DWP Benefit Payments to Increase by 1.7% from April 7, 2025 – What Does It Mean for You?
The Department for Work and Pensions (DWP) has confirmed that benefit payments will increase by 1.7% from April 7, 2025.
This change, which aligns with the Consumer Prices Index (CPI) inflation rate from September 2024, is intended to support individuals and families who rely on Universal Credit, Child Benefit, State Pension, and other welfare payments.
Over 19 million households across the UK, covering approximately 39.5 million individuals, are expected to receive at least one DWP or HMRC benefit that will be adjusted under this new increase.
The State Pension will see a more significant rise of 4.1%, as part of the triple lock guarantee, ensuring pensioners receive the highest possible increase based on inflation, wage growth, or a minimum of 2.5%.
This guide explains who will benefit from these changes, how much payments will increase, and how to check your updated benefit rates.
What Is the DWP Benefit Increase in 2025?
The DWP benefit increase is part of the government’s annual review of welfare payments.
Every year, benefit rates are reassessed to ensure that they keep up with inflation and provide adequate financial support to those in need.
For April 2025, the government has announced:
- A 1.7% increase for most inflation-linked benefits and tax credits, based on the Consumer Prices Index (CPI) rate from September 2024.
- A 4.1% increase in the State Pension, following the triple lock system.
The triple lock guarantee ensures that the State Pension rises by the highest of:
- Inflation (CPI rate for September 2024 – 1.7%)
- Average earnings growth (May–July 2024 – 4.1%)
- A minimum increase of 2.5%
Since wage growth was higher than inflation, the 4.1% increase will apply to the State Pension in 2025.
Why Is the DWP Increasing Benefit Payments in 2025?
There are several key reasons behind the DWP’s decision to increase benefits in April 2025:
- Inflation Adjustments: The increase ensures that welfare payments keep pace with inflation, preventing recipients from losing financial value.
- Cost-of-Living Pressures: Rising food prices, energy bills, and housing costs mean that low-income households and pensioners require additional support.
- The Triple Lock on Pensions: State Pension payments are rising at a higher rate to protect retirees from economic hardship.
- Welfare Policy Commitments: The government has committed to reviewing and increasing benefits annually to ensure fair financial support for vulnerable groups.
Although the 1.7% increase is lower than the 10.1% increase in 2023, it reflects the current economic conditions and inflation rate.
Which UK Benefits Will Increase in April 2025?
The following DWP benefits will see an increase from April 7, 2025:
Universal Credit Increases
Universal Credit is replacing six older benefits, including Working Tax Credit, Child Tax Credit, Income Support, and Housing Benefit. It is currently claimed by over six million people in the UK.
| Claimant Type | 2024 Rate | 2025 Rate (1.7% Increase) |
| Single under 25 | £311.68 | £316.98 |
| Single 25 or over | £393.45 | £400.14 |
| Joint claimants both under 25 | £489.23 | £497.55 |
| Joint claimants, one or both 25 or over | £617.60 | £628.10 |
Child Benefit Increases
| Child | 2024 Rate | 2025 Rate |
| First or eldest child | £25.60 | £26.05 |
| Additional children | £16.95 | £17.25 |
State Pension Increases
| Pension Type | 2024 Rate | 2025 Rate (4.1% Increase) |
| Full new State Pension | £221.20 | £230.25 |
| Full old basic State Pension | £169.50 | £176.45 |
Personal Independence Payment (PIP) Increases
| Component | 2024 Rate | 2025 Rate |
| Daily Living (lower rate) | £72.65 | £73.90 |
| Daily Living (higher rate) | £108.55 | £110.40 |
| Mobility (lower rate) | £28.70 | £29.20 |
| Mobility (higher rate) | £75.75 | £77.05 |
Other Benefits Increasing in 2025
Carer’s Allowance: £81.90 → £83.30 per week
Disability Living Allowance (DLA):
- Care Component (highest rate): £108.55 → £110.40 per week
- Mobility Component (higher rate): £75.75 → £77.05 per week
Attendance Allowance:
- Lower rate: £72.65 → £73.90 per week
- Higher rate: £108.55 → £110.40 per week
Pension Credit:
- Single person: £218.15 → £227.10 per week
- Couple: £332.95 → £346.60 per week
Will the Benefit Increase Be Enough to Cover the Cost of Living in 2025?
The 1.7% increase in benefits aims to help low-income households, pensioners, and individuals with disabilities manage their expenses.
However, many experts argue that this increase may not be sufficient to fully cover the rising cost of living in the UK.
The Consumer Prices Index (CPI) inflation rate was 1.7% in September 2024, which is why benefits are increasing by this amount.
However, this does not necessarily mean that living costs will remain stable. Prices of essential goods and services, including food, energy bills, housing, and transportation, fluctuate throughout the year, often rising at a higher rate than inflation.
In previous years, the government introduced Cost of Living Payments to assist low-income families, pensioners, and individuals on disability benefits.
