From April 2025, an increase in benefits such as Child Benefit and Universal Credit will be implemented. It’s estimated that over 19 million households across the UK, housing approximately 39.5 million individuals, are set to receive at least one benefit from the Department for Work and Pensions (DWP) or HM Revenue and Customs (HMRC) that will be uprated from April 2025.
Typically, welfare payments see an annual rise in line with the inflation rate of the previous September. The Consumer Prices Index (CPI) inflation rate for September 2024 was declared to be 1.7%, which is the rate by which inflation-linked benefits and tax credits will increase this year.
The State Pension will see a 4.1% boost under the triple lock promise. This guarantee ensures that the state pension increases each April by the highest of three factors: inflation (based on the previous September’s figure), wage growth (average increase between May and July), or 2.5% – whichever is the highest, reports the Liverpool Echo.
In addition to the State Pension, several other benefits including Universal Credit, Child Benefits, and Disability Living Allowance will also see an increase. Here’s a look at the affected benefits and what recipients can anticipate.
Universal Credit
Universal Credit, claimed by more than six million people in the UK, is replacing six older legacy benefits. These include Working Tax Credit, Child Tax Credit, Income Support, Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance, and Housing Benefit.
The standard allowance, which is the base amount before any additional payments or deductions are considered, will see an increase as follows: For single individuals under 25, it will rise from £311.68 a month to £316.98 a month. For those aged 25 or over, it will go up from £393.45 a month to £400.14 a month.
Joint claimants both under 25 will see an increase from £489.23 a month to £497.55 a month, while joint claimants, one or both aged 25 or over, will receive an increase from £617.60 a month to £628.10 a month.
Additional payments may be received by some due to factors such as having dependent children or long-term illness.
Child element
The child element for the first child born before April 6, 2017, will increase from £333.33 a month to £339 a month.
For the first child born on or after April 6, 2017, or second child and subsequent child, it will rise from £287.92 a month to £292.81 a month. .
The disabled child element at the lower rate will increase from £156.11 a month to £158.76 a month, while the higher rate will go up from £487.58 a month to £495.87 a month.
Limited capability to work
For those with limited capability for work, the allowance will rise from £156.11 a month to £158.76 a month. If you have limited capability for work or work-related activity, it will increase from £416.19 a month to £423.27 a month.
Carer element
The carer element will see an increase from £198.31 a month to £201.68 a month.
Work allowance
The work allowance will also see changes. The higher work allowance (no housing amount) will rise from £673 a month to £684 a month, while the lower work allowance (with housing amount) will increase from £404 a month to £411 a month.
Childcare cost element
The childcare cost element will also see changes. The maximum for one child will rise from £1,014.63 a month to £1,031.88 a month, and for two or more children, it will increase from £1,739.37 a month to £1,768.94 a month.
Attendance Allowance
Attendance Allowance is available for those over the state pension age who require assistance or supervision with personal care due to illness or disability.
The lower rate will increase from £72.65 a week to £73.90 a week, while the higher rate will rise from £108.55 a week to £110.40 a week.
Carer’s Allowance
This benefit is awarded to individuals who provide care for someone for 35 hours or more per week. Eligibility does not require you to live with or be related to the person you are caring for.
The allowance will increase from £81.90 a week to £83.30 a week.
Child Benefit
This monthly payment is provided to parents or anyone responsible for a child. For the first or eldest child, the benefit will increase from £25.60 a week to £26.05 a week.
For any additional children, the benefit will rise from £16.95 a week to £17.25 a week.
Disability Living Allowance
The Disability Living Allowance (DLA) is being phased out and replaced by the Personal Independence Payment (PIP) for those living with a disability. DLA applications are only open to those under 16 residing in England or Wales.
Residents of Scotland can apply for the Child Disability Payment instead.
DLA care component rates will see an increase as follows: The highest rate will go from £108.55 a week to £110.40 a week, the middle rate from £72.65 a week to £73.90 a week, and the lowest rate from £28.70 a week to £29.20 a week.
DLA mobility component rates will also see an increase: The higher rate will rise from £75.75 a week to £77.05 a week, and the lower rate from £28.70 a week to £29.20 a week.
Pension Credit
For those above the state pension age, this credit supplements your income. It also grants access to other benefits such as council tax discounts and free TV licences for those over 75.
The standard minimum guarantee will increase as follows: For single individuals, it will rise from £218.15 a week to £227.10 a week. For couples, it will go up from £332.95 a week to £346.60 a week.
Additional benefits are available if you’re a carer, disabled, caring for children, or if you have savings and reached state pension age before April 2016. .
One such benefit is the Personal Independence Payment (PIP), which is designed for working-age adults who have an illness, disability or mental health condition. PIP consists of two components – a daily living rate and a mobility rate.
You may be eligible for one or both of these rates.
Daily living
The daily living component ranges from £72.65 to £73.90 a week at the lower rate, and £108.55 to £110.40 a week at the higher rate.
Mobility
The mobility component varies from £28.70 to £29.20 a week at the lower rate, and £75.75 to £77.05 a week at the higher rate.
State Pension
State Pension is another benefit you can claim if you’re a man born on or after April 6, 1951, or a woman born on or after April 6, 1953. The basic state pension applies to men born before April 6, 1951, or women born before April 6, 1953.
The full new state pension ranges from £221.20 to £230.25 a week, while the full old basic state pension varies from £169.50 to £176.45 a week.