The 2024 Budget brings some welcomed news for millions in the UK, as several benefits and the state pension will see an increase in line with inflation and wage growth.
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Here’s a breakdown of the key points and what they mean for you.
Which benefits are going up?
As part of the new Budget, several benefits overseen by the Department for Work and Pensions (DWP) will increase.
Most benefits will rise by the Consumer Price Index (CPI) rate of 1.7% from April. Here are the main benefits affected:
- Universal Credit
- Personal Independence Payment (PIP)
- Disability Living Allowance
- Attendance Allowance
- Incapacity Benefit
- Severe Disablement Allowance
- Industrial Injuries Benefit
- Carer’s Allowance
- Additional State Pension
- Guardian’s Allowance
These adjustments are legally required to keep up with inflation, helping recipients cope with the rising costs of living.
Universal credit: the most claimed benefit in the UK
Universal Credit is the UK’s most commonly claimed benefit, supporting over six million people. With this 1.7% increase, here’s how the new rates look:
- Single claimants under 25: Current monthly rate of £311.68 will rise to £316.98.
- Single claimants over 25: Current monthly rate of £393.45 will rise to £400.14.
- Joint claimants both under 25: Current monthly rate of £489.23 will rise to £497.55.
- Joint claimants over 25: Current monthly rate of £617.60 will rise to £628.10.
These increases may not be life-changing, but they’re designed to keep up with inflation and offer some added support to those relying on Universal Credit.
The triple lock promise and state pension increase
The state pension is set to increase by 4% due to the Triple Lock Promise.
This policy ensures that the state pension rises by the highest of three figures: the CPI, wage growth (measured from May to July), or a minimum of 2.5%.
For April 2025, the wage growth rate of 4.1% will drive the increase in the state pension. Here’s what that means:
- Old state pension: Rising from £169.50 per week to £176.28.
- New state pension: Rising from £221.20 per week to £230.05.
This increase should provide a noticeable boost to pensioners, helping them manage everyday costs in the face of rising expenses.
Why these increases matter
Benefit and pension increases are vital for many households across the UK.
While 1.7% may sound small, it’s a step towards supporting those who rely on these payments.
For pensioners, a 4% rise can provide a bit more breathing room to cover daily expenses.
This Budget has taken steps to adjust benefits and pensions in line with rising costs, offering a bit of extra help where it’s needed most.
Keep an eye on these changes, and if you’re receiving any of these benefits, look out for these increased amounts in your April 2025 payments.
Ricky Willis is the original Skint Dad. A money-making enthusiast, father, and husband to Naomi. He is always looking for unique ways to earn a little extra.
