Millions of families across the UK are set to receive a financial boost from April 2025, following confirmation of new benefit payment rates by Chancellor Rachel Reeves.
The Department for Work and Pensions (DWP) will implement a 1.7 per cent increase for most benefits, based on September’s Consumer Price Index inflation figures.
Here is a full breakdown of the hikes to benefit payments that claimants are set to receive in April 2025. State pensions and Pension Credit benefits will see an even larger rise of 4.1 per cent, in line with the triple lock pledge.
Over 12 million state pensioners are expected to gain up to £470 extra annually, while single Pension Credit recipients will receive additional payments of up to £450 on average.
The new state pension rate will increase to £230.25 per week, up from the current £221.20.Those on the basic state pension will see their weekly payments rise to £176.45, from £169.50.
Pension Credit will also see substantial increases, with the standard minimum guarantee for single people rising to £227.10 per week.
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The DWP administers various benefits including the state pension and PIP
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Couples receiving Pension Credit will see their standard minimum guarantee increase to £346.60 weekly. Additional amounts for severe disability will rise to £82.90 per week for single people and those in couples where one person qualifies.
For couples where both qualify for the severe disability addition, the weekly rate will increase to £165.75. These changes represent significant support for older people, particularly those on lower incomes.
Personal Independence Payment (PIP) rates will see increases across both components from April 2025. The PIP daily living enhanced rate will rise to £110.40 weekly, while the standard rate increases to £73.90.
For the mobility component, the enhanced rate will increase to £77.05, with the standard rate rising to £29.20 per week. Attendance Allowance will also increase, with the higher rate reaching £110.40 and the lower rate rising to £73.90 weekly.
Universal Credit claimants will receive higher monthly payments, with single people under 25 getting £316.93. Single claimants aged 25 or over will receive £400.14 monthly. Couples claiming Universal Credit jointly will see increases to £497.39 if both are under 25, or £628.10 if one or both are 25 or over.
Child Benefit payments will increase to £26.05 per week for the eldest or only child, up from £25.60. Additional children will receive £17.25 weekly, rising from £16.95.
Carer’s Allowance will see an increase to £83.30 per week, up from the current £81.90. A significant change for carers is the weekly earnings threshold, which will rise substantially to £196.00 from £151.00.
Guardian’s Allowance will increase to £22.10 weekly from £21.75. These adjustments aim to provide additional support for families and those with caring responsibilities.
Benefit payment rates will go up in April 2025
PA
A new analysis reveals unclaimed welfare benefits and support have risen to £22.7billion, up from £19billion last year.
Over eight million people could be missing out on an average of £2,700 per year in rights-based benefits, according to research by Policy in Practice.
Claire Atchia McMaster, director of income and external affairs at Turn2us, said: “We encourage everyone to complete a regular benefits calculation to ensure you are accessing all available support.”
“You can do this on both the Turn2us and Policy in Practice websites. In 2023, 60 percent of users on the Turn2us Benefits Calculator identified new benefits they were eligible for,” she added.
