The Department for Work and Pensions (DWP) has announced plans to increase Universal Credit and Personal Independence Payment (PIP) benefits by 1.7% in April 2025.
This adjustment follows the September 2024 inflation rate, which will serve as the basis for the annual uprating of several welfare benefits.
The official confirmation of these changes will be made by Chancellor Rachel Reeves in the Autumn Budget on October 30, 2024.
Here’s a breakdown of the expected changes and how they will impact claimants.
Benefit Increases Overview
The 1.7% increase reflects the government’s commitment to keeping benefits in line with inflation.
By linking the rise in benefits to inflation rates, the DWP aims to protect the purchasing power of low-income families and individuals with disabilities or long-term health conditions who rely on welfare support.
| Year | Percentage Increase | Inflation Rate Applied |
|---|---|---|
| 2023 | 10.1% | Double-digit inflation |
| 2024 | 6.7% | Moderate inflation |
| 2025 | 1.7% | Current inflation |
Universal Credit Increase for 2025
Universal Credit will see a 1.7% rise in April 2025. Here are the estimated new amounts:
| Type of Allowance | Current Amount | Expected Increase | New Amount |
|---|---|---|---|
| Single (25 and over) | £368.74 | £6.28 | £375.02 |
| Joint Claimants (Both 25 and over) | £578.82 | £9.83 | £588.65 |
Personal Independence Payment (PIP) Increase for 2025
PIP, which provides financial assistance to those with disabilities, will also rise by 1.7%. Below are the expected new rates for the Daily Living and Mobility components:
| Component | Rate Type | Current Amount | Expected Increase | New Amount |
|---|---|---|---|---|
| Daily Living | Standard Rate | £68.10 | £1.16 | £69.26 |
| Enhanced Rate | £101.75 | £1.73 | £103.48 | |
| Mobility | Standard Rate | £26.90 | £0.46 | £27.36 |
| Enhanced Rate | £71.00 | £1.21 | £72.21 |
Impact on Claimants
While the 1.7% increase provides some relief, it may not fully counterbalance the rising cost of living. However, this increase will offer some additional income to help households manage essential costs, such as food, housing, and energy bills.
| Benefit Type | Estimated Monthly Increase |
|---|---|
| Universal Credit | £6.28 to £9.83 |
| PIP (Daily Living) | £1.16 to £1.73 |
| PIP (Mobility) | £0.46 to £1.21 |
The planned 1.7% increase in Universal Credit and PIP is part of the DWP’s ongoing effort to ensure benefit payments remain in line with inflation, helping to ease the financial burden on low-income households.
Though this increase offers some relief, the rising cost of living continues to challenge many benefit recipients. The DWP remains committed to adjusting benefits annually based on economic conditions, ensuring that vulnerable groups are supported.
FAQs
When will the benefit increases take effect?
The increases will take effect in April 2025.
How much will Universal Credit increase in 2025?
Universal Credit payments will increase by 1.7%, with single claimants (25+) receiving an additional £6.28 per month.
What is the new rate for PIP Daily Living Enhanced in 2025?
The PIP Daily Living Enhanced Rate will increase to £103.48 per month.
Why are benefits linked to inflation?
Linking benefits to inflation ensures they keep pace with the rising cost of living, helping claimants maintain their purchasing power.
When will the changes be officially confirmed?
The changes will be confirmed in the Autumn Budget on October 30, 2024, by Chancellor Rachel Reeves.
