Starting April 2025, millions of households in the UK will see a welcome boost in their government benefits. From Universal Credit to State Pensions, the Department for Work and Pensions (DWP) is updating rates to keep up with inflation and provide more support where it’s needed most.
This update is based on the Consumer Prices Index (CPI) inflation rate from September 2024, which came in at 1.7%. While most benefits will rise by this percentage, State Pensions will go up by a larger 4.1% due to the triple lock policy.
Let’s break down what’s changing, how it will affect you, and what steps you can take next.
Table of Content
Reasons
Each year, the government adjusts benefits to match inflation. This ensures payments don’t lose value as the cost of living rises. Here’s why your benefits are going up in April 2025:
- CPI inflation in September 2024 was 1.7%
- Wage growth reached 4.1%
- Under the triple lock, pensions rise by the highest of CPI, wage growth, or 2.5%
Since wage growth was higher than inflation, pensioners are getting a 4.1% boost.
Factors
A few major elements shape these benefit increases:
- Inflation: Higher prices mean higher benefit needs.
- Government Spending: Budget decisions affect how much support is available.
- Public Pressure: Campaigners push for fair increases to support vulnerable groups.
These changes aim to help more than 19 million people, including low-income workers, disabled individuals, carers, and pensioners.
Universal Credit
Universal Credit is getting a moderate uplift for all categories. Here are the new monthly rates:
Basic Universal Credit (Monthly)
| Category | Previous (£) | New (£) | Increase (£) |
|---|---|---|---|
| Single, under 25 | 311.68 | 316.98 | 5.30 |
| Single, 25 and over | 393.45 | 400.14 | 6.69 |
| Couple, both under 25 | 489.23 | 497.55 | 8.32 |
| Couple, one or both 25+ | 617.60 | 628.10 | 10.50 |
Additional Elements
| Category | Previous (£) | New (£) | Increase (£) |
|---|---|---|---|
| First child (before Apr 6, 2017) | 333.33 | 339.00 | 5.67 |
| First/subsequent child (after) | 287.92 | 292.81 | 4.89 |
| Disabled child (lower rate) | 156.11 | 158.76 | 2.65 |
| Disabled child (higher rate) | 487.58 | 495.87 | 8.29 |
| Carer element | 198.31 | 201.68 | 3.37 |
Work Allowance Changes
| Type | Previous (£) | New (£) |
|---|---|---|
| Higher (no housing costs) | 673.00 | 684.00 |
| Lower (with housing costs) | 404.00 | 411.00 |
Pensions
The triple lock gives pensioners a better boost than other benefits.
| Pension Type | Previous (£/week) | New (£/week) | Increase (£) |
|---|---|---|---|
| Full New State | 221.20 | 230.25 | 9.05 |
| Full Basic State | 169.50 | 176.45 | 6.95 |
| Pension Credit Single | 218.15 | 227.10 | 8.95 |
| Pension Credit Couple | 332.95 | 346.60 | 13.65 |
Disability
Attendance Allowance and disability benefits are also increasing:
Attendance Allowance
| Rate | Previous (£) | New (£) |
|---|---|---|
| Lower rate | 72.65 | 73.90 |
| Higher rate | 108.55 | 110.40 |
Personal Independence Payment (PIP) & DLA
| Component | Previous (£) | New (£) |
|---|---|---|
| PIP Daily (Higher) | 108.55 | 110.40 |
| PIP Daily (Lower) | 72.65 | 73.90 |
| PIP Mobility (Higher) | 75.75 | 77.05 |
| PIP Mobility (Lower) | 28.70 | 29.20 |
Carers
Carer’s Allowance is rising slightly:
| Previous (£) | New (£) |
|---|---|
| 81.90 | 83.30 |
Child Benefit
Even though the increase is small, every bit helps:
| Child Type | Previous (£/week) | New (£/week) | Increase (£) |
|---|---|---|---|
| First child | 25.60 | 26.05 | 0.45 |
| Additional children | 16.95 | 17.25 | 0.30 |
Impact
While every group will see a bump in income, the effects will vary:
- Pensioners gain the most due to the 4.1% pension increase.
- Low-income families benefit modestly, though inflation may outpace gains.
- Disabled people and carers get slightly better support, but many may still struggle with rising costs.
Actions
To get the most out of these increases:
- Check your updated benefit amounts starting April 2025
- Review and adjust your household budget
- Seek free financial guidance if needed
No application is required—the DWP will automatically apply these new rates. Staying informed and planning smartly can help you stretch your benefits further in 2025.
FAQs
When do DWP benefit increases start?
All new rates take effect from April 2025.
How much will the State Pension increase?
By 4.1% due to the triple lock policy.
Will I need to reapply for benefits?
No, changes apply automatically.
Why is Universal Credit increasing?
To keep up with the 1.7% inflation rate.
What is the triple lock?
It ensures pension rises match inflation, wages, or 2.5%.
