DWP benefits to increase from April 2025 – what is changing and how will it affect your money?
From April 2025, millions of people across the UK are going to get some relief in their DWP benefits (such as Universal Credit, State Pension, Child Benefit and Carers Allowance). The government has announced an increase in the amount of all these benefits. Like every year, this time too this increase has been made keeping in mind the inflation rate.
But the special thing is that pensioners will get more benefits this time, and the reason for this is the “triple lock system” – under which the pension increases according to whichever figure is the highest among the three.
What is the reason for the increase?
Every year the government reviews the amount of DWP benefits so that they can meet the needs of the people according to inflation. This time the increase has been decided on the basis of the inflation rate of September 2024 (CPI – 1.7%).
But the rules for state pension are somewhat different. For this, the “triple lock” rule applies, under which the pension increases according to the highest of the three:
- CPI inflation rate
- Wage increase
- 2.5%
This time the salary increase has been more than the CPI, i.e. 4.1%, so pensioners will get more benefit.
On what factors is this increase based?
- Inflation: When the prices of everyday things increase, the amount of benefits is also increased accordingly.
- Public pressure: Many organizations and people had demanded from the government to make a reasonable increase in benefits.
- Government budget: The government has to maintain a balance keeping in mind the economic situation.
The purpose of this is to provide some relief to the needy people, especially at times when inflation is constantly rising.
What will change in Universal Credit?
Universal Credit helps those who are unemployed, have low income or are unable to work. Its standard allowance amount is being increased from April 2025.
Not only this, but the additional support amount for children, disabled people and carers will also increase slightly.
Good news for state pensioners
State pensioners will benefit the most this time as they will get a 4.1% increase due to the triple lock. This increase will start coming into their accounts automatically, they will not need to apply again.
Whether you are a pensioner, a parent, a carer or on Universal Credit – these changes will definitely bring some relief to your monthly budget. Although they do not completely counter inflation, they will definitely ease the burden of expenses a little.
What should you do now?
- Check your current payments
- Plan your monthly expenses
- Make sure you are claiming all the benefits you are entitled to
Universal
Here’s how monthly standard allowances are changing:
| Category | Previous Rate (£) | New Rate (£) | Increase (£) |
|---|---|---|---|
| Single, under 25 | 311.68 | 316.98 | 5.30 |
| Single, 25 and over | 393.45 | 400.14 | 6.69 |
| Couple, both under 25 | 489.23 | 497.55 | 8.32 |
| Couple, one or both 25+ | 617.60 | 628.10 | 10.50 |
Plus, additional support for families and disabled individuals is increasing too:
| Category | Previous (£) | New (£) | Increase (£) |
|---|---|---|---|
| First child (before April 2017) | 333.33 | 339.00 | 5.67 |
| Child (after April 2017) & subsequent kids | 287.92 | 292.81 | 4.89 |
| Disabled child (lower rate) | 156.11 | 158.76 | 2.65 |
| Disabled child (higher rate) | 487.58 | 495.87 | 8.29 |
| Carer element | 198.31 | 201.68 | 3.37 |
And for those earning while on Universal Credit:
| Work Allowance Type | Previous (£) | New (£) |
|---|---|---|
| Higher (no housing costs) | 673.00 | 684.00 |
| Lower (with housing costs) | 404.00 | 411.00 |
Pension
Thanks to the triple lock, the State Pension sees a solid boost this year.
| Pension Type | Old Rate (£/week) | New Rate (£/week) | Increase (£) |
|---|---|---|---|
| Full New State Pension | 221.20 | 230.25 | 9.05 |
| Full Basic State Pension | 169.50 | 176.45 | 6.95 |
Plus, Pension Credit for low-income retirees is also rising:
| Claimant Type | Old (£/week) | New (£/week) | Increase (£) |
|---|---|---|---|
| Single claimant | 218.15 | 227.10 | 8.95 |
| Couple | 332.95 | 346.60 | 13.65 |
Disability
Disability-related payments are getting a modest but important bump as well.
Attendance Allowance:
| Rate | Old (£/week) | New (£/week) |
|---|---|---|
| Lower rate | 72.65 | 73.90 |
| Higher rate | 108.55 | 110.40 |
Carer’s Allowance:
| Old (£/week) | New (£/week) |
|---|---|
| 81.90 | 83.30 |
Children
Even Child Benefit is going up—though only slightly:
| Child Type | Old (£/week) | New (£/week) | Increase (£) |
|---|---|---|---|
| First child | 25.60 | 26.05 | 0.45 |
| Additional children | 16.95 | 17.25 | 0.30 |
Independence
For people receiving PIP or DLA, here’s how the weekly rates are changing:
| Benefit Component | Old (£) | New (£) |
|---|---|---|
| PIP Daily Living (Higher) | 108.55 | 110.40 |
| PIP Daily Living (Lower) | 72.65 | 73.90 |
| PIP Mobility (Higher) | 75.75 | 77.05 |
| PIP Mobility (Lower) | 28.70 | 29.20 |
While the increases are modest, they’re crucial for helping with daily living and mobility costs.
Frequently asked questions (FAQs)
When will the increase in DWP benefits come into effect?
This increase will be automatically implemented from April 2025.
Why is the state pension increasing by 4.1%?
Because this year the wage increase was more than the CPI, and according to the triple lock rule, the highest figure is taken as the basis.
Do I have to apply again?
No, those who already have benefits will start getting this increase automatically.
Will Universal Credit increase for family members as well?
Yes, there has been some increase in the portion received for children and carers.
Is this increase equal to inflation?
Not completely, but this increase will definitely give some financial relief to the people.
