The Department for Work and Pensions (DWP) is set to make some changes to the way state pension payments are processed for thousands of Brits in May due to the bank holidays. This adjustment will mainly affect older pensioners who are due to receive their state pension payments during these holiday periods. The changes are scheduled to occur because May has two significant bank holidays, and the usual payment schedule is adjusted accordingly.
Why Are Payments Changing in May?
In 2025, May will have two bank holidays. The Early May bank holiday falls on Monday, May 5, and the Spring bank holiday will be observed on Monday, May 26. For those who typically receive their payments on these dates, there will be some important changes to their payment schedule. Bank holidays often cause shifts in payment schedules, as they fall on weekdays when normal operations may not be in place.
Normally, state pensions are paid on a specific date; however, due to bank holidays in May, the DWP is preparing to pay pensions early. This year, pensioners whose payments are due on the bank holidays will receive their state pension on the Friday before the holiday. For example, if your payment is due on May 5, which is a Monday, you will instead receive your payment on Friday, May 2. Similarly, pensioners due their payment on May 26 will receive it on Friday, May 23.
How to Know If Your Payment is Affected?
The key to understanding whether your payment will be affected by the bank holiday changes lies in the two-digit code associated with your state pension payment. This code is linked to your National Insurance number, specifically the last two digits of your National Insurance number. The payment day you will receive depends on this two-digit code, which categorises pensioners into specific groups based on the final digits of their National Insurance number.
- For pensioners with numbers ranging from 00 to 19: Your state pension is usually paid on a Monday.
- For numbers between 20 and 39: Your state pension will typically be paid on a Tuesday.
- For numbers between 40 and 59: Your state pension will be paid on a Wednesday.
- For numbers between 60 and 79: Your payment will typically be made on Thursday.
- For numbers between 80 and 99: Your payment will be made on a Friday.
This pattern repeats every week. However, if you are due for a payment on a bank holiday, the DWP will adjust the payment schedule accordingly. Pensioners with two-digit codes that fall on a bank holiday Monday, for example, will receive their payments on the previous Friday, allowing them to access their funds before the holiday.
If you’re unsure about how your payments will be affected, you can contact the Department for Work and Pensions directly or check their official website for updates on payment schedules.
What Happens If You Receive Your Payment on a Different Day?
If your state pension is due to be paid on a different day, don’t worry. Your money will still be deposited into your account, but it will likely be earlier than expected due to the adjustments made for the bank holiday. If you receive your payment early on the Friday before the bank holiday, it will be credited to your account as usual.
The most important thing to note is that the payment amount will not change. The DWP ensures that the state pension amount remains consistent, regardless of any changes in payment dates. The only difference will be the day on which the payment is deposited into your account.
After the bank holiday period ends, the payments will return to the regular schedule. The payment dates for June and beyond will follow the usual routine. If your payment was affected by a bank holiday in May, expect the payment schedule to revert to normal once June arrives.
What to Do If Your Payment Is Missing?
If you do not receive your payment on the revised date, please act promptly to resolve the issue. Since the DWP offices will be closed over the bank holidays, there may be delays in processing and responding to queries. However, if your payment does not appear in your account by the scheduled date, it is crucial to contact the appropriate department as soon as possible.
The Pensions Service is responsible for handling state pension queries. You can reach them by calling the dedicated helpline at 0800 731 0469. If you experience any issues with the payment, the customer service team will assist in resolving the matter and ensuring that your payment reaches you without further delay.
State Pension Rate Increase in April
One important note for pensioners is that the state pension rates increased starting from April 7, 2025. The new payment rates for the 2025-26 period came into effect on the first day of the next full benefit week after April 7. For instance, if your payment day falls on a Wednesday, the new pension rate will be included in that payment.
Since state pensions are paid in arrears, the previous days and weeks will be calculated using the last year’s rate, which means that any missed payments or adjustments will be reflected in your next full payment. The updated state pension rates will be included in the May payments, ensuring that pensioners receive the increased amount, starting with the next scheduled payment.
What Happens if You Live Abroad?
If you live outside the United Kingdom, the payment rules for your state pension might differ. The DWP has specific guidelines for pensioners residing abroad, and different rules apply to the processing of payments. If you are living overseas, it is essential to check with the Pensions Service to understand how the bank holiday changes will impact your payment. The same two-digit code structure applies, but the payment dates may differ for those residing outside the UK.
Conclusion
The changes to the DWP payment schedule for May 2025 are crucial for pensioners who are due to receive their payments around the bank holidays. Knowing the two-digit code linked to your National Insurance number can help you determine if your payment will be affected and when to expect it.
For pensioners whose payments fall on bank holidays, early payments will be made, and there is no need to worry about delays or changes in the amount. Once the bank holiday period is over, payments will resume according to the usual schedule.
Always remember, if there’s an issue with receiving your payment, be sure to contact the Pensions Service for assistance. With the increase in state pension rates starting this April, May will bring in the updated amounts, ensuring that pensioners can access their funds in a timely manner.