MILLIONS of households will receive boosted benefit payments starting in April 2025.
Benefits typically increase each Spring to keep pace with the rising costs of essentials such as food, fuel, and household bills.
Starting next April, claimants will see their payments rise by 1.7%.
Rachel Reeves confirmed the uplift when she delivered her Autumn Statement yesterday.
At the same time, the Chancellor also confirmed the triple lock on state pensions.
This means those on the state pension will receive a pay rise of 4.1% from next spring.
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She said: "Our manifesto committed to the triple lock meaning spending on the state pension is forecast to rise by over £31billionn by 2029-2030 to ensure that our pensioners are protected in their retirement.
"This commitment means that while working-age benefits will be uprated in line with CPI, at 1.7% the basic and new state pension will be uprated by 4.1% in 2025-26."
Of course, the exact increase in your payments will depend on your individual circumstances.
We have detailed precisely how much your benefit and state pension payments will increase from April 2025.
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Universal Credit
Standard allowance (per month)
- For those single and aged under 25, the standard allowance will rise from £311.68 to £316.98
- For those single and aged 25 or over, the standard allowance will rise from £393.45 to £400.14
- For joint claimants both under 25, the standard allowance will rise from £489.23 to £497.55
- For joint claimants where one or both are 25 or over, the standard allowance will rise from £617.60 to £628.099
Extra amounts for children
- For those with a first child born before April 6, 2017, the extra amount will go up from £333.33 to £338.99
- For those with a child born on or after April 6, 2017 or second child and subsequent child, the extra amount will go up from £287.92 to £292.81
- For those with a disabled child, the lower rate addition payment will rise from £156.11 to £158.76 and the higher rate from £487.58 to £495.86
Extra amounts for limited capability for work
- For those deemed to have limited capability for work, the extra amount will go up from £156.11 to £158.76
- For those deemed to have limited capability for work or work-related activity, the extra amount will go up from £416.19 to £423.27
Extra amounts for being a carer
Universal Credit claimants can get an additional amount if caring for a severely disabled person for at least 35 hours a week.
The amount you get a month will rise from £198.31 to £201.68
The work allowance rates will also rise in April.
Increased work allowance
- The higher work allowance (no housing amount) for someone claiming Universal Credit with one or more dependent children or limited capability for work will rise from £673 to £684.44
- The lower work allowance for someone claiming Universal Credit with one or more dependent children or limited capability for work will rise from £404 to £410.87
Housing benefit
Single person
- Has reached pension age: Increases from £235.20 to £239.20
Lone parent
- Has reached state pension age: Increases from £235.20 to £239.20
Couple
- One or both have reached pension age: Increases from £352 to £357.98
Other
- Dependent child/young person aged under 20: Increased from £83.24 to £84.66
Personal independence payments (PIP)
Rates for personal independence payments (PIP) will rise by 1.7% in April.
PIP covers the extra cost of living for those suffering from illnesses or disabilities.
Payments for the daily living component will go up from £108.55 to £110.40 for enhanced and from £72.65 to £73.89 for standard.
The mobility component will also rise from £75.75 to £77.04 for enhanced and from £28.70 to £29.19 for standard.
Employment support allowance (ESA)
Employment Support Allowance (ESA) tops up workers' pay if they're on a low income.
Rates could change in April for those who are single and:
- Under 25-years-old, from £71.70 to £72.92
- Age 25 and older, from £90.50 to £92.04
- Lone parent under 18, from £71.70 to £72.92
- Lone parent 18 or over, from £90.50 to £92.04
Those in a couple could also see their rates rise:
- Both under 18-years-old, from £71.70 to £72.92
- Both under 18 years old with a child, from £108.30 to £110.14
- Both over 18, from £142.25 to £144.67
- Under 25, partner under 18, from £71.70 to £72.92
- Claimant 25 or over, partner under 18, from £90.50 to £92.04
There are also further rates for those with disabilities or caring responsibilities.
Attendance Allowance
Attendance Allowance helps with extra costs if you have a disability severe enough that you need someone to help look after you.
It’s paid at two different and how much you get depends on the level of care you need.
The higher rate will rise from £108.55 to £110.40 in April, while the lower rate will also go up from £72.65 to £73.89.
Pension credit
Guaranteed pension credit payments will go up from £218.15 a week to £221.86, or £332.95 to £338.61 for couples.
You may also get the "Savings Credit" part of pension credit if both of the following apply:
- You reached state pension age before April 6, 2016
- You saved some money for retirement, for example, a personal or workplace pension
This part of pension credit will rise from £17.01 a week to £17.30 or for couples, from £19.04 to £19.36.
Disability living allowance (DLA)
The Disability Living Allowance is being replaced by Personal Independence Payment (PIP) for disabled people.
You can only apply for DLA if you're under 16. Older people whose DLA claim hasn't come to an end may see payments go up.
- Highest amount will increase from £108.55 to £110.40
- Middle amount will increase from £72.65 to £73.89
- Lowest amount will increase from £28.70 to £29.19
And for the mobility component:
- Higher amount will increase from £75.75 to £77.04
- Lower amount will increase from £28.70 to £29.19
New-style jobseeker's Allowance
New-style jobseekers Allowance (JSA) supports those who are out of work while they look for a job.
