MoneySavingExpert.com (MSE), the consumer website founded by Martin Lewis, has issued an urgent warning to millions of households across the UK about a potential financial pitfall this month.
The December Pay Date Shift
The financial advice team is alerting people to what it calls the 'December pay trap'. This occurs because many employees and those receiving Department for Work and Pensions (DWP) benefits will get their money earlier than usual this month.
While the early cash injection is welcome for covering Christmas expenses, it creates a significantly longer gap until the next payment date in January. This can leave many struggling to make ends meet by the middle of next month.
Official Payment Date Changes
The DWP has confirmed specific changes to its payment schedule due to the bank holidays. Any payments due on Christmas Day (25th December) or Boxing Day (26th December) will be paid on Christmas Eve (24th December).
Similarly, payments scheduled for New Year's Day (1st January) will be made early on Tuesday 31st December. This pattern is mirrored by many employers, who will also process payroll early ahead of the festive break.
It is important to note that Child Benefit payments will not be affected this year. As Christmas Day falls on a Thursday and Boxing Day on a Friday, and HMRC only issues this benefit on Mondays and Tuesdays, the payment dates remain unchanged.
How to Avoid the January Cash Crunch
In a post on X (formerly Twitter), MSE urged the public to take immediate action. The core message is to plan ahead and budget accordingly to avoid being left short of money in the New Year.
The team advises treating the early December payment as needing to last for a longer period. Creating a realistic budget that accounts for essential bills and reduced income in late January is crucial. Failing to do so could see households 'running out of money before then' and 'limping to the end of the month'.
By highlighting this annual issue, MSE aims to prevent millions from falling into a predictable financial trap, ensuring they can start 2026 on a more secure footing.
