Chancellor Rachel Reeves has confirmed that benefits will rise by 1.7% in line with September's inflation data, while the state pension will increase by 4.1% under the triple lock mechanism. These new rates will take effect from April 7, 2025, until April 6, 2026. However, many claimants will not see the increase on April 7 due to the Department for Work and Pensions (DWP) paying most benefits, including state pension, in arrears.
The new state pension, set to rise by around £475 per year, is usually paid about four weeks in arrears, meaning pensioners likely will not see the extra £9 per week until May. Universal Credit payments typically take around five weeks to receive the first payment and are then paid monthly. This year, some Universal Credit claimants did not see the rise until June.
The delay also applies to devolved benefits in Scotland, such as Adult Disability Payment, Child Disability Payment, Carer Support Payment, and Pension Age Disability Payment, all of which will increase by 1.7%. The DWP has published the updated weekly and monthly rates on the Gov.uk website.
Additionally, the Tax Credit service is set to close on April 5, 2025, with all remaining accounts being closed following the managed migration to Universal Credit over the past few years.
