Most benefit rates are going up today as the new tax year begins – here is a full list of all the major benefits increasing and by how much
A number of different benefit rates officially increase today, Sunday April 6, as the new tax year begins. Benefit claimants will see an increase in their payments in line with inflation, but many of the new rates will actually come into effect from tomorrow – the first working day of the new tax year.
Most means-tested benefits such as Universal Credit, Personal Independence Payment (PIP), the State Pension and employment support allowance (ESA) will rise from the first Monday after the new tax year begins, so this year that date will be Monday, April 7.
Those on the State Pension who receive payments weekly or fortnightly may see the uplift sooner and other benefits may go up different dates depending on when they are usually paid.
Every year the Department for Work and Pensions’ rates go up in line with the inflation level from the previous September. This was confirmed as being 1.7% in September 2024, according to the consumer price index.
An exception to this rule is the State Pension which increases by whichever is highest out of inflation, wages based on average growth between May and July, or 2.5% – the triple lock promise. And this year it will rise by 4.1% in line with average earnings growth.
Benefit rates are generally increased annually in April, with the most of the new rates increasing on April 6 – the beginning of the new tax year. But not all go up in line with the new tax year – some changes come into effect on April 1 and some payment dates vary depending on an individuals ‘assessment period’.
Tax Credits – both working and child – would usually increase today, but they are being replaced by Universal Credit for all claimants this year.
The Department for Work and Pensions (DWP) or the Department for Communities (for Northern Ireland customers) will have written to all eligible customers during 2024 and informed them of the need to move to Universal Credit to continue to receive financial support.
Below is the full list of all the major welfare benefits going up today.
Universal Credit
Universal Credit (UC) is the benefit payment that people receive instead of the old legacy benefits. It currently replaces six legacy benefits, including Working Tax Credit, Child Tax Credit, Income Support, Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance and Housing Benefit. More six million people in the UK claim Universal Credit.
Payments for UC are increased at the start of the new tax year, however when claimants actually receive their new benefit rates may vary drastically depending on their assessment periods.
For most claimants, the increased rates will take effect around June, as the new rate won’t be paid until the first assessment period that begins on or after April 7.
The standard allowance – the basic amount you get before any additional payments or deductions are accounted for – is set to increase by:
- Single under 25: £311.68 a month to £316.98 a month
- Single 25 or over: £393.45 a month to £400.14 a month
- Joint claimants both under 25: £489.23 a month to £497.55 a month
- Joint claimants, one or both 25 or over: £617.60 a month to £628.10 a month
Some receive additional payments for factors such as dependent children or long-term illness.
Child element
- First child born before April 6, 2017: £333.33 a month to £339 a month
- First child born on or after April 6, 2017 or second child and subsequent child: £287.92 a month to £292.81 a month
- Disabled child element lower rate: £156.11 a month to £158.76 a month
- Disabled child higher rate: £487.58 a month to £495.87 a month
Limited capability for work
- Limited capability for work: £156.11 a month to £158.76 a month
- Limited capability for work or work-related activity: £416.19 a month to £423.27 a month
Carer element
- £198.31 a month to £201.68 a month
Work allowance
- Higher work allowance (no housing amount): £673 a month to £684 a month
- Lower work allowance (with housing amount): £404 a month to £411 a month
Childcare cost element
- Maximum for one child: £1,014.63 a month to £1,031.88 a month
- Maximum for two or more children: £1,739.37 a month to £1,768.94 a month
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Personal Independence Payment (PIP)
PIP is a benefit for adults of working age who have an illness, disability or mental health condition. It has a daily living rate component and a mobility rate component – you can be entitled to one of these or both depending on your situation.
Recently, the government undertook a major overhaul of the PIP eligibility criteria and scoring system which may affect some people’s claims in the future.
