Millions of people across the UK will see an increase in their benefit payments from April 2025, with over 19 million households benefiting from the change. This update follows the 1.7% inflation rate recorded in September 2024. Key benefits, including Universal Credit, Child Benefit, State Pension, and Disability Living Allowance, will be adjusted to reflect the rising cost of living.
Why Are Benefits Increasing?
Every year, the Department for Work and Pensions (DWP) adjusts welfare payments based on the previous year’s Consumer Prices Index (CPI) rate of inflation in September. The September 2024 CPI was 1.7%, which means most inflation-linked benefits and tax credits will increase by this rate.
However, the State Pension will see a higher increase of 4.1% due to the triple lock guarantee. The triple lock ensures pensions rise by the highest of the following:
- September’s inflation rate
- Average wage growth between May and July
- 2.5%
Benefits and Payments Set to Increase
1. Universal Credit
Universal Credit replaces several legacy benefits, including Working Tax Credit, Income Support, and others. Here’s how the standard allowance will change:
| Category | Current Rate | New Rate (April 2025) |
|---|---|---|
| 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+) | £617.60 | £628.10 |
Additional elements for dependent children and disabled individuals will also rise:
| Element | Current Rate | New Rate |
|---|---|---|
| First child (before April 2017) | £333.33 | £339 |
| First child (after April 2017) or subsequent child | £287.92 | £292.81 |
| Disabled child (lower rate) | £156.11 | £158.76 |
| Disabled child (higher rate) | £487.58 | £495.87 |
2. State Pension
The State Pension will increase by 4.1% under the triple lock mechanism:
| Type | Current Rate | New Rate |
|---|---|---|
| Full new State Pension | £221.20 | £230.25 |
| Full old basic State Pension | £169.50 | £176.45 |
3. Child Benefit
| Category | Current Rate | New Rate |
|---|---|---|
| First/eldest child | £25.60 | £26.05 |
| Additional children | £16.95 | £17.25 |
4. Disability Living Allowance (DLA)
Care Component:
| Category | Current Rate | New Rate |
|---|---|---|
| Highest rate | £108.55 | £110.40 |
| Middle rate | £72.65 | £73.90 |
| Lowest rate | £28.70 | £29.20 |
Mobility Component:
| Category | Current Rate | New Rate |
|---|---|---|
| Higher rate | £75.75 | £77.05 |
| Lower rate | £28.70 | £29.20 |
5. Personal Independence Payment (PIP)
| Category | Current Rate | New Rate |
|---|---|---|
| Daily living (lower rate) | £72.65 | £73.90 |
| Daily living (higher rate) | £108.55 | £110.40 |
| Mobility (lower rate) | £28.70 | £29.20 |
| Mobility (higher rate) | £75.75 | £77.05 |
6. Pension Credit
This credit tops up income for pensioners and offers access to additional benefits like council tax discounts and free TV licences for over-75s:
| Category | Current Rate | New Rate |
|---|---|---|
| Single | £218.15 | £227.10 |
| Couple | £332.95 | £346.60 |
7. Carer’s Allowance
Carer’s Allowance is provided to those who care for someone for at least 35 hours per week.
| Current Rate | New Rate |
|---|---|
| £81.90 | £83.30 |
8. Housing Benefit
| Category | Current Rate | New Rate |
|---|---|---|
| Maximum for one child | £1,014.63 | £1,031.88 |
| Maximum for two or more children | £1,739.37 | £1,768.94 |
How to Prepare for the Benefit Changes
Recipients of these benefits don’t need to take any action—the increases will be applied automatically starting in April 2025. However, it’s important to stay informed about how the changes will impact your payments and adjust your budget accordingly
The April 2025 benefits increase is designed to help millions of households keep up with the rising cost of living. With changes affecting Universal Credit, State Pension, Child Benefit, and other key payments, many families and individuals can expect some financial relief in the coming months.
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FAQ’s
When will the benefit increases take effect?
The new benefit rates will take effect starting in April 2025. The increases will be automatically applied to eligible recipients.
How much will Universal Credit increase in April 2025?
The standard allowance for Universal Credit will increase. For example, single claimants over 25 will see their allowance rise from £393.45 to £400.14 per month.
Why is the State Pension increasing by 4.1%?
The State Pension is increasing by 4.1% due to the triple lock, which ensures it rises by the highest of inflation, wage growth, or 2.5%.
Do I need to apply for the benefit increases?
No, you do not need to apply. The increases will be automatically applied by the DWP to your payments from April 2025.
What benefits are included in the April 2025 increase?
Benefits affected include Universal Credit, State Pension, Child Benefit, Disability Living Allowance, Personal Independence Payment, and more.