New payment rates have been estimated for next year(Image: Getty Images)

New DWP payment rates for State Pension, Universal Credit and other benefits starting April 2025

by · ChronicleLive

Benefit claimants nationwide are set to see a significant increase in their payments in just a few months. The Department for Work and Pensions (DWP) will roll out new payment rates for the 2025/26 financial year, starting from April 7, 2025.

Key increases include the New and Basic State Pension, which will rise by 4.1 per cent under the Triple Lock. In contrast, most working age and disability benefits will see an increase based on the September Consumer Price Index (CPI) inflation rate of 1.7 per cent.

Claimants receive annual uprating letters before the new payment rates kick in, informing them about the changes. It's vital to keep this letter safe as it can often serve as proof of benefit entitlement when applying for other types of financial support.

Pension Credit, a passport benefit aimed at providing extra support for low-income pensioner households, will also go up by 4.1 per cent, pushing the average annual award to over £4,000. Over 760,000 pensioners are eligible for this gateway benefit and not claiming it.

It's worth noting that an award of just £1 per week is enough to qualify for annual Winter Fuel Payments, according to the Daily Record, reports the Manchester Evening News.

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The weekly earnings threshold for those receiving Carer's Allowance is set to rise from £151 per week to £196, equivalent to 16 hours at the National Minimum Wage. Chancellor Rachel Reeves also announced that deductions from Universal Credit payments will be cut from 25 per cent to 15 per cent.

New DWP and HMRC payment rates for 2025/26.

Estimates have been made for the new payment rates using the relevant uprating figure and the UK Government's rounding policy. It's crucial to remember that these figures may change.

Weekly rates are displayed unless otherwise stated and are listed in alphabetical order for easy reference.

Attendance Allowance

  • Higher rate: £110.40 (from £108.55)
  • Lower rate: £73.90 (from £72.65)

Carer's Allowance

  • April 2025 rate: £83.30 (from £81.90)
  • Weekly earnings threshold: £196.00 (from £151)

Child Benefit

  • Eldest or only child: £26.05 (from £25.60)
  • Additional children: £17.25 (from £16.95)

Disability Living Allowance / Child Disability Payment

Care Component

  • Highest: £110.40 (from £108.55)
  • Middle: £73.90 (from £72.65)
  • Lowest: £29.20 (from £28.70)

Mobility component

  • Higher: £77.05 (from £75.75)
  • Lower: £29.20 (from £28.70)

Employment and Support Allowance (ESA)

  • Single, under 25: £72.90 (from £71.70)
  • Single, 25 or over: £92.05 (from £90.50)
  • Lone parent, under 18: £72.90 (from £71.70)
  • Lone parent, over 18: £92.05 (from £90.50)
  • Couple, both under 18: £72.90 from (71.70)
  • Couple, both under 18 with child: £110.15 (from £108.30)
  • Couple, both under 18 (main phase): £92.05 (from £90.50)
  • Couple, both under 18 with child (main phase): £144.70 (from £142.30)
  • Couple, both over 18: £144.65 (from £142.25)

Guardian's Allowance

  • From April 2025: £22.10 (from £21.75)

Incapacity Benefit

  • Long-term Incapacity Benefit: £141.25 (from £138.90)

Short-term Incapacity Benefit (under State Pension age)

  • Lower rate: £106.65 (from £104.85)
  • Higher rate: £126.10 (from £124.00)

Short-term Incapacity Benefit (over State Pension age)

  • Lower rate: £135.50 (from £133.25)
  • Higher rate: £141.25 (from £138.90)

Increase of Long-term Incapacity Benefit for age

  • Lower rate: £8.30 (from £8.15)
  • Higher rate £14.95 (from £14.70)

Invalidity Allowance (Transitional)

  • Higher rate: £14.95 (from £14.70)
  • Middle rate: £8.30 (from £8.15
  • Lower rate: £8.30 (from £8.15)

Income Support

  • Single, under 25: £72.90 (from £71.70)
  • Single, 25 or over: £92.05 (from £90.50)
  • Lone parent, under 18: £72.90 (from £71.70)
  • Lone parent, 18 or over: £92.05 (from £90.50)
  • Couple, both under 18: £72.90 (from £71.70)
  • Couple, both under 18 - higher rate: £110.15 (from £108.30)
  • Couple, one under 18, one under 25: £72.90 (from £71.70)
  • Couple, one under 18, one 25 and over: £92.05 (from £90.50)
  • Couple, both 18 or over: £144.65 (from £142.25)

Jobseeker’s Allowance (JSA)

Contribution based JSA

  • Under 25: £72.90 (from £71.70)
  • 25 or over: £92.05 (from £90.50)

Income-based JSA

  • Under 25: £72.90 (from £71.70)
  • 25 or over: £92.05 (from £90.50)

Lone parent

  • Under 18: £72.90 (from £71.70)
  • 18 or over: £92.05 (from £90.50)
  • Couple, both under 18: £72.90 (from £71.70)
  • Couple, both under 18 - higher rate: £110.15 (from £108.30)
  • Couple, one under 18, one under 25: £72.90 (from £71.70)
  • Couple, one under 18, one 25 and over: £92.05 (from £90.50)
  • Couple, both 18 or over: £ (from £142.25)

Limited Capability for Work and Work-Related Activity

  • Amount from April 2025: £423.26 (from £416.19)
  • Carer amount: £201.68 (from £198.31)

Pension Credit

Standard minimum guarantee

  • Single: £227.10 (from £218.15)
  • Couple: £346.60 (from £332.95)

Additional amount for severe disability

  • Single: £82.90 (from £81.50)
  • Couple (one qualifies): £82.90 (from £81.50)
  • Couple (both qualify): £165.75 (from £163.00)

Personal Independence Payment (PIP) / Adult Disability Payment

Daily Living Component

  • Enhanced: £110.40 (from £108.55)
  • Standard: £73.90 (from £72.65)

Mobility Component

  • Enhanced: £77.05 (from £75.75)
  • Standard: £29.20 (from £28.70)

State Pension

New State Pension

  • Full rate: £230.25 (from £221.20)

Old/Basic State Pension

  • Category A or B Basic State Pension: £176.45 (from £169.50)
  • Category B (lower) Basic State Pension - spouse or civil
  • Partner's insurance: £103.30 (from £101.55)
  • Category C or D - non-contributory: £103.30 (from £101.55)

Universal Credit (monthly rates)

Single

  • Under 25: £316.93 (from £311.63)
  • 25 or over: £400.14 (from £393.45)

Couples

  • Joint claimants both under 25: £497.39 (from £489.23)
  • Joint claimants, one or both 25 or over: £628.10 (from £617.60)

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