Millions of individuals and households across the UK are set to see an increase in their benefits and state pension payments from April 2025. With inflation-linked adjustments based on the Consumer Prices Index (CPI) rate of 1.7% from September 2024, the government is implementing a series of changes to help alleviate financial pressures for claimants. Here’s a detailed look at the upcoming increases and what they mean for beneficiaries.
State Pension
The State Pension will increase by 4.1% under the triple lock guarantee, which ensures the pension rises by the highest of:
- Inflation (September’s CPI figure of 1.7%).
- Wage growth (average growth between May and July).
- 2.5%.
New State Pension
- Current weekly rate: £221.20
- New weekly rate: £230.25
Old Basic State Pension
- Current weekly rate: £169.50
- New weekly rate: £176.45
Universal Credit
Universal Credit, which has replaced six legacy benefits, will also see increases in its standard allowances, as well as various additional elements for childcare, children, disabilities, and carers.
Standard Allowance
| Category | Current Monthly Rate | New Monthly Rate |
|---|---|---|
| Single under 25 | £311.68 | £316.98 |
| Single 25 or over | £393.45 | £400.14 |
| Joint claimants under 25 | £489.23 | £497.55 |
| Joint claimants 25 or over | £617.60 | £628.10 |
Additional Elements
| Element | Current Rate | New Rate |
|---|---|---|
| First child (pre-April 6, 2017) | £333.33/month | £339.00/month |
| Other children | £287.92/month | £292.81/month |
| Disabled child (lower rate) | £156.11/month | £158.76/month |
| Disabled child (higher rate) | £487.58/month | £495.87/month |
| Carer element | £198.31/month | £201.68/month |
| Childcare (1 child) | £1,014.63/month | £1,031.88/month |
| Childcare (2+ children) | £1,739.37/month | £1,768.94/month |
Disability Benefits
| Component | Rate | New Rate |
|---|---|---|
| Daily Living (lower) | £72.65/week | £73.90/week |
| Daily Living (higher) | £108.55/week | £110.40/week |
| Mobility (lower) | £28.70/week | £29.20/week |
| Mobility (higher) | £75.75/week | £77.05/week |
Disability Living Allowance (DLA)
| Component | Rate | New Rate |
|---|---|---|
| Care (lowest) | £28.70/week | £29.20/week |
| Care (middle) | £72.65/week | £73.90/week |
| Care (highest) | £108.55/week | £110.40/week |
| Mobility (lower) | £28.70/week | £29.20/week |
| Mobility (higher) | £75.75/week | £77.05/week |
Attendance Allowance
For individuals over state pension age requiring supervision or care:
- Lower rate: £72.65/week to £73.90/week.
- Higher rate: £108.55/week to £110.40/week.
Child Benefit
This monthly payment for parents and guardians will also rise:
- First/eldest child: £25.60/week to £26.05/week.
- Additional children: £16.95/week to £17.25/week.
Carer’s Allowance
For individuals caring for someone at least 35 hours per week:
- Current rate: £81.90/week.
- New rate: £83.30/week.
Pension Credit
For pensioners whose income needs topping up:
- Single person: £218.15/week to £227.10/week.
- Couple: £332.95/week to £346.60/week.
What This Means
Around 19.7 million households, housing 39.5 million people, are expected to benefit from these changes. The increases aim to help recipients keep up with rising living costs, even as inflation remains relatively modest.
By adjusting benefits and pensions annually to reflect the CPI, the government ensures that vulnerable groups, including pensioners, disabled individuals, carers, and families, receive the support they need to manage financial pressures.
SOURCE – LINK
FAQs
What benefits are increasing in April 2025?
Universal Credit, PIP, Child Benefit, and the State Pension will rise.
How much will the State Pension increase?
The full new State Pension will rise from £221.20 to £230.25 per week.
Why are benefits rising by 1.7%?
They are linked to the CPI inflation rate from September 2024.
How much will Carer’s Allowance increase?
It will rise from £81.90 to £83.30 per week.
What is the triple lock guarantee?
A promise that pensions rise by inflation, wages, or 2.5%, whichever is higher.