Daily living
- Lower rate: £72.65 a week to £73.90 a week
- Higher rate: £108.55 a week to £110.40 a week
Mobility
- Lower rate: £28.70 a week to £29.20 a week
- Higher rate: £75.75 a week to £77.05 a week
State Pension
Men born on or after April 6, 1951, and women born on or after April 6, 1953 are able to claim the new state pension. People born before these dates are only entitled to the basic state pension payments.
Because State Pension is paid weekly or fortnightly, certain claimants may have already seen the uplift in their payments.
- Full new state pension: £221.20 a week to £230.25 a week
- Full old basic state pension: £169.50 a week to £176.45 a week
Employment and Support Allowance (ESA)
ESA is paid to people who have a health condition or disability that limits your ability to work. There are two main types of ESA – New Style ESA and Income-based ESA, both are paid every two weeks.
To be eligible for New Style ESA, you generally need to have paid enough National Insurance contributions.
Payment rates of ESA vary depending on a variety of factors, including your age and relationship status. To see a full list of increases, click here. Below are all the the increases to Personal Allowances and Couple Allowances:
- Single under 25: £71.70 to £72.90
- Single 25 or over: £90.50 to £92.05
- Lone parent under 18: £71.70 to £72.90
- Lone parent 18 or over: £90.50 to £92.05
- A couple both under 18: £71.70 to £72.90
- A couple both under 18 with a child: £108.30 to £110.15
- A couple both under 18 (main phase): £90.50 to £92.05
- A couple both under 18 with child (main phase): £142.25 to £144.65
- A couple one 18 or over, one under 18 (certain conditions apply): £142.25 to £144.65
- A couple both over 18: £142.25 to £144.65
- Couple with claimant under 25, partner under 18: £71.70 to £72.90
- Couple with claimant 25 or over, partner under 18: £90.50 to £92.05
- Couple with claimant (main phase), partner under 18: £90.50 to £92.05
Child Benefit
Child benefit payments are made to parents or anyone looking after a child.
- First or eldest child: £25.60 a week to £26.05 a week
- Any additional child: £16.95 a week to £17.25 a week
Attendance Allowance
This is a benefit paid to people over the state pension age who need help or supervision with personal care due to illness or disability.
- The Lower Rate is increasing from £72.65 a week to £73.90 a week
- The Higher Rate is increasing from £108.55 a week £110.40 a week
Carer’s Allowance
This benefit is given to people who look after someone for 35 hours or more a week. You don’t have to live with or be related to the person you are caring for to be eligible.
- Carer’s Allowance is increasing from £81.90 a week to £83.30 a week
Disability Living Allowance
Disability Living Allowance (DLA) is being replaced by Personal Independence Payment (PIP) for those with a disability. You can only apply for DLA if you’re under 16 and you live in England or Wales. Those who live in Scotland can apply for Child Disability Payment.
DLA care component rates will increase as follows:
- The highest rate: £108.55 a week to £110.40 a week
- The middle rate from £72.65 a week to £73.90 a week
- The lowest rate from £28.70 a week to £29.20 a week
DLA mobility component rates will increase as follows:
- The higher rate: £75.75 a week to £77.05 a week
- The lower rate: £28.70 a week to £29.20 a week
Pension Credit
Pension credit tops up the income of people over state pension age. Recipients can also access other things, such as as council tax discounts and free TV licences for over-75s. There are also additional elements available if you’re a carer, you’re disabled, you look after children, or if you have savings and reached state pension age before April 2016.
Standard minimum guarantee
- Single: £218.15 a week to £227.10 a week
- Couple: £332.95 a week to £346.60 a week
Guardian’s Allowance
You could get Guardian’s Allowance if you’re bringing up a child whose parents have died. You may also be eligible if there’s one surviving parent.
The money you receive from Guardian’s Allowance is paid on top of Child Benefit and is tax-free.
- The Guardian’s Allowance rate is increasing from £21.75 a week to £22.10 a week
For a full list of all other benefits increasing and by how much, visit the gov.uk website.
