The government has announced benefits are increasing by 1.7% and pensioner benefits (Pension Credit and Retirement Pension) by 4.1% from April 2025.
Inflation-linked benefits and tax credits will rise by 1.7% from April 2025, in line with the Consumer Prices Index (CPI) rate of inflation in September 2024.
The basic and new State Pensions will be uprated by 4.1% from April 2025, in line with the annual increase in the Average Weekly Earnings (AWE) index for May–July 2024.
The basic and new State Pensions will be uprated by 4.1% from April 2025, in line with the annual increase in the Average Weekly Earnings (AWE) index for May–July 2024.
Due to the increase in line with CPI, in 2025/26 Universal Credit standard allowances will increase:
From £311.68 to £316.98 per month for single people aged under 25
From £393.45 to £400.14 per month for single people aged 25 and over
From £489.23 to £497.55 per month for joint claimants both aged under 25
From £617.60 to £628.10 per month for joint claimants both aged 25 and over
The full pension rates in 2025/26 will be:
£230.25 per week for the new State Pension (for those reaching State Pension age on or after 6 April 2016) – up from £221.20 in 2024/25.
£176.45 per week for the basic State Pension (the core amount in the old State Pension system) – up from £169.50 in 2024/25.
Read the full list of benefits and pension rates for 2025.