In April 2025, changes to benefits, state pensions, and the minimum wage will impact millions across the UK. While some households stand to benefit from these increases, others may face challenges as costs rise.
The financial landscape is shifting, with a mix of support and cuts to the welfare system. Independent sources highlight key dates and adjustments that recipients should be aware of, but many are left wondering how these changes will affect their financial situation in the months ahead.
What will be changing in April?
Several key financial updates are set for April, bringing both positives and challenges. The Department for Work and Pensions (DWP) has confirmed that all benefits will be uprated by 1.7%, in line with the inflation rate of September 2024.
This increase includes Universal Credit, Disability Living Allowance (DLA), Personal Independence Payment (PIP), Carer’s Allowance, and more. In addition, the State Pension will rise by 4.1% under the triple lock, which equates to an annual increase of £472.
The minimum wage will also see a significant rise of 6.7%, resulting in a pay boost of up to £1,400 for millions of workers. This is welcome news for those in low-wage sectors, though the rise in wages will not fully offset the rising costs in everyday life.
Joseph Rowntree Foundation poverty statistic
However, many are still struggling financially. Latest research from the Joseph Rowntree Foundation revealed that over 1 in 5 people in the UK (21%) were in poverty in 2022/23, totaling 14.3 million people.
This included 8.1 million working-age adults, 4.3 million children, and 1.9 million pensioners. This stark figure highlights the ongoing challenges faced by low-income households even as some financial support increases.
Labour’s welfare changes: £5 million cuts
The positive outlook, however, is tempered by Labour’s recently announced welfare cuts, which could affect many households. With a £5 million reduction in welfare spending, new changes will impact those relying on Universal Credit and Personal Independence Payment (PIP).
Starting from April 2026, Universal Credit claimants will see a £7 weekly rise in their standard allowance, though the health element will be frozen at £97. For new claimants, the health element of Universal Credit will be reduced to £50 a week, a significant cut from the current level.
Benefit payment dates in April
Most benefit payments will go out as usual in April, but there are a few exceptions due to the bank holidays around Easter. Those expecting payments on 18 April (Good Friday) or 21 April (Easter Monday) will instead receive their benefits on Thursday, 17 April.
Key benefit payments include:
- Universal Credit
- State Pension
- Pension Credit
- Child Benefit
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Attendance Allowance
- Carer’s Allowance
- Employment Support Allowance (ESA)
- Income Support
- Jobseeker’s Allowance (JSA)
Pension payment dates in April
State pension payments will be made based on the last two digits of your National Insurance (NI) number, which determines the exact day you will receive your pension. Here’s a breakdown of when you can expect your pension payment:
- 00 to 19: Monday
- 20 to 39: Tuesday
- 40 to 59: Wednesday
- 60 to 79: Thursday
- 80 to 99: Friday
Additional financial support in April
For those struggling financially, there are several forms of additional support available in April. Universal Credit claimants facing emergencies can apply for a Budgeting Advance Loan, which can help cover urgent costs. This loan is interest-free, and deductions are automatically made from your Universal Credit payments over two years.
Charitable grants are also available for individuals in need, especially for those who are ill, disabled, or facing financial hardship. Various energy providers are offering assistance to those struggling with energy bills, and British Gas offers grants of up to £2,000 to customers, regardless of their energy supplier.
Local councils may also offer council tax reductions for those on certain benefits, with some providing up to 100% off, depending on individual circumstances.
Unclaimed benefits
A report from Policy in Practice reveals that nearly £23 billion in benefits goes unclaimed every year. If you think you may be entitled to support, you can use an online calculator to check your eligibility for various benefits.
Energy costs are set to rise again in April, with Ofgem’s energy price cap increasing by 6.4%, from £1,738 to £1,849 for the period from April to June. This marks the third consecutive rise in the cap and is expected to add an average of £9.25 to monthly energy bills for most households.
Mental health support
For those struggling with mental health issues during this difficult economic period, there are various support services available. Organizations like Samaritans, Mind, and Scope offer confidential and supportive services to help individuals navigate their emotional and mental health challenges. The NHS also provides an online mental health triage service for those seeking help.
Free childcare expansions
From 1 September 2025, all children under the age of five will be eligible for 30 hours of free childcare. This expands on the current entitlement for children aged three to four years old, which has already been extended to include 15 hours of free childcare for two-year-olds from April 1, 2025.
For working parents, the government also offers tax-free childcare, which provides a 20p return for every 80p you contribute towards childcare costs, up to a maximum of £500 a year.
