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 the September 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 claimants before the new rates take effect, usually in March. These letters serve as proof of benefit entitlement for other financial support applications.
Pension Credit, which provides extra help for low-income pensioners, will increase by 4.1 per cent, bringing the average annual award to over £4,000. Over 760,000 pensioners entitled to this benefit are not claiming it. An award of just £1 per week qualifies claimants for annual Winter Fuel Payments. New claims made before December 21, 2025 that are successful will receive a backdated Winter Fuel Payment.
Carer's Allowance weekly earnings threshold will 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 from October.
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. The DWP has published full weekly and monthly rates for the new financial year on GOV.UK, including additional payments, the benefit cap, and new deduction rates.
HMRC confirmed Child Benefit and Guardian's Allowance rates will also change. Tax Credits are ending on April 5, 2025, so no payment changes apply. Claimants are advised to keep their uprating letters safe for use as proof of entitlement.
