The 14 benefit rises set to be confirmed in Budget including Universal Credit – and the five unlikely to increase

MILLIONS of households will receive a pay rise worth up to hundreds of pounds a year starting in April 2025.

Payments typically increase each Spring to keep pace with the rising costs of essentials such as food, fuel, and household bills.

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The government is preparing to raise benefit rates by 1.7% in line with the consumer price index (CPI) measure of inflation from September 2024.

Chancellor Rachel Reeves is expected to confirm this measure when she delivers her Autumn Statement on Wednesday, October 30.

A 1.7% payment increase will mean that millions of people on benefits such as Universal Credit, housing benefit, and pension credit will start receiving more money from April 2025.

At the same time, the Chancellor is expected to confirm the triple lock on state pensions.

This will ensure that those on the state pension will receive a pay rise of 4.1% thanks to the government’s triple lock pledge.

Of course, the exact increase in your payments will depend on your individual circumstances.

We have detailed precisely how much your benefit and state pension payments could increase from April 2025.

Universal Credit

Standard allowance (per month)

• For those single and aged under 25, the standard allowance could rise from £311.68 to Â£316.98
• For those single and aged 25 or over, the standard allowance could rise from £393.45 to Â£400.14
• For joint claimants both under 25, the standard allowance will could from £489.23 to Â£497.55
• For joint claimants where one or both are 25 or over, the standard allowance could rise from £617.60 to Â£628.099

Extra amounts for children

• For those with a first child born before April 6, 2017, the extra amount could go up from £333.33 to Â£338.99
• For those with a child born on or after April 6, 2017 or second child and subsequent child, the extra amount could go up from £287.92 to Â£292.81
• For those with a disabled child, the lower rate addition payment could rise from £156.11 to Â£158.76 and the higher rate from £487.58 to Â£495.86

Extra amounts for limited capability for work

• For those deemed to have limited capability for work, the extra amount could go up from £156.11 to Â£158.76
• For those deemed to have limited capability for work or work-related activity, the extra amount could go up from £416.19 to £423.27

Extra amounts for being a carer

Universal Credit claimants can get an additional amount if caring for a severely disabled person for at least 35 hours a week.

The amount you get a month could rise from £198.31 to Â£201.68

The work allowance rates could also rise in April.

Increased work allowance

• The higher work allowance (no housing amount) for someone claiming Universal Credit with one or more dependent children or limited capability for work could rise from £673 to Â£684.44
• The lower work allowance for someone claiming Universal Credit with one or more dependent children or limited capability for work could rise from £404 to Â£410.87

Housing benefit

Single person

• Has reached pension age: Increases from £235.20 to Â£239.20

Lone parent

• Has reached state pension age: Increases from £235.20 to Â£239.20

Couple

• One or both have reached pension age: Increases from £352 to Â£357.98

Other

• Dependent child/young person aged under 20: Increased from £83.24 to Â£84.66

Personal independence payments (PIP)

Rates for personal independence payments (PIP) could rise by 1.7% in April.

PIP covers the extra cost of living for those suffering from illnesses or disabilities.

Payments for the daily living component could go up from £108.55 to Â£110.40 for enhanced and from £72.65 to Â£73.89 for standard.

The mobility component could also rise from £75.75 to Â£77.04 for enhanced and from £28.70 to Â£29.19 for standard.

Employment support allowance (ESA)

Employment Support Allowance (ESA) tops up workers’ pay if they’re on a low income.

Rates could change in April for those who are single and:

• Under 25-years-old, from Â£71.70 to £72.92
• Age 25 and older, from £90.50 to £92.04
• Lone parent under 18, from £71.70 to £72.92
• Lone parent 18 or over, from £90.50 to £92.04

Those in a couple could also see their rates rise:

• Both under 18-years-old, from £71.70 to £72.92
• Both under 18 years old with a child, from Â£108.30 to £110.14
• Both over 18, from £142.25 to £144.67
• Under 25, partner under 18, from £71.70 to £72.92
• Claimant 25 or over, partner under 18, from £90.50 to £92.04

There are also further rates for those with disabilities or caring responsibilities.

Check out the Government’s website for more details.

Attendance Allowance

Attendance Allowance helps with extra costs if you have a disability severe enough that you need someone to help look after you.

It’s paid at two different rates and how much you get depends on the level of care you need.

The higher rate could rise from Â£108.55 to Â£110.40 in April, while the lower rate could also go up from £72.65 to £73.89.

Pension credit

Guaranteed pension credit payments could go up from £218.15 a week to Â£221.86, or £332.95 to Â£338.61 for couples.

You may also get the “Savings Credit” part of pension credit if both of the following apply:

• You reached state pension age before April 6, 2016
• You saved some money for retirement, for example, a personal or workplace pension

This part of pension credit could rise from £17.01 a week to Â£17.30 or for couples, from £19.04 to Â£19.36.

