The UK government has announced important increases in Universal Credit and disability benefits for 2025, providing vital financial support to millions facing rising living costs.
This article breaks down the details of how much more you can expect from benefits such as Universal Credit, Personal Independence Payment (PIP), Attendance Allowance, Carer’s Allowance, and the State Pension.
These increases reflect inflation adjustments to help ensure that benefits keep pace with the escalating costs of essential goods and services.
Overview of the 2025 Benefit Increases
The planned increase in Universal Credit and disability benefits for 2025 aims to ease the financial pressure on individuals.
However, with the high costs of living still affecting many, it’s important to understand the precise increase and how it impacts you financially.
Here’s a breakdown of the new rates:
| Benefit | 2024 Rate | 2025 Rate | Increase |
|---|---|---|---|
| Universal Credit | |||
| Single under 25 | £311.68 | £316.98 | £5.30 |
| Single 25 or over | £393.45 | £400.14 | £6.69 |
| Joint claimants (both under 25) | £489.23 | £497.55 | £8.32 |
| Joint claimants (one or both 25 or over) | £617.60 | £628.10 | £10.50 |
| Personal Independence Payment (PIP) | |||
| Daily living (standard) | £72.65 | £73.90 | £1.25 |
| Daily living (enhanced) | £108.55 | £110.40 | £1.85 |
| Mobility (standard) | £28.70 | £29.20 | £0.50 |
| Mobility (enhanced) | £75.75 | £77.05 | £1.30 |
| Attendance Allowance | |||
| Lower rate | £72.65 | £73.90 | £1.25 |
| Higher rate | £108.55 | £110.40 | £1.85 |
| Carer’s Allowance | £81.90 | £83.30 | £1.40 |
| State Pension | £221.20 | £230.25 | £9.05 |
For further official details, visit the UK government page: Benefit and Pension Rates 2025 to 2026.
Why Are Benefits Increasing?
Each year, the UK government adjusts benefit rates based on inflation and the cost of living. The Consumer Price Index (CPI), which measures inflation, recorded an increase of 1.7% in September 2024. This figure directly informs the 2025 benefit increases.
Despite these adjustments, many experts believe that the rise may not be sufficient to meet the actual costs that families and individuals face, particularly with high energy prices, rent increases, and food costs.
Charities and advocacy groups have called for more significant increases to help low-income families and individuals with disabilities maintain a reasonable standard of living.
Impact of the 2025 Universal Credit and Disability Benefits Increases
Universal Credit
For those receiving Universal Credit, the increase is modest but still beneficial. Here’s a quick summary:
- A single adult over 25 will see an increase of £6.69 per month.
- A couple (at least one person over 25) will receive an additional £10.50 per month.
Although this is a welcome increase, it falls short of offsetting the rising costs seen in previous years, leaving many recipients still struggling to make ends meet.
Personal Independence Payment (PIP)
PIP supports those with disabilities, covering essential living expenses. For 2025:
- The enhanced daily living rate will increase by £1.85 per week.
- The standard mobility rate will increase by just 50p per week.
These small increases may not be enough to fully cover the costs of rising healthcare and transportation needs, which are significant for many individuals with disabilities.
Carer’s Allowance & Attendance Allowance
Both Carer’s Allowance and Attendance Allowance will also see increases:
- Carer’s Allowance will rise by £1.40 per week, offering a bit more support to those providing unpaid care.
- Attendance Allowance, which helps those over State Pension age with severe disabilities, will increase by up to £1.85 per week.
While these adjustments are welcome, they may still fall short in covering the escalating costs of care.
How to Apply for Universal Credit and Disability Benefits
If you’re already receiving benefits, the new 2025 rates will be applied automatically to your payments starting in April 2025.
If you’re new to benefits or unsure about your eligibility, you can apply online or by phone:
- Universal Credit: Apply via gov.uk
- PIP: Check eligibility and apply here
- Carer’s Allowance: Apply here
Additional Support You Might Be Eligible For
In addition to the benefit increases, there are other types of support that may be available:
- Warm Home Discount: Receive £150 off your electricity bill. Apply here
- Council Tax Reduction: Low-income households may be eligible for a reduced council tax bill.
- Free Prescriptions & Eye Tests: If you’re on certain benefits, you may qualify for these essential services. Check eligibility.
Common Mistakes When Claiming Benefits
It’s essential to ensure you claim all the benefits you’re entitled to. Avoid these common mistakes:
- Not updating your information: Always inform the relevant authorities if your circumstances change. Failing to do so can lead to underpayments or overpayments.
- Missing deadlines: Benefit applications require supporting documents, and late submissions can delay your claim.
- Not checking for other benefits: Many individuals qualify for extra support without realizing it. Use the Turn2Us Benefits Calculator to find out what additional help you might be eligible for.
What’s Next for Benefits in 2026?
Looking ahead, the future of benefits in 2026 will largely depend on the UK economy and the inflation rate. If inflation continues to rise, there may be more significant increases to benefit rates. The government is also exploring potential reforms to Universal Credit, which could further impact the amount of support available.
While the 2025 Universal Credit and disability benefit increases provide much-needed support, many people may still find it challenging to manage rising living costs. It’s crucial to understand how much more you will be receiving and ensure you claim all the support you’re entitled to.
With the cost of living continuing to rise, there may be further benefit reforms or increases in the coming years. Stay informed and make sure to take advantage of all available assistance.
FAQs
How much will Universal Credit increase in 2025?
The increase in Universal Credit will vary depending on your circumstances. For example, a single adult over 25 will receive £6.69 more per month.
When will the new rates be applied?
The new benefit rates will be automatically applied to payments starting in April 2025.
Can I apply for benefits if I haven’t before?
Yes, you can apply for Universal Credit, PIP, Carer’s Allowance, and more through the official UK government website.
What additional benefits might I be eligible for?
You may qualify for additional support like the Warm Home Discount, Council Tax Reduction, or Free Prescriptions depending on your circumstances.