More than 23 million people receiving State Pension or benefits from the Department for Work and Pensions (DWP) will see payment rates increase from April 7, 2025. The New and Basic State Pensions will rise by 4.1 per cent under the Triple Lock, while most working age and disability benefits will increase by 1.7 per cent, in line with September's Consumer Price Index (CPI) inflation figure.
Additional State Pension payments will also rise by 1.7 per cent. Annual uprating letters will be sent to all claimants before the new rates take effect, usually in March. These letters serve as proof of benefit entitlement when applying for other financial support.
Pension Credit, which provides extra help for low-income pensioners, will increase by 4.1 per cent, taking the average annual award to over £4,000. More than 760,000 eligible pensioners are not claiming this benefit, which can also unlock annual Winter Fuel Payments. New claims made before December 21, 2025 that are successful will qualify for a backdated Winter Fuel Payment.
Carer's Allowance claimants will see the weekly earnings threshold rise from £151 to £196, equivalent to 16 hours at the National Minimum Wage. Chancellor Rachel Reeves also announced that deductions from Universal Credit payments will drop from 25 per cent to 15 per cent.
Devolved benefits in Scotland, such as Adult Disability Payment and Child Disability Payment, will rise by 1.7 per cent, matching DWP rates to prevent a two-tier system. A full breakdown of all benefits, including additional payments and the benefit cap, is available on GOV.UK.
HMRC has confirmed new rates for Child Benefit and Guardian's Allowance, while Tax Credits are ending on April 5, 2025, with no further changes.
