Full listing of profit rises introduced within the Budget – enhance to Universal Credit, Carer’s Allowance and extra
- Chancellor has unveiled a 1.7% increase to many benefits from next year
Millions of benefits claimants will see payments rise 1.7 per cent from April 2025, figures in today’s Budget confirm.
Rachel Reeves announced many benefits would rise by 1.7 per cent – the level of consumer price index (CPI) inflation in September 2024.
This means more money for people who get benefits such as Pension Credit, Universal Credit, Personal Independence Payment (PIP) and Child Benefit – but the rises are not as generous as they are for those who receive state pension.
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Here is how the changes to major benefits will affect recipients – including how much extra will be paid from 2025.
All the figures listed are the maximum payments on offer, and the exact amount an individual claimant gets may vary.
Pension Credit
Single person to get up to £221.86 a week, up from £218.15 now.
Couples will get £338.61. an increase from £332.95.
Universal Credit
Under-25 single claimants will get £316.98 a month, up from £311.68 now.
Under-25 joint claimants will get £497.55 a month, an increase from £489.23.
Over-25 single claimants are to receive £400.14, up from from £393.45.
Over-25 joint claimants will get £628.09, an increase from the current £617.60.
The Government is also creating a new Fair Repayment Rate, which caps debt repayments made with Universal Credit at 15 per cent of the standard allowance.
It claims this will allow 1.2 million households to keep more of their Universal Credit award.
Carer’s Allowance
This will rise from £81.90 to £83.29 a week, while a carer can now earn over £10,000 a year while still receiving the allowance, up from £7,852 now.
Child Benefit
For one child, or the eldest child, this will rise from £25.60 to £26.04 a week
Each extra child then adds £16.95 to £17.24.
Housing Benefit
A single claimant of pension age will get £239.20 a month, up from £235.20 now.
A single parent that is a pensioner will get £239.20, an increase from £235.20.
A couple where one or both are pensioners will receive £357.98, up from £352.
PIP
The daily living component of PIP will rise from £108.55 to £110.40 (enhanced rate) or from £72.65 to £73.89 (standard rate).
Those getting the mobility component will see payments rise from £75.75 to £77.04 (enhanced rate) or from £28.70 to £29.19 (standard rate).
Employment support allowance (ESA)
An under-25 claimant will get £72.92 every two weeks, up from £71.70 now.
An over-25 single claimant will get £92.04. an increase from £90.50.
A single parent under 18 will get £72.92, up from £71.70.
A single parent over 18 will get £92.04, a rise from £90.50.
People on this benefit are slowly being shifted over to Universal Credit.
Attendance Allowance
The higher rate will increase from £108.55 to £110.40 every four weeks.
The lower rate will rise from £72.65 to £73.89.
Disability living allowance (DLA)
People on this benefit are being shifted over to PIP.
But for those that remain, the highest bracket of payment will rise from £108.55 to £110.40 every four weeks.
The middle amount will rise from £72.65 to £73.89 and the lowest bracket from £28.70 to £29.19.
The mobility component (higher bracket) will increase from £75.75 to £77.04.
The lower bracket of mobility component will go up from £28.70 to £29.19.
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