The start of a new financial year is marking a wide range of financial changes across the country, including an uprate in a wide range of benefit payments
The onset of a new financial year is ushering in a host of financial changes across the UK, including an increase in a broad range of benefit payments.
In September 2024, this was confirmed as being 1.7%, according to the consumer price index.
However, the State Pension deviates from this rule. It rises by whichever is highest out of inflation, wages based on average growth between May and July, or 2.5% – the triple lock promise.
This year, it will surge by 4.1% in line with average earnings growth. Other benefits set to rise include Universal Credit, Child Benefits, and Disability Living Allowance.
Here’s a detailed list of DWP benefits that are increasing in April 2025 and by how much.
Universal Credit
Universal credit is the benefit payment that people receive instead of the old legacy benefits. It currently replaces six legacy benefits, including Working Tax Credit, Child Tax Credit, Income Support, Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance and Housing Benefit.
Over six million people in the UK claim universal credit.
The standard allowance – the basic amount you get before any additional payments or deductions are accounted for – is set to increase 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
- Joint claimants both under 25 : £489.23 a month to £497.55 a month
- Joint claimants, one or both aged 25 or over, will see their monthly payments increase from £617.60 to £628.10
Additional payments may be received by some due to factors such as dependent children or long-term illness.
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
Attendance Alloawnce
Attendance Allowance is a benefit paid to individuals over the state pension age who require assistance or supervision with personal care due to illness or disability.
Higher rate
- £108.55 a week £110.40 a week
Lower rate
- £72.65 a week to £73.90 a week
Carer’s Allowance
Carer’s Allowance is a benefit given to individuals who provide care for someone for 35 hours or more per week. Eligibility does not depend on living with or being related to the person being cared for.
This benefit will increase from £81.90 a week to £83.30 a week.
Child Benefit
Child Benefit payments are made to parents or anyone caring for 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 phased out and replaced by Personal Independence Payment (PIP) for those with a disability. DLA applications can only be made if you’re under 16 and reside in England or Wales.
- 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
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 further: £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
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 cost 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
Pension Credit
Pension credit is a benefit that boosts the income of individuals over the state pension age. It also provides access to other benefits such as council tax reductions and free TV licences for those aged 75 and above.
Additional elements are available for carers, disabled individuals, those caring for children, or those with savings who reached state pension age before April 2016.
- Single: £218.15 a week to £227.10 a week
- Couple: £332.95 a week to £346.60 a week
Personal Independence Payment (PIP)
PIP is a benefit designed for working-age adults suffering from an illness, disability or mental health condition. It consists of a daily living rate component and a mobility rate component – eligibility for one or both depends on individual circumstances.
Daily living
- Lower rate: £72.65 a week to £73.90 a week
- Higher rate: £108.55 a week to £110.40 a week
Mobility
- Lower rate: £28.70 a week to £29.20 a week
- Higher rate: £75.75 a week to £77.05 a week
State Pension
The new state pension can be claimed by men born on or after April 6, 1951, and women born on or after April 6, 1953. Those born before these dates are only entitled to the basic state pension payments.
- 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