With 2025 underway, millions of households in the UK relying on benefits are set to see increases starting this April. Approximately 19.7 million households, representing around 39.5 million people, receive at least one DWP or HMRC benefit. This year’s updates follow the tradition of adjusting benefits annually based on inflation, ensuring they align with the cost of living.
In September 2024, the consumer price index (CPI) confirmed inflation at 1.7%, which will determine the rate of most benefit increases. However, the state pension will see a higher 4.1% rise due to the triple lock promise. Below is a detailed breakdown of the benefits set to rise and their updated rates.
Universal Credit
Universal Credit (UC) replaces six legacy benefits, including Working Tax Credit, Child Tax Credit, and Housing Benefit. Over six million UK residents claim UC, which will see the following increases:
| Category | Current Rate | New 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 2017) | £333.33 | £339.00 |
| First/second child (post-April 2017) | £287.92 | £292.81 |
| Disabled child (lower rate) | £156.11 | £158.76 |
| Disabled child (higher rate) | £487.58 | £495.87 |
| Limited capability for work | £156.11 | £158.76 |
| Limited capability for work-related activity | £416.19 | £423.27 |
| Carer element | £198.31 | £201.68 |
| Childcare (1 child) | £1,014.63 | £1,031.88 |
| Childcare (2+ children) | £1,739.37 | £1,768.94 |
Child Benefit
| Child | Current Rate | New Rate |
|---|---|---|
| First/eldest child | £25.60/week | £26.05/week |
| Additional child | £16.95/week | £17.25/week |
Attendance Allowance
This benefit supports those over the state pension age who require personal care.
| Rate | Current Rate | New Rate |
|---|---|---|
| Lower | £72.65/week | £73.90/week |
| Higher | £108.55/week | £110.40/week |
Carer’s Allowance
For those caring for someone for at least 35 hours weekly:
| Current Rate | New Rate |
|---|---|
| £81.90/week | £83.30/week |
Disability Living Allowance (DLA)
DLA is available only for under-16s in England and Wales, while Scotland offers Child Disability Payment.
| Component | Rate Type | Current Rate | New Rate |
|---|---|---|---|
| Care | Highest | £108.55/week | £110.40/week |
| Care | Middle | £72.65/week | £73.90/week |
| Care | Lowest | £28.70/week | £29.20/week |
| Mobility | Higher | £75.75/week | £77.05/week |
| Mobility | Lower | £28.70/week | £29.20/week |
Personal Independence Payment (PIP)
PIP supports working-age adults with disabilities or health conditions.
| Component | Rate Type | Current 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 |
Pension Credit
| Category | Current Rate | New Rate |
|---|---|---|
| Single | £218.15/week | £227.10/week |
| Couple | £332.95/week | £346.60/week |
Additional elements may apply based on circumstances such as disability or caregiving.
State Pension
The triple lock ensures the state pension rises by the highest of inflation, wage growth, or 2.5%.
| Pension Type | Current Rate | New Rate |
|---|---|---|
| Full new state pension | £221.20/week | £230.25/week |
| Full old basic state pension | £169.50/week | £176.45/week |
Increases
These updates provide a modest boost to help households cope with inflation and rising costs. While the increases may not fully offset the cost of living crisis, they offer some relief to millions across the UK.
SOURCE – LINK
FAQs
When will benefits increase in 2025?
Benefits will rise in April 2025, based on September 2024 inflation rates.
What is the new Universal Credit rate for singles over 25?
The rate will increase to £400.14 per month.
How much is the state pension increasing?
The state pension will rise by 4.1%, up to £230.25 weekly.
Are child benefits increasing in 2025?
Yes, the rate for the first child increases to £26.05 per week.
Who qualifies for Attendance Allowance?
Those over state pension age needing personal care qualify for this benefit.
