The Department for Work and Pensions (DWP) will increase several benefits for families in 2025, with payments rising in line with inflation or wage growth.
The Department for Work and Pensions ( DWP ) is set to increase several benefits for families in 2025, with additional funds reaching bank accounts within a few months. Households receiving DWP and HMRC benefits or pensions will experience payment increases starting in April 2025 , aligning with either the inflation rate or the rate of wage growth . The precise timing and magnitude of these benefit increases remain to be fully determined.
Benefits like Universal Credit typically rise annually in line with inflation, which stood at 1.7% in September 2024. Consequently, both DWP and HMRC benefits are projected to rise by 1.7% in April 2025. However, the State Pension operates differently, protected by the 'triple-lock guarantee.' This guarantee ensures that the pension increases each year by the highest of three factors: inflation, average earnings, or 2.5%. Since wage growth surpasses the other two figures for 2024-2025, the State Pension, along with the guarantee credit element of Pension Credit, Widow's Pension, and Widower's Pension, will see a 4.1% increase in April. Benefit increases are scheduled to take effect at the start of the new tax year in April 2025. Most benefits will begin their increases on Monday, 7 April, as 6 April falls on a Sunday. A notable exception is Housing Benefit, which will increase on 1 April, coinciding with the start of the rent year
Benefits UK DWP HMRC Inflation Wage Growth State Pension Tax Year April 2025
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