For under 25-year-olds, contribution-based and income-based payments will go up from £71.70 a week to £72.92, and from £90.50 to £92.04 a week for those who are older.
There are also further rates for couples, those with children, disabilities or caring responsibilities.
Carer's Allowance
You can claim carer's allowance if you care for someone at least 35 hours a week and they get .
The rate will go up from £81.90 to £83.29 a week.
The threshold at which you become ineligible for carer's allowance - known as the "cliff edge" will also rise from April.
Child benefit
Most parents in the UK can claim child benefit, but there are still certain eligibility rules.
You can claim if you're responsible for a child under 16 or under 20 in approved education or training.
Only one person in the household can get child benefit, but there is no limit to how many children you can claim.
There are two child benefit rates - one for the eldest child and another for each further child or children.
The current rate for your eldest or only child is £25.60 per week, which will rise to £26.04 in April 2025.
You can also get £16.95 for every additional child and this will rise to £17.24 next Spring.
Maternity, paternity, adoption and shared parental pay
Pay for mums and dads taking time away for kids, including those adopting, has already gone up.
The statutory rates will increase from the start of April from £184.03 to £187.16, for maternity, adoption, paternity and shared parental pay.
Parental bereavement pay also increased by the same amounts.
Maternity allowance
New mums who don't qualify for standard maternity pay could still get a payment adding up to thousands of pounds from Maternity Allowance.
It will also rise from £184.03 a week to £187.16 from April 2024.
Statutory sick pay
You might be able to get statutory sick pay (SSP) if you're off work, and even if you aren't sick yourself.
SSP is currently worth £116.75 per week and it is paid by your employer for up to 28 weeks.
It will increase in April to £118.73.
State pension
The state pension will rise from £11,502.40 to £11,975 per year - a £473 boost.
That's because of the triple lock system, which sees the state pension rise in line with whatever is highest out of: wages for May to July, 2.5% or September's inflation figures.
Revised statistics earlier this month revealed that growth in employees' average total pay was 4.1% in the three months to July - not 4%.
As September's inflation figure (1.7%) did not outpace this, state pension payments will rise by 4.1% in April 2025.
This means the full rate of the new state pension will go up from £221.20 a week to £230.27.
For the basic part of the old state pension, the rate will increase from £169.50 to £176.45.
Are you missing out on benefits?
YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to
Charity works out what you could get.
Entitledto's determines whether you qualify for various benefits, tax credit and Universal Credit.
MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto's data.
You can use to determine which benefits you could receive and how much cash you'll have left over each month after paying for housing costs.
Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.
What benefits won't rise next year?
Benefit cap
The benefit cap is the total amount of benefits a household can receive, and it applies to most people aged between 16 and state pension age.
In Greater London, for couples (with or without children) or single people with a child of qualifying age, the cap is £25,323 a year. For single adult households without children, it’s £16,967.
Outside of London, the limits are £22,020 and £14,753, respectively.
Capital limits
Capital limits restrict the amount of savings you can have before you stop getting certain benefits.
This includes things like Universal Credit and Housing Benefit.
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.
If you have between £6,000 and £16,000, you'll typically get a reduced amount, according to each benefit's taper rules.
Bereavement support payments
Bereavement support payments give financial support to people following the death of a partner for a set period of time.
The most you can get is a one off payment of £3,500 and 18 monthly payments of £350 - this is called 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.
These rates won't rise in line with inflation next spring.
High income child benefit charge
While child benefit payments are expected to increase next year, the penalty imposed on high-income earners won't change.
If you or a partner has an income of over £60,000 then you may be liable to pay the high income child benefit charge.
If this is the case, you will have to pay back some or all of the child benefit you receive.
You are required to pay back 1% of your child's benefit for every £200 earned over £60,000.
You're not entitled to any child benefit if you earn over £80,000.
Local housing allowance
The allowance sets the maximum amount people renting from a private landlord can claim in housing benefit or Universal Credit.
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In April, rates increased to cover the cheapest 30% of local market rents in the 12 months before September 2023 after being frozen since 2020.
However, in a written statement yesterday, 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."
What is local housing allowance?
LOCAL Housing Allowance (LHA) sets the maximum amount people renting from a private landlord can claim in Housing Benefit or Universal Credit.
Around 38% of England's 4.6million private renters receive some form of housing benefit.
The amount you can claim depends on the area you live in and the size of the property you rent.
LHA rates are usually set on April 1 each year for the following 12 months, but the current rate has been frozen since 2020.
However, rents have increased significantly since then.
In the 12 months to January 2023, private rents rose by an average of 4.4% across the UK, according to the Index of Private Housing Rental Prices.
It's estimated that 844,000 households now have rents higher than the maximum level that LHA will cover.
New analysis by Zoopla for ITV found the typical rental cost for a two bedroom home in England is around 22% higher than the average LHA rate.
Other perks of LHA have gradually been clawed back since it was introduced in 2008.
The allowance originally let claimants "keep the difference" of up to £15 per week, so those who chose to rent a cheaper property could increase their available income instead. However, this was scrapped in 2011.
The government also planned to introduce LHA to the social housing sector from April 2019, but the proposals were abandoned in 2017.