The Department for Work and Pensions will introduce new payment rates for the 2025/26 financial year, starting from April 7, 2025, including for State Pension and Universal Credit
Benefit recipients across the UK can expect a significant increase in their payments in just a few months. The Department for Work and Pensions (DWP) is set to roll out new payment rates for the 2025/26 financial year, starting from April 7, 2025.
Notable increases include the New and Basic State Pension, which will see a 4.1 per cent rise under the Triple Lock. Meanwhile, most working age and disability benefits will see an increase by the September Consumer Price Index (CPI) inflation rate figure of 1.7 per cent.
Before the new payment rates kick in, annual uprating letters are sent out to all claimants, informing them about the changes – it’s vital to keep this letter safe as it can often be used as proof of benefit entitlement when applying for other forms of financial support. Pension Credit, a passport benefit designed to provide additional support for low-income pensioner households, will also see a 4.1 per cent increase, taking the average annual award to over £4,000.
Over 760,000 pensioners are entitled to this gateway benefit and not claiming it, and it’s important to note that an award of just £1 per week is enough to access annual Winter Fuel Payments, according to the Daily Record. The weekly earnings threshold for those on Carer’s Allowance is set to rise from £151 per week to £196, equivalent to 16 hours at the National Minimum Wage.
Chancellor Rachel Reeves also announced that deductions from Universal Credit payments will be reduced from 25 per cent to 15 per cent.
New payment rates for 2025/26 have been estimated by the Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC), using the relevant uprating figure and the UK Government’s rounding policy. It’s crucial to remember that these figures may change.
Weekly rates are displayed unless otherwise stated, and they are listed in alphabetical order for easy reference.
New DWP and HMRC payment rates for 2025/26
Figures have been estimated for the new payment rates using the relevant uprating figure and the UK Government’s rounding policy. It’s important to note that these figures may change Weekly rates are shown unless otherwise stated and are listed in alphabetical order for ease of reference.
Attendance Allowance
- Higher rate: £110.40 (from £108.55)
- Lower rate: £73.90 (from £72.65)
Carer’s Allowance
- April 2025 rate: £83.30 (from £81.90)
- Weekly earnings threshold: £196.00 (from £151)
Child Benefit
- Eldest or only child: £26.05 (from £25.60)
- Additional children: £17.25 (from £16.95)
Disability Living Allowance / Child Disability Payment
Care Component
- Highest: £110.40 (from £108.55)
- Middle: £73.90 (from £72.65)
- Lowest: £29.20 (from £28.70)
Mobility component
- Higher: £77.05 (from £75.75)
- Lower: £29.20 (from £28.70)
Employment and Support Allowance (ESA)
- Single, under 25: £72.90 (from £71.70)
- Single, 25 or over: £92.05 (from £90.50)
- Lone parent, under 18: £72.90 (from £71.70)
- Lone parent, over 18: £92.05 (from £90.50)
- Couple, both under 18: £72.90 from (71.70)
- Couple, both under 18 with child: £110.15 (from £108.30)
- Couple, both under 18 (main phase): £92.05 (from £90.50)
- Couple, both under 18 with child (main phase): £144.70 (from £142.30)
- Couple, both over 18: £144.65 (from £142.25)
Guardian’s Allowance
- From April 2025: £22.10 (from £21.75)
Incapacity Benefit
- Long-term Incapacity Benefit: £141.25 (from £138.90)
Short-term Incapacity Benefit (under State Pension age)
- Lower rate: £106.65 (from £104.85)
- Higher rate: £126.10 (from £124.00)
Short-term Incapacity Benefit (over State Pension age)
- Lower rate: £135.50 (from £133.25)
- Higher rate: £141.25 (from £138.90)
Increase of Long-term Incapacity Benefit for age
- Lower rate: £8.30 (from £8.15)
- Higher rate £14.95 (from £14.70)
Invalidity Allowance (Transitional)
- Higher rate: £14.95 (from £14.70)
- Middle rate: £8.30 (from £8.15
- Lower rate: £8.30 (from £8.15)
Income Support
- Single, under 25: £72.90 (from £71.70)
- Single, 25 or over: £92.05 (from £90.50)
- Lone parent, under 18: £72.90 (from £71.70)
- Lone parent, 18 or over: £92.05 (from £90.50)
- Couple, both under 18: £72.90 (from £71.70)
- Couple, both under 18 – higher rate: £110.15 (from £108.30)
- Couple, one under 18, one under 25: £72.90 (from £71.70)
- Couple, one under 18, one 25 and over: £92.05 (from £90.50)
- Couple, both 18 or over: £144.65 (from £142.25)
Jobseeker’s Allowance (JSA)
Contribution based JSA
- Under 25: £72.90 (from £71.70)
- 25 or over: £92.05 (from £90.50)
Income-based JSA
- Under 25: £72.90 (from £71.70)
- 25 or over: £92.05 (from £90.50)
Lone parent
- Under 18: £72.90 (from £71.70)
- 18 or over: £92.05 (from £90.50)
- Couple, both under 18: £72.90 (from £71.70)
- Couple, both under 18 – higher rate: £110.15 (from £108.30)
- Couple, one under 18, one under 25: £72.90 (from £71.70)
- Couple, one under 18, one 25 and over: £92.05 (from £90.50)
- Couple, both 18 or over: £ (from £142.25)
Limited Capability for Work and Work-Related Activity
- Amount from April 2025: £423.26 (from £416.19)
- Carer amount: £201.68 (from £198.31)
Pension Credit
Standard minimum guarantee
- Single: £227.10 (from £218.15)
- Couple: £346.60 (from £332.95)
Additional amount for severe disability
- Single: £82.90 (from £81.50)
- Couple (one qualifies): £82.90 (from £81.50)
- Couple (both qualify): £165.75 (from £163.00)
Personal Independence Payment (PIP) / Adult Disability Payment
Daily Living Component
- Enhanced: £110.40 (from £108.55)
- Standard: £73.90 (from £72.65)
Mobility Component
- Enhanced: £77.05 (from £75.75)
- Standard: £29.20 (from £28.70)
State Pension
New State Pension
- Full rate: £230.25 (from £221.20)
Old/Basic State Pension
- Category A or B Basic State Pension: £176.45 (from £169.50)
- Category B (lower) Basic State Pension – spouse or civil
- Partner’s insurance: £103.30 (from £101.55)
- Category C or D – non-contributory: £103.30 (from £101.55)
Universal Credit (monthly rates)
Single
- Under 25: £316.93 (from £311.63)
- 25 or over: £400.14 (from £393.45)
Couples
- Joint claimants both under 25: £497.39 (from £489.23)
- Joint claimants, one or both 25 or over: £628.10 (from £617.60)
