The Department for Work and Pensions (DWP) is set to increase benefit payments from April 2025, offering financial relief to millions of pensioners and benefit recipients.
However, due to arrears-based payments, many won’t feel the impact immediately. Additionally, major changes to the Winter Fuel Payment mean that some pensioners will lose eligibility.
This guide explains when you’ll receive the increased payments, who qualifies, and how to manage the delay effectively.
Increases
Each April, the DWP adjusts benefit rates based on inflation and earnings growth. In 2025, State Pension, Universal Credit, and disability benefits will increase, but recipients should prepare for a delay before they see the extra money in their bank accounts.
Payment Changes
| Benefit | Increase | New Amount (2025/26) |
|---|---|---|
| New State Pension | £470 annually (4.1%) | £11,973 per year |
| Basic State Pension | £364 annually (4.1%) | £8,953 per year |
| Universal Credit | 1.7% | £364.80 per month (single over 25) |
| Disability Benefits (PIP, DLA, Attendance Allowance) | 1.7% | Up to £187.45 per week (PIP) |
| Winter Fuel Payment | Now means-tested | Excludes 10 million pensioners |
| Payment Timing | Paid in arrears | Most won’t see increases until May 2025 |
Increased Payments
Most benefits are paid in arrears, meaning the increase won’t be felt immediately. For example:
- State Pension: Paid four weeks in arrears – most pensioners won’t notice the increase until May 2025.
- Universal Credit & Disability Benefits: Also paid in arrears – first increased payments will arrive in May.
- Winter Fuel Payment: Due to changes in eligibility, some pensioners may need to reapply before receiving payments.
Breakdown
The State Pension will rise based on the triple lock system, which ensures increases match the highest of inflation, earnings growth, or 2.5%.
- New Full State Pension: Increasing by £470 annually, reaching £11,973 per year.
- Basic State Pension: Rising by £364 annually, bringing it to £8,953 per year.
When will pensioners feel the increase?
Since pensions are paid in arrears, those on weekly or fortnightly payments may see it sooner, but most will notice the rise in May 2025.
Universal Credit
Universal Credit and other benefits will rise by 1.7%, aligning with inflation.
- A single person over 25 will see their standard Universal Credit allowance increase from £358.70 to £364.80 per month.
- Other benefits, such as Jobseeker’s Allowance (JSA), Income Support, and Employment and Support Allowance (ESA), will also see 1.7% increases.
Disability Benefits
People receiving disability benefits will see a 1.7% increase, including:
- Personal Independence Payment (PIP) & Disability Living Allowance (DLA): Up to £187.45 per week.
- Attendance Allowance: Higher rate rising from £101.75 to £103.50 per week.
When will beneficiaries see the increase?
These benefits are paid every four weeks, so most recipients won’t see the higher rate until May 2025.
Winter Fuel Payment
The Winter Fuel Payment is now means-tested, meaning only certain pensioners will qualify.
- Who is eligible? Pensioners receiving Pension Credit or other means-tested benefits.
- Who loses out? Around 10 million pensioners who previously received the payment but don’t qualify under the new system.
- When will payments be made? Due to Pension Credit application backlogs, some pensioners may not receive their Winter Fuel Payment in time for winter.
Pension Credit
Claiming Pension Credit can provide additional support, including:
- Housing Benefit – Helps with rent costs.
- Council Tax Reduction – Lowers council tax bills.
- Cold Weather Payments – £25 for each seven-day period of extreme cold.
- Free NHS dental treatment – Covers dental care costs.
How to apply? Visit GOV.UK or call 0800 99 1234.
Cost-of-Living Concerns
While these benefit increases help, they may not fully offset rising costs of:
- Energy bills – Still significantly higher than pre-2021 levels.
- Food prices – Essential groceries continue to rise.
- Rent and council tax – Increases in housing costs impact low-income households.
What can you do?
- Check for local support programs to help with food, energy, and council tax bills.
- See if you qualify for the Warm Home Discount or other DWP hardship funds.
FAQs
When will the DWP payment increases take effect?
Increases take effect in April 2025, but most payments won’t reflect the rise until May.
Why won’t I see my payment increase immediately?
Most benefits are paid in arrears, meaning you receive payments for the previous period.
Who still qualifies for the Winter Fuel Payment?
Only pensioners on Pension Credit or other means-tested benefits qualify under new rules.
How much will the State Pension increase by?
The New State Pension rises by £470 annually, reaching £11,973 per year.
What extra support can Pension Credit unlock?
Pension Credit can provide rent relief, council tax reduction, and free NHS dental care.
