Monday or Tuesday, will also be disrupted by the holiday.
Child Benefit recipients would only face disruption from one of the bank holiday dates over Easter. The frequency of benefit payments varies depending on which benefit you receive.
Universal Credit arrives monthly on the same date, whilst Tax Credits are distributed by HMRC either weekly or every four weeks. Only Daily Star reports that nine million state pensioners are eligible for up to £300 Winter Fuel Payment this winter.
Sources used: "PA Media", "Leicester Mercury", "Daily Star" Note: This article has been edited with the help of Artificial Intelligence.
