The UK government has confirmed increases to 11 benefits, including Personal Independence Payment (PIP), Universal Credit, and Carer's Allowance, effective from April 2027. The changes were announced in the recent Budget by Chancellor John Healey, who pledged to help families navigate global economic pressures.
Pensions and Pension Credit
The full new State Pension will rise by approximately £490 a year, climbing to £250.75 a week from April 2027. The basic State Pension will also increase, with the rise based on the same earnings-linked calculation. The guarantee ensures payments increase by whichever is highest out of inflation, average wage growth, or 2.5%.
Pension Credit's minimum guarantee will rise by 3.9%, in line with earnings growth, landing at £247.30 a week for single pensioners and £377.40 for couples. The savings element of Pension Credit will rise by 3.5%.
Disability and Care Benefits
PIP rates will rise by 3.5% from April 2027, benefiting those with additional living or mobility costs from a disability. Attendance Allowance, which supports people above State Pension age with disabilities or health conditions, will also increase by 3.5%. Carer's Allowance, for those providing at least 35 hours of care per week, will rise by 3.5%.
Disability Living Allowance, which assists with costs of caring for a disabled child, will see existing claims increase in line with relevant uprating rules. Industrial Injuries Disablement Benefit, for those ill or disabled from workplace accidents or occupational diseases, will rise by 3.5%.
Universal Credit and Other Payments
The standard allowance for Universal Credit will go up, with a single claimant aged 25 or over receiving around £219 more annually than if the payment had increased only in line with inflation. For couples where at least one partner is aged 25 or over, the boost will be approximately £344 a year above an inflation-only increase.
Guardian's Allowance, for people raising a child who has lost both parents, will rise in line with annual uprating. Statutory Sick Pay and Statutory Maternity Pay will increase by 3.5%. Child Benefit rates are covered by annual uprating arrangements, assisting families with the cost of bringing up children.
