Millions of people across the UK are set to receive an increase in their benefits and pensions in April 2025. This change, which affects key welfare payments such as Universal Credit, Child Benefit, PIP (Personal Independence Payment), and the State Pension, aims to support individuals and families with the rising cost of living. The adjustments are tied to inflation rates, ensuring recipients’ payments reflect current economic conditions. Let’s explore the upcoming changes in detail.
Why Benefits and Pensions Are Increasing
Each year, welfare payments typically increase based on inflation rates from the previous September. In September 2024, the Consumer Prices Index (CPI) inflation rate was recorded at 1.7%. As a result, benefits and tax credits linked to inflation will rise by this percentage.
For state pensioners, the “triple lock” system will ensure a higher increase of 4.1%. The triple lock guarantees that pensions increase each April by the highest of the following:
- The previous September’s inflation rate
- Average wage growth between May and July
- 2.5%
In April 2025, pensioners will enjoy a larger increase due to this system, while other benefits will rise by 1.7%.
Breakdown of Benefits and Payments
Here’s a detailed look at the key payments being adjusted in April 2025:
Universal Credit
Universal Credit, which is replacing older legacy benefits, supports over six million claimants. The standard allowance (basic monthly amount) will increase as follows:
- Single under 25: £311.68 → £316.98
- Single 25 or over: £393.45 → £400.14
- Joint claimants (both under 25): £489.23 → £497.55
- Joint claimants (one or both 25 or over): £617.60 → £628.10
Other elements such as the child element, carer element, and limited capability for work payments will also see small increases.
Attendance Allowance
Attendance Allowance, available to those over the state pension age needing care due to illness or disability, will rise:
- Lower rate: £72.65 → £73.90 per week
- Higher rate: £108.55 → £110.40 per week
Child Benefit
Parents or guardians will see a small rise in their child benefit payments:
- First or eldest child: £25.60 → £26.05 per week
- Additional children: £16.95 → £17.25 per week
Carer’s Allowance
If you provide care for at least 35 hours a week, Carer’s Allowance will increase:
- £81.90 → £83.30 per week
Disability Living Allowance (DLA)
For children under 16 with disabilities, the DLA care and mobility components will rise:
Care Component
- Highest rate: £108.55 → £110.40 per week
- Middle rate: £72.65 → £73.90 per week
- Lowest rate: £28.70 → £29.20 per week
Mobility Component
- Higher rate: £75.75 → £77.05 per week
- Lower rate: £28.70 → £29.20 per week
Pension Credit
This payment tops up incomes for people above state pension age. The new standard minimum guarantee will be:
- Single person: £218.15 → £227.10 per week
- Couples: £332.95 → £346.60 per week
Personal Independence Payment (PIP)
PIP, for working-age individuals with a disability or health condition, has two parts: daily living and mobility. The rates will increase as follows:
Daily Living
- Lower rate: £72.65 → £73.90 per week
- Higher rate: £108.55 → £110.40 per week
Mobility
- Lower rate: £28.70 → £29.20 per week
- Higher rate: £75.75 → £77.05 per week
State Pension
Pensioners will benefit from the triple lock system, with the new rates as follows:
- Full new state pension: £221.20 → £230.25 per week
- Full old basic state pension: £169.50 → £176.45 per week
These changes, set to take effect in April 2025, provide crucial financial support for millions of individuals and families in the UK. The increases aim to offset the impact of inflation and ensure people receiving state support can better manage their daily expenses. Whether you’re a pensioner, a carer, or a parent, this adjustment brings a welcome boost to your household income.
If you’re unsure about how these changes affect you, contact your local DWP office or use the government’s online benefit calculators for clarity. By staying informed, you can make the most of these updates and plan your finances effectively.
