DWP Announces Increased Payments for State Pension, Universal Credit, and DLA – What You Need to Know

The Department for Work and Pensions (DWP) has confirmed that millions of people across the UK will receive increased benefit payments starting in April 2025. The changes, affecting State Pension, Universal Credit, and Disability Living Allowance (DLA), are aimed at helping claimants manage the rising cost of living.

Here’s a breakdown of the confirmed increases and what they mean for beneficiaries.

State Pension Increase in April 2025

From April 2025, the State Pension will increase in line with the Triple Lock system, ensuring payments keep up with wage growth or inflation, whichever is highest.

• New State Pension (for those who reached pension age after April 6, 2016): £221.20 → £230.25 per week.
• Basic State Pension (for those who reached pension age before April 6, 2016): £169.50 → £176.45 per week.

This 4.1% increase reflects wage growth and will provide an extra £470 per year for retirees.

Universal Credit Increases for 2025

Universal Credit claimants will see their standard allowances rise by 1.7% in April 2025, keeping up with Consumer Price Index (CPI) inflation.

New Universal Credit Rates from April 2025:

• Single Claimants:
  • Under 25: £311.68 → £316.98 per month.
  • 25 and over: £393.45 → £400.14 per month.
• Couples (Joint Claimants):
  • Both under 25: £489.23 → £497.55 per month.
  • One or both over 25: £617.60 → £628.10 per month.

The changes will benefit over 5.8 million people who rely on Universal Credit to help cover essential expenses.

Disability Living Allowance (DLA) and Personal Independence Payment (PIP) Increases

DLA and Personal Independence Payment (PIP) rates will also rise by 1.7% from April 2025, providing additional financial support for those with disabilities.

New DLA and PIP Rates:

• Care Component:
  • Highest Rate: £101.75 → £103.50 per week.
  • Middle Rate: £68.10 → £69.25 per week.
  • Lowest Rate: £26.90 → £27.35 per week.
• Mobility Component:
  • Higher Rate: £71.00 → £72.20 per week.
  • Lower Rate: £26.90 → £27.35 per week.

Carer’s Allowance Update

Carer’s Allowance will increase from £81.90 to £83.30 per week, supporting those who provide unpaid care for disabled individuals.

Additionally, the earnings threshold for Carer’s Allowance will rise from £151 to £196 per week, allowing carers to earn more while still receiving support.

Benefit Cap Remains Unchanged

The Benefit Cap, which limits the total amount of benefits a household can receive, will stay the same for 2025.

• Greater London:
  • Couples or families: £25,323 per year.
  • Single adults: £16,967 per year.
• Rest of UK:
  • Couples or families: £22,020 per year.
  • Single adults: £14,753 per year.

Other Important Changes in 2025

• National Minimum Wage:
  • Workers over 21: £12.21 per hour.
  • Workers aged 18-20: £10.00 per hour.
  • Apprentices & Under 18s: £6.40 per hour.
• Household Support Fund:
  • This government scheme will end on March 31, 2025.
• Tax Credit Transition:
  • Tax Credits will be fully replaced by Universal Credit from April 5, 2025.

What This Means for You

These benefit increases aim to help UK residents cope with inflation and rising costs. While some have welcomed the changes, critics argue that a 1.7% increase in Universal Credit and disability benefits may not fully reflect the cost of living rise.

How to Check Your New Payments

Claimants can log into their DWP online account or visit GOV.UK to confirm their new payment rates and eligibility criteria.

With millions set to benefit from these changes, the government urges claimants to check their payment schedules and eligibility requirements to maximize their benefits in 2025.

For further information on individual benefits, visit GOV.UK, the official UK government website.

This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.