Starting April 2025, millions of people in the UK will see an increase in benefits, including Universal Credit, Child Benefit, Personal Independence Payment (PIP), and the State Pension. The adjustments are part of the government’s annual review, with most payments rising by 1.7%, reflecting September 2024’s inflation rate. However, the State Pension follows the triple lock guarantee, leading to a 4.1% increase.
This article provides a detailed breakdown of the changes, their impact, and additional information for those receiving benefits.
£1768 Monthly Childcare Benefits in April 2025
| Benefit | Current Rate | New Rate (April 2025) |
|---|---|---|
| Universal Credit (single, over 25) | £393.45/month | £400.14/month |
| Child Benefit (first child) | £25.60/week | £26.05/week |
| State Pension (full new rate) | £221.20/week | £230.25/week |
| PIP Daily Living (higher) | £108.55/week | £110.40/week |
| Carer’s Allowance | £81.90/week | £83.30/week |
| More Info | Visit GOV.UK | Official benefit updates and tools |
Universal Credit Increase in April 2025
Universal Credit, which replaces six legacy benefits (e.g., Working Tax Credit, Income Support), is claimed by over six million people in the UK. This year’s 1.7% increase will bring higher payments for all categories.
New Universal Credit Rates
| Category | Current Rate (Per Month) | New Rate (Per Month) |
|---|---|---|
| Single (under 25) | £311.68 | £316.98 |
| Single (25 or over) | £393.45 | £400.14 |
| Couple (both under 25) | £489.23 | £497.55 |
| Couple (one or both 25 or over) | £617.60 | £628.10 |
Additional Components:
- Childcare cost element:
- One child: £1,014.63/month → £1,031.88/month
- Two or more children: £1,739.37/month → £1,768.94/month
- Disability elements and work allowances will also increase proportionally.
Child Benefit Increase
Child Benefit, a payment for parents or guardians, will also rise starting in April 2025.
- First or eldest child: From £25.60 to £26.05 per week.
- Each additional child: From £16.95 to £17.25 per week.
State Pension Increase
The State Pension benefits from the triple lock guarantee, which ensures annual increases are based on the highest of three factors: inflation, wage growth, or 2.5%. This year’s 4.1% rise is due to wage growth surpassing inflation.
New State Pension Rates
| Pension Type | Current Rate (Per Week) | New Rate (Per Week) |
|---|---|---|
| Full New State Pension | £221.20 | £230.25 |
| Full Basic State Pension | £169.50 | £176.45 |
Disability and Carer Benefits
Several benefits for those with disabilities or caring responsibilities will also increase.
Personal Independence Payment (PIP) & Disability Living Allowance (DLA)
PIP Rates:
| Component | Current Rate (Per Week) | New Rate (Per Week) |
|---|---|---|
| Daily Living (lower) | £72.65 | £73.90 |
| Daily Living (higher) | £108.55 | £110.40 |
| Mobility (lower) | £28.70 | £29.20 |
| Mobility (higher) | £75.75 | £77.05 |
DLA Rates:
- Care Component:
- Highest: £110.40 → £112.25
- Middle: £73.90 → £74.80
- Lowest: £29.20 → £29.70
- Mobility Component:
- Higher: £77.05 → £77.90
- Lower: £29.20 → £29.70
Attendance Allowance
Attendance Allowance is designed for those over the State Pension age who require personal care due to disability.
| Rate | Current Rate (Per Week) | New Rate (Per Week) |
|---|---|---|
| Lower Rate | £72.65 | £73.90 |
| Higher Rate | £108.55 | £110.40 |
Carer’s Allowance
Carer’s Allowance, for individuals providing care for at least 35 hours per week, will increase:
- Current Rate: £81.90/week
- New Rate: £83.30/week
Pension Credit Increase
Pension Credit, which provides income support to low-income pensioners, will rise by 4.1% in April 2025.
New Pension Credit Rates
| Category | Current Rate (Per Week) | New Rate (Per Week) |
|---|---|---|
| Single Claimant | £218.15 | £227.10 |
| Couple (both eligible) | £332.95 | £346.60 |
Additional Benefits for Pension Credit Claimants:
- Discounts on council tax.
- Free TV licences for those over 75.
- Potential eligibility for other financial support schemes.
FAQs
1. Why are benefits increasing in April 2025?
The government reviews benefits annually, adjusting them based on the previous September’s inflation rate. For April 2025, most benefits will increase by 1.7%.
2. Why is the State Pension increase higher than other benefits?
The State Pension follows the triple lock guarantee, ensuring an increase based on the highest of inflation, wage growth, or 2.5%. In 2025, this resulted in a 4.1% increase due to wage growth.
3. How do I know if my benefits will increase?
If you currently receive Universal Credit, Child Benefit, PIP, or other listed benefits, your payments will automatically adjust starting April 2025.
4. Will my childcare cost element in Universal Credit increase?
Yes, childcare cost elements will increase in April 2025. The maximum monthly amount for one child will rise to £1,031.88, while two or more children will increase to £1,768.94.
5. Do I need to apply for the increased payments?
No, benefit increases are automatic. You do not need to reapply to receive the updated rates.