Shortly after the Autumn Budget on October 30, the Secretary of State for Work and Pensions confirmed that the New and Basic State Pension will rise by 4.1 per cent from next April. Liz Kendall also confirmed that additional State Pension elements, working age and disability benefits will increase by 1.7 per cent.
This includes Universal Credit, Personal Independence Payment (PIP), Disability Living Allowance (DLA), Attendance Allowance and Carer’s Allowance. HM Revenue and Customs (HMRC) have also confirmed the new weekly payment rates for Child Benefit and Guardian’s Allowance.
It’s important to be aware there will be no need for changes to Tax Credits rates for the 2025/26 financial year as there will be no Tax Credits awards after April 5, 2025 as a result of Managed Migration to Universal Credit and the Department for Work and Pensions (DWP) IT system.
The Pension Credit earnings threshold will also rise by 4.1 per cent from the current £11,400 to £11,850 next April. This increase takes into account the State Pension uprating which could see those on the full, New State Pension receive an uplift of around £470 over the 2025/26 financial year.
The annual uprating for devolved benefits such as Adult Disability Payment (ADP), Child Disability Payment, Pension Age Disability Payment (PADP) and Carer Support Payment will be determined by the Scottish Government during next month’s Budget.
Payment rates are expected to rise in-line with the DWP to prevent a two-tier benefits system, however, it’s unclear if the increase to the Carer’s Allowance earnings threshold will also be applied north of the border to Carer Support Payment.
State Pension and benefit payment rates 2025/16
The full list of new State Pension and benefit payment rates from both the DWP and HMRC will be published soon, but it’s possible to calculate some of these now by applying the increase and the UK Government rounding policy.
Full New State Pension
- Weekly payment: £230.25 (from £221..20)
- Four-weekly payment: £921 (from £884.80)
- Annual amount: £11,973 (from £11,502)
Full Basic State Pension
- Weekly payment: £176.45 (from £169.50)
- Four-weekly payment: £705.80 (from £678)
- Annual amount: £9,175 (from £8,814)
Disability benefits
A successful claim for PIP or ADP is currently worth between £28.70 and £184.30 each week in additional financial support and as the benefit is paid every four weeks – resulting in 13 payments over the course of a year instead of 12 – this amounts to between £114.80 and £737.20 every payment period.
An uprating of 1.7 per cent will see people on disability benefits receive between £29.20 and £187.45 each week, some £116.80 or £749.80 every four-week pay period.
It’s important to be aware the highest figure of £749.80 is based on someone receiving the highest award for both the daily living and mobility components.
PIP, Adult Disability Payment, Child Disability Payment and DLA
The Scottish Government will confirm the uprating for devolved benefits during the Budget next month.
Estimated weekly rates are shown for all benefits, most are paid every four weeks so to calculate your own uplift simply look for your award rate and multiply by four.
Daily living component
- Lower care award (CDP, DLA only): £29.20 (from £28.70)
- Standard: £73.90 (from £72.65)
- Enhanced: £110.40 (from £108.55)
Mobility component
- Standard: £29.20 (from £28.70)
- Enhanced: £77.05 (from £75.75)
Attendance Allowance
Attendance Allowance does not include a mobility component.
- Lower rate: £73.90 (from £72.65)
- Higher rate: £110.40 (from £108.55)
Carer’s Allowance
As already mentioned, the Scottish Government will confirm the uprating for devolved benefits during the Budget next month, this will include Carer Support Payment and the weekly earnings threshold.
- Weekly payment rate: £83.30 (from £81.90)
- Four-week pay period: £333.20 £from £327.60)
- Earnings threshold: £196 (from £151)
Universal Credit
- Single, aged 25 and over: £400.14 (from £393.45)
- Couples, aged 25 and over: £1,213.72 (from £1,193.44)
Child Benefit
- Eldest child: £26.05 (from £25.60)
- Additional children: £17.25 (from £16.95)
Guardian’s Allowance
- Weekly payment: £22.10 (from £21.75)
We will update this article once the DWP and HMRC have published the full list of new payment rates, which is due in the next few weeks.