As of now, there is no official confirmation of any additional cost-of-living support in 2025. However, those struggling financially can explore:
- Council Tax Reduction Schemes
- Energy Bill Discounts and Winter Fuel Payments
- Food Bank Support and Local Welfare Assistance
- Discretionary Housing Payments (DHPs) for rent support
While the benefit increase provides some relief, it is crucial for recipients to budget effectively and explore additional financial aid programs if needed.
Will There Be Any Future Changes to the DWP Benefit System?
The UK welfare system is constantly evolving, and future changes to DWP benefits could be introduced based on economic conditions, government policies, and inflation trends. Some possible adjustments that could happen in the coming years include:
Further Benefit Increases in 2026
- The government reviews welfare payments annually, so another increase will likely be introduced in April 2026, depending on inflation and wage growth.
Potential Changes to the Triple Lock System
- While the triple lock guarantee currently protects State Pension payments, there have been discussions about modifying or scrapping it due to rising government spending.
- If the triple lock is removed, future pension increases may not be as high as they are now.
Universal Credit System Adjustments
- The migration from legacy benefits to Universal Credit is still ongoing, and further refinements may be introduced to improve the system.
Possible New Cost-of-Living Support
- If the economic situation deteriorates, the government may introduce further financial assistance programmes for vulnerable groups.
- Staying updated with DWP announcements and government budget revisions is vital to remain informed about any forthcoming changes to the welfare system.
How Can You Check Your New Benefit Payment Amount?
If you receive DWP benefits, it is important to confirm how much you will receive after the 1.7% increase in April 2025.
The State Pension increase (4.1%) and other adjustments to welfare payments will be automatically applied, but you should verify the new amounts to ensure accuracy.
Here are three ways to check your updated benefit payment amount:
Use the DWP Benefits Calculator
The UK government provides an online benefits calculator that helps claimants estimate their payments based on their circumstances, household income, and eligibility.
- Visit the official DWP website and enter your details.
- The system will calculate how much you should receive after the April 2025 increase.
- This tool can also help determine if you are eligible for other benefits, such as Housing Benefit or Council Tax Support.
Check Your Universal Credit or State Pension Online Account
If you claim Universal Credit, State Pension, or other benefits that provide online access, you can check your payment details through your official government account.
For Universal Credit Claimants
- Log in to your Universal Credit journal through the Gov.uk website.
- Check your next scheduled payment and look for any changes after April 2025.
- If you believe the increase has not been applied, report the issue directly through your online account.
For State Pension Claimants
- If you are receiving State Pension, you can check your updated payment details through the GOV.UK State Pension service.
- You can also request a pension forecast to see future increases and eligibility details.
Contact Jobcentre Plus or the DWP Helpline
If you are unsure about your new benefit amount or have concerns about missing payments, you can contact Jobcentre Plus or the DWP Helpline for assistance.
- Universal Credit Helpline: Call 0800 328 5644 (Monday to Friday, 8 am – 6 pm).
- State Pension Helpline: Call 0800 731 7898 (Monday to Friday, 8 am – 6 pm).
- Disability Benefits Helpline: Call 0800 121 4433 for PIP-related queries.
Additional Tips for Claimants:
- Check your bank statements regularly to ensure your benefit payments match the new rates.
- Report any discrepancies immediately to avoid delays in receiving corrected payments.
- Seek advice from Citizens Advice if you encounter difficulties understanding your benefit entitlements.
By following these steps, you can ensure that you receive the correct benefit payments after April 7, 2025 and take advantage of any additional support available.
Frequently Asked Questions (FAQs)
When will the DWP benefit increase take effect?
The 1.7% increase in DWP benefits and 4.1% State Pension rise will take effect from April 7, 2025.
Will my benefit payments automatically increase, or do I need to apply?
If you are already receiving DWP benefits or State Pension, your payments will be automatically adjusted. There is no need to reapply.
Why is the State Pension increasing by 4.1% while other benefits rise by only 1.7%?
The State Pension follows the triple lock system, which ensures it rises by the highest of inflation (1.7%), wage growth (4.1%), or 2.5%. In 2025, wage growth was highest at 4.1%, so this percentage was used.
How can I check how much my new benefit payment will be?
You can check your updated benefit amount by:
- Using the DWP benefits calculator on Gov.uk
- Logging into your Universal Credit or State Pension online account
- Contacting Jobcentre Plus or the DWP helpline
Will there be additional cost-of-living payments in 2025?
As of now, the government has not confirmed any extra cost-of-living support for 2025. However, other financial aid schemes, such as Council Tax Reduction and Winter Fuel Payments, may be available.
What if my benefit payment does not increase as expected?
If your payment is incorrect or lower than expected, contact Jobcentre Plus or the DWP Helpline to resolve the issue. You can also check your online account or bank statement for any discrepancies.
Will there be another increase in benefits in 2026?
The DWP reviews benefits every year, so another increase could be introduced in April 2026, depending on inflation, wage growth, and government policies.