Disability living allowance (DLA)

The Disability Living Allowance is being replaced by Personal Independence Payment (PIP) for disabled people.

You can only apply for DLA if you’re under 16. Older people whose DLA claim hasn’t come to an end may see payments go up.

• Highest amount could increase from Â£108.55 to Â£110.40
• Middle amount could increase from Â£72.65 to Â£73.89
• Lowest amount could increase from £28.70 to Â£29.19

And for the mobility component:

• Higher amount could increase from Â£75.75 to Â£77.04
• Lower amount could increase from Â£28.70 to Â£29.19

New-style jobseeker’s Allowance

New-style jobseekers Allowance (JSA) supports those who are out of work while they look for a job.

For under 25-year-olds, contribution-based and income-based payments could go up from £71.70 a week to Â£72.92, and from £90.50 to Â£92.04 a week for those who are older.

There are also further rates for couples, those with children, disabilities or caring responsibilities.

Carer’s Allowance

You can claim carer’s allowance if you care for someone at least 35 hours a week and they get certain benefits.

The rate could go up from £81.90 to Â£83.29 a week.

The threshold at which you become ineligible for carer’s allowance – known as the “cliff edge” will also rise from April.

Child benefit

Most parents in the UK can claim child benefit, but there are still certain eligibility rules.

You can claim if you’re responsible for a child under 16 or under 20 in approved education or training.

Only one person in the household can get child benefit, but there is no limit to how many children you can claim.

There are two child benefit rates – one for the eldest child and another for each further child or children.

The current rate for your eldest or only child is £25.60 per week, which could rise to £26.04 in April 2025.

You can also get £16.95 for every additional child and this could rise to £17.24 next Spring.

Maternity, paternity, adoption and shared parental pay

Pay for mums and dads taking time away for kids, including those adopting, has already gone up.

The statutory rates could increase from the start of April from £184.03 to Â£187.16, for maternity, adoption, paternity and shared parental pay.

Parental bereavement pay also increased by the same amounts.

Maternity allowance

New mums who don’t qualify for standard maternity pay could still get a payment adding up to thousands of pounds from Maternity Allowance.

It could also rise from £184.03 a week to Â£187.16 from April 2024.

Statutory sick pay

You might be able to get statutory sick pay (SSP) if you’re off work, and even if you aren’t sick yourself.

SSP is currently worth £116.75 per week and it is paid by your employer for up to 28 weeks.

It could increase in April to Â£118.73.

State pension

The state pension is now expected to rise from £11,502.40 to £11,975 per year – a £473 boost.

That’s because of the triple lock system, which sees the state pension rise in line with whatever is highest out of: wages for May to July, 2.5% or September’s inflation figures.

Revised statistics earlier this month revealed that growth in employees’ average total pay was 4.1% in the three months to July – not 4%.

As September’s inflation figure (1.7%) does not outpace this, state pension payments will rise by 4.1% in April 2025.

This means the full rate of the new state pension will go up from £221.20 a week to Â£230.27.

For the basic part of the old state pension, the rate will increase from £169.50 to Â£176.45.

What benefits aren’t likely to rise next year?

Benefit cap

The benefit cap is the total amount of benefits a household can receive, and it applies to most people aged between 16 and state pension age.

In Greater London, for couples (with or without children) or single people with a child of qualifying age, the cap is £25,323 a year. For single adult households without children, it’s £16,967.

Outside of London, the limits are £22,020 and £14,753, respectively.

Capital limits

Capital limits restrict the amount of savings you can have before you stop getting certain benefits.

This includes things like Universal Credit and Housing Benefit.

The lower limit remains at £6,000, meaning that any savings you have below that will be disregarded for benefits calculations.

The upper limit is usually £16,000 and will not be changing, meaning that if you have any savings over that, you won’t receive any benefits at all. 

If you have between £6,000 and £16,000, you’ll typically get a reduced amount, according to each benefit’s taper rules.

Bereavement support payments

Bereavement support payments give financial support to people following the death of a partner for a set period of time.

The most you can get is a one off payment of £3,500 and 18 monthly payments of £350 – this is called the “higher rate” and applies to those who had a child and claimed child benefit, or were pregnant.

The lower rate for those without children is a one-off payment of £2,500 and 18 monthly payments of £100.

These rates are unlikely to rise in line with inflation.

High income child benefit charge

While child benefit payments are expected to increase next year, the penalty imposed on high-income earners is unlikely to change.

If you or a partner has an income of over £60,000 then you may be liable to pay the high income child benefit charge.

If this is the case, it means you will have to pay some or all of the child benefit you receive back.

At the moment you are required to pay back 1% of your child benefit for every £200 earned over £60,000.

You’re not entitled to any child benefit if you earn over £80,000.

These thresholds are unlikely to change next April.