Benefit Changes Timetable 2027

Please note that information about some of these changes may be limited at present and also subject to further change.

January 2027

Households in England in council tax bands A-D will receive a £100 Household Energy Payment to help with bills. Payments are expected to be paid directly into bank accounts. Money has been made available to the devolved governments in Scotland, Wales and Northern Ireland to match this £100 support.

April 2027

Social security benefits across the UK will increase.

The New and Basic State Pension will increase by 3.9%.

The National Living Wage (NLM) will rise by 3.9%, from £12.71 to £13.21 per hour.

The National Minimum Wage (NMW) for 18 to 20-year-olds will increase from £10.85 to £11.27 per hour. The NMW for 16 to 17-year-olds and apprentices will rise from £8 to £8.31 per hour and the accommodation offset will rise to £11.53 per day.

The VAT cut on electricity bills in Britain has been extended until July 2027. This means around £50 off the Energy Price Cap in April 2027. Households in Northern Ireland will receive similar support.

From April 2027, the Government will introduce a new Pension Tax Allowance to reduce the income tax paid by some people over State Pension age. It will reduce the amount of income tax eligible pensioners have to pay per year from 2027/28.

The amount people receive will depend on their total income. You will not need to apply for it, as HMRC will calculate it automatically.

September 2027 

The deadline to opt out of the Winter Fuel Payment 2027/28 scheme is late September 2027.

October 2027

The Warm Home Discount Scheme opens for applications in England, Scotland and Wales.

November 2027

Across the UK, eligible pensioners will begin to receive their Winter Fuel Payment or Pension Age Winter Heating Payment.

In England, Wales and Northern Ireland, the Cold Weather Payment 2027/28 scheme opens.

In Scotland, the Winter Heating Payment and Child Winter Heating Payment will be paid to eligible households.

December 2027 

The Government has committed to removing the standing charges on gas bills by the end of 2027. This is a fixed fee added on top of all household gas bills, no matter how much gas you use. The average household pays around £108 per year in standing charges.

Beyond 2027

From April 2029, parental pay eligibility will be extended to include self-employed fathers, partners and adopters. This will provide eligible parents in Britain with two weeks of support, up to £194 a week.

The Government confirmed that it will remove the Carer’s Allowance 'cliff edge'. This is when a carer would lose their benefit entirely, if their weekly earnings went over the threshold slightly.

From 2030, a taper will be added to the earnings threshold. This means when a carer's earnings go over the threshold, their Carer's Allowance payment will only be reduced by £1 for each £1 above the threshold.