DWP confirms new 2025 payment rates for State Pension, PIP, Universal Credit and other benefits

dailyrecord.co.uk:

More than 20 million people receiving the State Pension or benefits from the Department for Work and Pensions (DWP) will see payment rates for the 2025/26 financial year increase from April 7, 2025.

The New and Basic State Pensions will increase by 4.1 per cent, under the earnings growth measure of the Triple Lock, while most working age and disability benefits are going up by the September Consumer Price Index (CPI) inflation rate figure of 1.7 per cent.Additional State Pension payments will also rise by the 1.7 per cent CPI figure.

Annual uprating letters are sent out to all claimants before the new payment rates start, letting people know about the changes - it’s important to keep this somewhere safe as it can often be used as proof of benefit entitlement when applying for other streams of financial support.Pension Credit, a passport benefit designed to provide additional support for low-income pensioner households, will also rise by 4.1 per cent, taking the average annual award to over £4,000.More than 760,000 pensioners are entitled to this gateway benefit and not claiming it and it’s important to be aware that an award of just £1 per week is enough to access annual Winter Fuel Payments.New claims made before December 21, 2025, which later turns out to be successful, will qualify for a backdated Winter Fuel Payment - full details here.People on Carer’s Allowance will see the weekly earnings threshold rise from £151 per week to £196, equivalent to 16 hours at the National Minimum Wage.Chancellor Rachel Reeves also announced that deductions from Universal Credit payments will drop from 25 per cent to 15 per cent.Claimants on devolved benefits in Scotland, such as Adult Disability Payment, Child Disability Payment,