There are a number of Department for Work and Pensions benefits that will increase this April – here’s what is rising and how much more money you can expect if you are eligible
Millions of people are due to see their benefits including Universal Credit, Child Benefit, PIP and the State Pension rise in a matter of weeks.
Around 19.7 million households, containing 39.5 million people, are estimated to be in receipt of at least one DWP or HMRC benefit that will be uprated from April 2025. Welfare payments usually increase each year by the rate of inflation from the previous September.
The Consumer Prices Index (CPI) rate of inflation in September 2024 was announced to be 1.7%, which is therefore the rate that inflation-linked benefits and tax credits will rise by this year. The State Pension will increase by 4.1%under the triple lock promise. The triple lock guarantees the state pension rises each April by the highest out of inflation (using the previous September inflation figure), wages (average growth between May and July) or 2.5% – whichever is highest.
As well as the State Pension there are a number of benefits including Universal Credit, Child Benefits and Disability Living Allowance that will increase. Here are the benefits that are affected and what recipients can expect to receive.
Universal Credit:
Universal Credit is replacing six older legacy benefits – including Working Tax Credit, Child Tax Credit, Income Support, Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance and Housing Benefit. It is claimed by more than six million people in the UK.
The standard allowance – the basic amount you get before any additional payments or deductions are accounted for – will rise by:
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Single under 25: £311.68 a month to £316.98 a month
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Single 25 or over: £393.45 a month to £400.14 a month
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Joint claimants both under 25: £489.23 a month to £497.55 a month
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Joint claimants, one or both 25 or over: £617.60 a month to £628.10 a month
Some receive additional payments for factors such as dependent children or long-term illness.
Child element
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First child born before April 6, 2017: £333.33 a month to £339 a month
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First child born on or after April 6, 2017 or second child and subsequent child: £287.92 a month to £292.81 a month
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Disabled child element lower rate: £156.11 a month to £158.76 a month
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Disabled child higher rate: £487.58 a month to £495.87 a month
Limited capability for work
Carer element
Work allowance
Childcare cost element
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Maximum for one child: £1,014.63 a month to £1,031.88 a month
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Maximum for two or more children: £1,739.37 a month to £1,768.94 a month
Attendance Allowance
People eligible for this are those over the state pension age who need help or supervision with personal care because of illness or disability.
Lower rate
Higher rate
Carer’s Allowance
This benefit is given to those who are looking after someone for 35 hours or more a week. You don’t have to live with, or be related to them to be eligible.
Child Benefit
This monthly payment is for parents or anyone looking after a child.
Disability Living Allowance
Disability Living Allowance (DLA) is being replaced by Personal Independence Payment (PIP) for those with a disability. You can only apply for DLA if you’re under 16 and you live in England or Wales. Those who live in Scotland can apply for Child Disability Payment.
DLA care component rates will increase as follows:
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The highest rate: £108.55 a week to £110.40 a week
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The middle rate from £72.65 a week to £73.90 a week
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The lowest rate from £28.70 a week to £29.20 a week
DLA mobility component rates will increase as follows:
Pension Credit
If you’re above state pension age, this credit tops up your income. It also allows the recipient to access other things such as council tax discounts and free TV licences for over-75s.
Standard minimum guarantee
There are additional elements available if you’re a carer, you’re disabled, you’re looking after children, or if you have savings and reached state pension age before April 2016.
Personal Independence Payment (PIP)
This is for adults of working age who have an illness, disability or mental health condition. PIP has two components – a daily living rate and a mobility rate. You can be entitled to both or just one of these.
Daily living
Mobility
State Pension
If you’re a man born on or after April 6, 1951, or a woman born on or after April 6, 1953 you can claim the new state pension. The basic state pension is for men born before April 6, 1951, or a woman born before April 6, 1953.
