The Department for Work and Pensions (DWP) has confirmed that Personal Independence Payment (PIP) and other benefits will increase by 1.7% from April 2025. The state pension will rise by 4.1% under the triple lock, while the minimum wage will increase by 6.7%, providing a £1,400 pay rise for millions of workers.
However, households face significant cost increases from April, including higher energy, water, and council tax bills. Inflation remains above the Bank of England's 2% target at 2.5% in December, and is not expected to fall below this level until 2027.
According to the Joseph Rowntree Foundation, 21% of people in the UK (14.3 million) were in poverty in 2022/23, including 8.1 million working-age adults, 4.3 million children, and 1.9 million pensioners.
Benefit payments will be made as usual in March, with no bank holidays affecting schedules. The DWP is continuing to migrate legacy benefits to Universal Credit, aiming to complete the process by January 2026. A green paper on cutting sickness and disability benefit spending is expected in spring 2025.
Nearly £23 billion in benefits goes unclaimed each year, according to Policy in Practice. The Household Support Fund has been extended until March 2025, and budgeting advance loans are available for Universal Credit claimants facing emergencies. From April 2025, deductions from Universal Credit for loan repayments will be capped at 15% of the standard allowance, down from 25%.
