Millions of people across the UK will see an increase in their welfare payments starting April 2025. This adjustment impacts a wide range of benefits, including Universal Credit, State Pension, Child Benefit, and Disability Living Allowance (DLA). An estimated 19.7 million households, or roughly 39.5 million individuals, are set to benefit from these changes.
Inflation Link
Each year, welfare payments are adjusted in line with the Consumer Prices Index (CPI) inflation rate from the previous September. For 2025, benefits will rise by 1.7%, reflecting the CPI figure from September 2024. The State Pension will increase by 4.1%, upheld by the triple lock system, ensuring it rises by the highest of inflation, wage growth, or 2.5%.
Here’s an overview of the increases across major benefits:
Universal Credit
Universal Credit is replacing six legacy benefits, including Income Support and Housing Benefit. Over six million people claim it in the UK. The standard allowance will rise as follows:
| Claimants | Current Rate | New Rate |
|---|---|---|
| Single under 25 | £311.68 | £316.98 |
| Single 25 or over | £393.45 | £400.14 |
| Joint under 25 | £489.23 | £497.55 |
| Joint one/both 25 or over | £617.60 | £628.10 |
Universal Credit Elements
| Element | Current Rate | New Rate |
|---|---|---|
| First child (before April 6, 2017) | £333.33 | £339.00 |
| Other children | £287.92 | £292.81 |
| Disabled child (lower rate) | £156.11 | £158.76 |
| Disabled child (higher rate) | £487.58 | £495.87 |
| Limited capability (work) | £156.11 | £158.76 |
| Limited capability (work-related) | £416.19 | £423.27 |
| Carer element | £198.31 | £201.68 |
| Childcare (one child) | £1,014.63 | £1,031.88 |
| Childcare (two or more children) | £1,739.37 | £1,768.94 |
Attendance Allowance
For those needing assistance due to disability or illness:
| Rate | Current | New |
|---|---|---|
| Lower rate | £72.65 | £73.90 |
| Higher rate | £108.55 | £110.40 |
Carer’s Allowance
Carers providing at least 35 hours of care per week will see their weekly payment rise from £81.90 to £83.30.
Child Benefit
Parents or guardians will receive increased payments:
| Child | Current Rate | New Rate |
|---|---|---|
| First/eldest child | £25.60 | £26.05 |
| Additional child | £16.95 | £17.25 |
Disability Living Allowance (DLA)
| Rate | Current | New |
|---|---|---|
| Highest | £108.55 | £110.40 |
| Middle | £72.65 | £73.90 |
| Lowest | £28.70 | £29.20 |
Mobility Component
| Rate | Current | New |
|---|---|---|
| Higher | £75.75 | £77.05 |
| Lower | £28.70 | £29.20 |
Pension Credit
The standard minimum guarantee for Pension Credit will rise:
| Claimants | Current Rate | New Rate |
|---|---|---|
| Single | £218.15 | £227.10 |
| Couple | £332.95 | £346.60 |
Personal Independence Payment (PIP)
PIP supports working-age adults with disabilities or health conditions.
| Component | Rate | Current | New |
|---|---|---|---|
| Daily living (lower) | Weekly | £72.65 | £73.90 |
| Daily living (higher) | Weekly | £108.55 | £110.40 |
| Mobility (lower) | Weekly | £28.70 | £29.20 |
| Mobility (higher) | Weekly | £75.75 | £77.05 |
State Pension
For those eligible for the new State Pension, the weekly payment will increase:
| Type | Current Rate | New Rate |
|---|---|---|
| Full new State Pension | £221.20 | £230.25 |
| Full old Basic Pension | £169.50 | £176.45 |
Changes
These increases aim to provide relief amid ongoing economic challenges. Eligible recipients should review their benefit statements and budgets to ensure they know the impact of the changes.
SOURCE – LINK
FAQs
When do benefit increases take effect?
From April 2025.
How much will Universal Credit rise?
Increases vary, e.g., singles 25+ rise from £393.45 to £400.14.
What is the triple lock system?
State Pension rises by inflation, wage growth, or 2.5%, whichever is highest.
Will Child Benefit payments increase?
Yes, to £26.05 for the first child and £17.25 for others.
Are all benefits rising by the same rate?
No, rates vary, with inflation-linked benefits rising by 1.7%.
