Seven major changes to benefits are set to take effect from April as part of reforms introduced by the Department for Work and Pensions (DWP). Among these, benefits linked to inflation will increase by 1.7%, a rise that also applies to inflation-linked benefits managed by HMRC.
The Secretary of State for Work and Pensions conducts an annual review of benefits and state pensions. These updates are part of the Labour government’s broader plan to “overhaul the system in 2025.”
These changes are expected to be viewed as “largely a pay increase for claimants across the UK.”
Universal Credit to Replace Tax Credits
From 5 April, Tax Credits will be phased out and replaced by Universal Credit (UC). Those currently receiving Tax Credits will transition to UC by the end of the same month.
The standard allowance under Universal Credit will see a rise:
- Single individuals under 25: £311.68 → £316.98 per month
- Single individuals aged 25 and over: £393.45 → £400.14 per month
- Joint claimants under 25: £489.23 → £497.55 per month
- Joint claimants aged 25 and over: £617.60 → £628.10 per month
Adjustments for Limited Capability and Other Elements
Claimants with limited capability for work will also benefit from increases:
- Limited capability for work (LCW): £156.11 → £158.76 per month
- Limited capability for work and work-related activity (LCWRA): £416.19 → £423.27 per month
- Carer elements: £198.31 → £201.68 per month
Work allowances, the amount claimants can earn before benefits are reduced, will also rise:
- Higher rate: £673 → £684 per month
- Lower rate: £404 → £411 per month
For childcare, the cost element will increase to £1,031.88 per month for one child and £1,768.94 per month for two or more children.
Child Element Rates
For families, the child element of benefits will also increase:
- First child born before 6 April 2017: £333.33 → £339 per month
- First child born on or after 6 April 2017, and subsequent children: £287.92 → £292.81 per month
- Disabled children (lower rate): £156.11 → £158.76 per month
- Disabled children (higher rate): £487.58 → £495.87 per month
Attendance Allowance
For those over the state pension age who need assistance or supervision due to illness or disability, Attendance Allowance will increase:
- Lower rate: £72.65 → £73.90 per week
- Higher rate: £108.55 → £110.40 per week
Carer’s Allowance
Carers providing at least 35 hours of care per week for someone with an illness or disability may qualify for Carer’s Allowance, which will increase from £81.90 → to £83.30 per week.
Eligibility criteria include:
- Earning less than £151 per week (after deductions)
- The person cared for receiving a qualifying disability benefit
- Being aged 16 or over and not in full-time education
Disability Living Allowance (DLA)
Although Disability Living Allowance (DLA) is being replaced by Personal Independence Payment (PIP) for adults, it remains available for children under 16 in England and Wales. Scotland administers its own Child Disability Payment.
DLA care component rates will rise:
- Higher rate: £108.55 → £110.40 per week
- Middle rate: £72.65 → £73.90 per week
- Lower rate: £28.70 → £29.20 per week
For mobility, the higher rate will increase from £75.75 → £77.05 per week, and the lower rate will rise from £28.70 → £29.20 per week.
Personal Independence Payment (PIP)
Under Personal Independence Payment (PIP), rates for daily living and mobility components will also rise:
- Daily living (lower rate): £72.65 → £73.90 per week
- Daily living (higher rate): £108.55 → £110.40 per week
- Mobility (lower rate): £28.70 → £29.20 per week
- Mobility (higher rate): £75.75 → £77.05 per week
Pension Credit and State Pensions
The Pension Credit minimum guarantee will increase:
- Single claimants: £218.15 → £227.10 per week
- Couples: £332.95 → £347.65 per week
For the New State Pension, the full amount will rise from £221.20 → £230.25 per week, while the Basic State Pension will increase from £169.50 → £176.45 per week.
As the transition to Universal Credit progresses, claimants are encouraged to review their eligibility and ensure they understand the adjustments taking place.
Got a reaction? Share your thoughts in the comments
Enjoyed this article? Subscribe to our free Newsletter for captivating articles, exclusive content, and the latest news.
