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 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:
Single under 25: £311.68 a month to £316.98 a month
Single 25 or over: £393.45 a month to £400.14 a month
Joint claimants both under 25: £489.23 a month to £497.55 a month
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
First child born before April 6, 2017: £333.33 a month to £339 a month
First child born on or after April 6, 2017 or second child and subsequent child: £287.92 a month to £292.81 a month
Disabled child element lower rate: £156.11 a month to £158.76 a month
Disabled child higher rate: £487.58 a month to £495.87 a month
Limited capability for work
Limited capability for work: £156.11 a month to £158.76 a month
Limited capability for work or work-related activity: £416.19 a month to £423.27 a month
Carer element
£198.31 a month to £201.68 a month
Work allowance
Higher work allowance (no housing amount): £ 673 a month to £684 a month
Lower work allowance (with housing amount): £404 a month to £411 a month
Childcare cost element
Maximum for one child: £1,014.63 a month to £1,031.88 a month
Maximum for two or more children: £1,739.37 a month to £1,768.94 a month
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
£72.65 a week to £73.90 a week
Higher rate
£ 108.55 a week £110.40 a week
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.
£81.90 a week to £83.30 a week
This monthly payment is for parents or anyone looking after a child.
First or eldest child: £25.60 a week to £26.05 a week
Any additional child: £16.95 a week to £17.25 a week
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:
The highest rate: £108.55 a week to £110.40 a week
The middle rate from £72.65 a week to £73.90 a week
The lowest rate from £28.70 a week to £29.20 a week
DLA mobility component rates will increase as follows:
The higher rate: £75.75 a week to £77.05 a week
The lower rate: £28.70 a week to £29.20 a week
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
Single: £218.15 a week to £227.10 a week
Couple: £332.95
a week to £346.60 a week
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.
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
Lower rate: £72.65 a week to £73.90 a week
Higher rate: £108.55 a week to £110.40 a week
Mobility
Lower rate: £28.70 a week to £29.20 a week
Higher rate: £75.75 a week to £77.05 a week
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.
Full new state pension: £221.20 a week to £230.25 a week
Full old basic state pension: £169.50 a week to £176.45 a week
Get our money-saving tips and top offers direct to your inbox with the Mirror Money newsletter
