The DWP typically updates the majority of benefit payment amounts annually to keep pace with inflation, usually at the start of the tax year in April.
Chancellor Rachel Reeves confirmed that benefits would rise by 1.7%, in line with the UK’s September inflation data, while state pension would increase by 4.1% according to the triple lock mechanism she ensured would remain in place.
These new rates will be effective from April 7, 2025, until April 6, 2026, when they are due for another update.
However, a significant number of benefit and state pension claimants won’t see an increase on April 7 next year. This is because the Department for Work and Pensions pays most benefits, including state pension, in arrears.
The delay in payment heavily depends on the type of benefit you are receiving. The new state pension, set to rise by around £475 per annum, is usually paid about four weeks in arrears meaning pensioners likely won’t see the extra £9 a week in their account until May.
Similarly, it usually takes around five weeks to receive your first Universal Credit payment and it’s paid monthly from then onwards.
This year, due to a certain mechanism, some Universal Credit claimants didn’t see the rise implemented on their payments until June.
This ‘delay’ also extends to devolved benefits in Scotland such as Adult Disability Payment, Child Disability Payment, Carer Support Payment and Pension Age Disability Payment, all of which are also set to increase by 1.7%.
The DWP has confirmed all of the weekly or monthly rate changes for each individual benefit, and their additional premiums, which can be viewed on the Gov.uk website.
However, these aren’t the only changes impacting the benefits system next April, as the Tax Credit service is also set to close on April 5.
All remaining accounts on the service will be closed after the managed migration over the past few years has seen the majority of claimants transition to Universal Credit.
