The Department for Work and Pensions (DWP) has issued a warning that five types of payments will not see an increase this year. The benefits that will not be subject to the April uplift, which is typically aligned with inflation rates, include the benefit cap, capital limits, Local Housing Allowance, bereavement support payments, and the High Income Child Benefit charge.
Despite the freeze on these payments, other benefits are set to rise by 1.7% from April 2025. This increment is based on the rate of inflation recorded in September, which stood at 1.7% – marking the lowest rate in over three years.
It will mean an increase of “just a few pounds”each month for most claimants, charities have said.
Hopkinson, at Turn2us, said: “We need decisive action on the deepening levels of poverty and financial insecurity gripping communities across the UK. Long-term strategies for reform must not overshadow the immediate steps that we know can lift millions out of hardship.”
Hopkinson further urged the government to “urgently” enhance universal credit so it can adequately cover essential living costs. The Benefit Cap sets a ceiling on the total amount of benefit one can receive, reports Birmingham Live.
In Greater London, the cap for couples (with or without children) or single parents with a child of qualifying age is £25,323 annually. For single adults without children, the cap is £16,967.
Outside of London, these figures drop to £22,020 for couples or single parents and £14,753 for single adults without children. When determining eligibility for Universal Credit, the DWP is required to consider the claimant’s capital, although ‘capital’ remains undefined within the universal credit regulations.
The lower limit remains at £6,000, meaning that any savings you have below that will be disregarded for benefits calculations. The upper limit is usually £16,000 and will not be changing, meaning that if you have any savings over that, you won’t receive any benefits at all.
Bereavement support payments are one off payments of £3,500 and 18 monthly payments of £350 – the “higher rate” and applies to those who had a child and claimed child benefit, or were pregnant. The lower rate for those without children is a one-off payment of £2,500 and 18 monthly payments of £100.
The Child Benefit charge, meanwhile, will stay at £60k – and LHA rates last year increased to cover the cheapest 30% of local market rents in the 12 months before September 2023after being frozen since 2020.
Liz Kendall, Secretary of State for Work and Pensions, said: “Local housing allowance rates for 2025/26 will be maintained at the 2024/25 levels, following their increase in April 2024.”