From April 2025, millions of people across the UK will see an increase in their benefits, tax credits, and state pension. Over 19 million households—covering 39.5 million individuals—will receive at least one Department for Work and Pensions (DWP) or HMRC benefit that will be uprated in line with inflation.
Most benefits increase annually based on the Consumer Prices Index (CPI) inflation rate from the previous September. For September 2024, inflation was 1.7%, meaning that inflation-linked benefits and tax credits will rise by this percentage.
The State Pension, however, is protected by the triple lock, meaning it will increase by 4.1%—whichever is highest among inflation, wage growth, or 2.5%.
Here’s a full breakdown of the changes happening in April 2025.
Universal
Universal Credit is replacing six older benefits, including Working Tax Credit, Child Tax Credit, Income Support, Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance, and Housing Benefit.
Standard Allowance (Basic Monthly Amount)
| Category | Current Amount | New Amount (April 2025) |
|---|---|---|
| Single under 25 | £311.68 | £316.98 |
| Single 25 or over | £393.45 | £400.14 |
| Joint claimants under 25 | £489.23 | £497.55 |
| Joint claimants 25 or over | £617.60 | £628.10 |
Child Element
| Child Category | Current Amount | New Amount |
|---|---|---|
| First child (born before April 6, 2017) | £333.33 | £339.00 |
| First child (born after April 6, 2017) or subsequent children | £287.92 | £292.81 |
| Disabled child (lower rate) | £156.11 | £158.76 |
| Disabled child (higher rate) | £487.58 | £495.87 |
Limited Capability for Work
| Category | Current Amount | New Amount |
|---|---|---|
| Limited capability for work | £156.11 | £158.76 |
| Limited capability for work-related activity | £416.19 | £423.27 |
Carer Element
- £198.31 → £201.68 per month
Work Allowance
| Allowance Type | Current Amount | New Amount |
|---|---|---|
| Higher work allowance (no housing amount) | £673 | £684 |
| Lower work allowance (with housing amount) | £404 | £411 |
Childcare Cost Element
| Childcare Costs | Current Amount | New Amount |
|---|---|---|
| Maximum for one child | £1,014.63 | £1,031.88 |
| Maximum for two or more children | £1,739.37 | £1,768.94 |
Pension
| Pension Type | Current Amount | New Amount |
|---|---|---|
| Full new State Pension | £221.20 | £230.25 |
| Full old basic State Pension | £169.50 | £176.45 |
Attendance
| Attendance Allowance | Current Amount | New Amount |
|---|---|---|
| Lower rate | £72.65 | £73.90 |
| Higher rate | £108.55 | £110.40 |
Carer
| Carer’s Allowance | Current Amount | New Amount |
|---|---|---|
| Weekly payment | £81.90 | £83.30 |
Child
| Child Benefit | Current Amount | New Amount |
|---|---|---|
| First or eldest child | £25.60 | £26.05 |
| Any additional child | £16.95 | £17.25 |
Disability
The Disability Living Allowance (DLA) is being replaced by Personal Independence Payment (PIP) for adults but remains available for children.
DLA Care Component
| Rate | Current Amount | New Amount |
|---|---|---|
| Highest | £108.55 | £110.40 |
| Middle | £72.65 | £73.90 |
| Lowest | £28.70 | £29.20 |
DLA Mobility Component
| Rate | Current Amount | New Amount |
|---|---|---|
| Higher | £75.75 | £77.05 |
| Lower | £28.70 | £29.20 |
Personal Independence Payment (PIP)
| Rate | Current Amount | New Amount |
|---|---|---|
| Lower | £72.65 | £73.90 |
| Higher | £108.55 | £110.40 |
Mobility Component
| Rate | Current Amount | New Amount |
|---|---|---|
| Lower | £28.70 | £29.20 |
| Higher | £75.75 | £77.05 |
Pension
Pension Credit is a financial top-up for low-income pensioners.
| Category | Current Amount | New Amount |
|---|---|---|
| Single person minimum guarantee | £218.15 | £227.10 |
| Couple minimum guarantee | £332.95 | £346.60 |
Additional elements apply for carers, disabilities, and children.
Final Thoughts
The April 2025 benefits increase will provide much-needed financial relief for millions across the UK. While most benefits will rise by 1.7%, the State Pension increase of 4.1% under the triple lock ensures that pensioners receive a significant boost.
For those on Universal Credit, Child Benefit, Disability Benefits, and Carer’s Allowance, these increases will help with rising living costs.
FAQs
How much is the State Pension increasing in 2025?
The full new State Pension will rise from £221.20 to £230.25 per week.
What is the Universal Credit standard allowance increase?
For a single adult over 25, it rises from £393.45 to £400.14 per month.
How much will Child Benefit increase by?
The first child rate will rise from £25.60 to £26.05 per week.
Will Disability Living Allowance payments increase?
Yes, with the highest care rate rising from £108.55 to £110.40 per week.
How does the pension credit increase affect pensioners?
The single person’s minimum guarantee rises from £218.15 to £227.10 per week.
