DWP Benefits Increase 2025: What Changes Mean for UK Households. The government has announced changes in DWP benefits for 2025. The DWP has declared Universal Credit will increase by 1.7% in April 2025. This increase will provide financial assistance to eligible individuals to cope with inflation and the rising cost of living. The basic and new state pension will be uprated by 4.1% from April 2025. If you’d like to know more about the topic DWP Benefits Increase 2025: What Changes Mean for UK Households, please keep reading the article.
DWP Benefits Increase 2025
The Department of Work and Pension has announced the increase in DWP benefits by 1.7 percent as the state pension rises by 4.1 percent in line with the triple lock. This increase is aimed at the welfare of people by providing them financial assistance to pace with inflation and the rising cost of living. This increased payment will help eligible citizens with necessities, such as groceries, energy bills, and rent.
On 5th February, the minister for Social Security and Disability, Sie Stephen Timms MP (Lab, East Ham), gave a statement on the draft Social Security Benefits Up-rating Order 2025, which was approved.
- The draft Social Security Benefits Up-rating Order 2025 will increase relevant state pension rates by 4.1%, in line with the growth in average earnings in the year from May to July 2024.
- It will increase most other benefit rates by 1.7, in line with the rise in the consumer price index in the year to September 2024.
- The government’s commitment to the triple lock means that the basic and full rate of the new state pension will be uprated by whichever is highest out of the growth in earnings, the growth in prices, or 2.5%.
- This will rise to 4.1% for 2025–26.
- 169£ From April this year, the basic state pension will increase from £169.50 per week to £176.45, and the full rate of the new state pension will increase from £221.20 to £230.25.
- The government is fully committed to maintaining the pension triple lock.
Increased Payment Amount
Universal Credit
Universal Credit is a monthly payment designed to help individuals and families with their living costs. It replaces six older benefits:
- Jobseeker’s Allowance (JSA)
- Income Support
- Working Tax Credit
- Child Tax Credit
- Housing Benefit
- Employment and Support Allowance (ESA)
Universal Credit (UC) Monthly Rates
| Category | Previous Amount 24-25 | Net Amount (April 2025) |
| UC Amounts—Standard Allowance | ||
| Single under 25 | £311.68 | £316.98 |
| Single 25 or over | £393.45 | £400.14 |
| Couple-joint claimants both under 25 | £489.23 | £497.55 |
| Couple-joint claimants, one or both 25 or over | £617.60 | £628.10 |
| Child Amounts | ||
| First child (born before 6 April 2017) | £333.33 | £339.00 |
| First child (born on or after 6 April 2017)/second child and subsequent child (where an exception or transitional provision applies) | £287.92 | £292.81 |
| Disabled Child Additions | ||
| Lower rate addition | £156.11 | £158.76 |
| Higher rate addition | £487.58 | £495.87 |
| Limited Capability for work amount | £156.11 | £158.76 |
| Limited Capability for work and work-related activity amount | £416.19 | £423.27 |
| Carer amount | £198.31 | £201.68 |
| Childcare Costs Amount | ||
| Maximum for one child | £1014.63 | £1031.88 |
| Maximum for two or more children | £1739.37 | £1768.94 |
| Non-dependants’ housing cost contributions | £91.47 | £93.02 |
| Work Allowances | ||
| Higher work allowance (no housing amount)- one or more dependent children or limited capability for work | £673.00 | £684.00 |
| Lower work allowance—one or more dependent children or limited capability for work | £404.00 | £411.00 |
| UC Daily Reduction 100% reduction rate | ||
| Single under 25 | £10.20 | £10.40 |
| Single 25 or over | £12.90 | £13.10 |
| Couple-joint claimants both under 25 (per sanctioned claimant) | £8.00 | £8.10 |
| Couple-joint claimants, one or both 25 or over, and one is sanctioned (per sanctioned claimant) | £10.10 | £10.30 |
| 40% Reduction Rate | ||
| Single under 25 | £4.00 | £4.10 |
| Single 25 or over | £5.10 | £5.20 |
| Couple-joint claimants both under 25 (per sanctioned claimant) | £3.20 | £3.20 |
| Couple-joint claimants, one or both 25 or over, and one is sanctioned (per sanctioned claimant) | £4.00 | £4.10 |
| Capital limit-Universal Credit | ||
| Upper limit | £16000.00 | £16000.00 |
| Amount disregarded | £6000.00 | £6000.00 |
| Assumed income from the capital for every £259 or part thereof, between capital disregard and upper capital limit | £4.35 | £4.35 |
The DWP is aiming to complete the migration of all ‘legacy benefits’ to Universal Credit by January 26. Individuals receiving tax credits, income support, jobseeker’s allowance, and housing benefits should have received a notice about moving to Universal Credit already. Those claiming employment support allowance only, or housing benefit, should receive a notice like this by December 2025.
FAQs
How can I apply for the Universal credit increase?
You need not apply for the Universal Credit increase if you are already receiving it. The increased amount will be deposited directly into your bank account.
Has the schedule for the distribution of increased payments been declared?
The increased payments will be distributed in April 2025, but the exact dates will depend on your payment cycle.
Can I work while claiming Universal Credit?
Yes, but how much you charge will depend on your earnings. The work allowance allows you to earn a specific amount before Universal Credit starts reducing.