Millions of people across the UK will see an increase in their benefit payments this April. However, not everyone will benefit from these changes. The Department for Work and Pensions (DWP) has announced that while most benefits will rise, five key payments will remain unchanged.
If you’re receiving financial support, it’s essential to know what’s increasing, what’s staying the same, and how these changes might affect you. Let’s break it down.
Increases
The good news? Most benefit payments will see a 1.7% increase starting in April 2025. This adjustment is based on the Consumer Price Index (CPI) inflation rate from September 2024, which was the lowest in over three years.
Additionally, the State Pension will rise by 4.1% due to the triple-lock guarantee, ensuring pensioners receive the highest possible increase based on inflation, wage growth, or 2.5%.
Benefits increasing
- Universal Credit
- Child Benefit
- Disability Living Allowance
- Jobseeker’s Allowance
- Employment and Support Allowance
While a 1.7% increase is better than nothing, it might not make a significant difference for those struggling with the cost of living.
No Changes
Despite inflation and rising living costs, five key payments will not increase this year. The DWP has confirmed that these remain frozen:
- Benefit Cap – Limits on total benefits received per household stay unchanged.
- Capital Limits for Universal Credit – The amount of savings you can have before losing eligibility remains the same.
- Local Housing Allowance (LHA) – Rent assistance rates will not change after last year’s increase.
- Bereavement Support Payments – Financial aid for those who’ve lost a partner remains fixed.
- High Income Child Benefit Charge – The threshold for this tax charge remains at £60,000.
Universal Credit
The DWP assesses savings when determining eligibility for Universal Credit. The limits remain as follows:
| Savings Amount | Impact on Universal Credit |
|---|---|
| Below £6,000 | Ignored in calculations |
| £6,000 – £16,000 | Reduces benefit entitlement |
| Over £16,000 | Not eligible for Universal Credit |
If you have savings above £16,000, you won’t qualify for Universal Credit, but anything below £6,000 won’t affect your payments.
Bereavement Support Payments
The financial assistance available for those who have lost a spouse or civil partner remains unchanged:
| Category | One-Off Payment | Monthly Payments (for 18 months) |
|---|---|---|
| With children | £3,500 | £350 |
| Without children | £2,500 | £100 |
If you qualify for these payments, it’s important to note that the amounts will not increase this year.
State Pension Increase
Thanks to the triple-lock guarantee, the State Pension will rise by 4.1% in April 2025. The triple lock ensures that pensions increase based on the highest of:
- Inflation (September’s CPI rate)
- Average wage growth (from May to July)
- 2.5%
This ensures that pensioners’ incomes keep up with the rising cost of living.
Final Thoughts
While most benefit payments will increase slightly in April 2025, key payments like the Benefit Cap, Local Housing Allowance, and Bereavement Support Payments remain unchanged. The 1.7% rise in benefits may provide some relief, but it might not be enough for those struggling with financial pressures.
If you receive benefits, it’s crucial to check how these changes affect you and plan accordingly.
FAQs
Which benefits are increasing?
Universal Credit, Child Benefit, and Disability Living Allowance will rise by 1.7%.
What is the new State Pension increase?
The State Pension will increase by 4.1% under the triple-lock guarantee.
Will Local Housing Allowance rates change?
No, Local Housing Allowance rates will remain the same in April 2025.
What happens if I have over £16,000 in savings?
You will not be eligible for Universal Credit if your savings exceed £16,000.
Has the Benefit Cap increased?
No, the Benefit Cap remains unchanged despite inflation.
