Benefits payments for people in the UK are set to increase by 1.7 per cent in April. Most payments rise each year by the previous September’s level of inflation – which was confirmed to be 1.7 per cent.
The State Pension will rise by 4.1 per cent under the triple lock promise. This guarantees that the State Pension will rise each April by the highest out of inflation using the previous September inflation figure, wages based on average growth between May and July or 2.5 per cent – whichever is highest.
It comes as Universal Credit is replacing six older legacy benefits this year. This includes Working Tax Credit, Child Tax Credit, Income Support, Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance and Housing Benefit.
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Here we have a look at the most common benefits rises coming in 2025.
Universal Credit
Universal Credit is claimed by more than six million people in the UK, Mirror reports. The standard allowance is the basic amount you get before any additional payments or deductions are accounted for.
It is likely to rise by:
-
Single under 25: £311.68 a month to £316.98 a month
-
Single 25 or over: £393.45 a month to £400.14 a month
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Joint claimants both under 25: £489.23 a month to £497.55 a month
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Joint claimants, one or both 25 or over: £617.60 a month to £628.10 a month
Some people are entitled to extra payments on top of their standard allowance. For example, you may receive more money if you have children or a long-term illness.
Child element
- First child born before April 6, 2017: £333.33 a month to £339 a month
- First child born on or after April 6, 2017 or second child and subsequent child: £287.92 a month to £292.81 a month
- Disabled child element lower rate: £156.11 a month to £158.76 a month
- Disabled child higher rate: £487.58 a month to £495.87 a month
Limited capability for work
- Limited capability for work: £156.11 a month to £158.76 a month
- Limited capability for work or work-related activity: £416.19 a month to £423.27 a month
Carer element
- £198.31 a month to £201.68 a month
Work allowance
- Higher work allowance (no housing amount): £673 a month to £684 a month
- Lower work allowance (with housing amount): £404 a month to £411 a month
Childcare costs element
- Maximum for one child: £1,014.63 a month to £1,031.88 a month
- Maximum for two or more children: £1,739.37 a month to £1,768.94 a month
Attendance Allowance
Attendance Allowance is given to those over State Pension age who need help with day-to-day personal care or supervision due to illness or disability.
Lower rate
- £72.65 a week to £73.90 a week
Higher rate
- £108.55 a week £110.40 a week
Carer’s Allowance
Carer’s Allowance is given to people who are looking after someone for at least 35 hours a week. You do not have to be related to, or live with, the person you care for to claim Carer’s Allowance.
- £81.90 a week to £83.30 a week
Child Benefit
Child Benefit is paid monthly to parents or anyone in charge of looking after a child.
- First or eldest child: £25.60 a week to £26.05 a week
- Any additional child: £16.95 a week to £17.25 a week
Disability Living Allowance
Disability Living Allowance (DLA) is being replaced by Personal Independence Payment (PIP) for disabled people. You can only apply for DLA if you are under 16 and you live in England or Wales.
People who live in Scotland can apply for Child Disability Payment. DLA care component rates will increase as follows:
- The highest rate: £108.55 a week to £110.40 a week
- The middle rate from £72.65 a week to £73.90 a week
- The lowest rate from £28.70 a week to £29.20 a week
DLA mobility component rates will increase as follows:
- The higher rate: £75.75 a week to £77.05 a week
- The lower rate: £28.70 a week to £29.20 a week
Pension Credit
Pension Credit tops up your income if you are over State Pension age. It is also known as a gateway benefit as it unlocks other perks such as council tax discounts and free TV licences for over-75s.
Standard minimum guarantee
- Single: £218.15 a week to £227.10 a week
- Couple: £ 332.95 a week to £346.60 a week
There are extra elements available if you are a carer, disabled, looking after children, or if you have savings and reached State Pension age before April 2016.
Personal Independence Payment (PIP)
Personal Independence Payment (PIP) helps working age adults who are living with an illness, disability or mental health condition. PIP is made up of two components – a daily living rate and a mobility rate – and you can be entitled to both or just one of these.
Daily living
Mobility
State Pension
You claim the New State Pension if you are a man who was born on or after April 6, 1951, or a woman on or after April 6, 1953. You claim the Basic State Pension if you are a man born before April 6, 1951, or a woman born before April 6, 1953.
- Full new state pension: £221.20 a week to £230.25 a week
- Full old basic state pension: £169.50 a week to £176.45 a week
You may not get the full amounts listed above as it all depends on your National Insurance record.