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% under the Triple Lock's earnings growth measure, while most working-age and disability benefits will increase by 1.7%, matching the September Consumer Price Index (CPI) inflation rate.
Additional State Pension payments will also rise by 1.7%. Annual uprating letters will be sent to claimants in March, which should be kept safe as proof of entitlement for other financial support.
Pension Credit will increase by 4.1%, bringing the average annual award to over £4,000. Over 760,000 eligible pensioners are not claiming this benefit, which can unlock Winter Fuel Payments with an award of just £1 per week. New claims made before December 21, 2025 that are successful will qualify for 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 in October that Universal Credit deductions will drop from 25% to 15%.
Devolved benefits in Scotland, such as Adult Disability Payment, will rise by 1.7%, matching DWP rates to prevent a two-tier system. Full weekly rates for all benefits are available on GOV.UK.
HMRC confirmed Child Benefit and Guardian's Allowance rates will also increase, while Tax Credits are ending on April 5, 2025 with no changes.
