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

Nearly 20 million people in receipt of the State Pension or benefits from the Department for Work and Pensions (DWP) will see payment rates for the 2024/25 financial year increase from today (April 8). State pensions are increasing by 8.5 per cent, as per the Triple Lock policy, while most working age and disability benefits are going up by the September Consumer Price Index (CPI) inflation rate figure of 6.7 per cent.

Additional State Pension payments will also rise by the 6.7 per cent CPI figure. Annual uprating letters are currently being sent out 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 to provide additional support for low-income pensioner households, will also see a significant rise, with the average award worth over £3,900.

Commenting on the uprating, Secretary of State for Work and Pensions, Mel Stride MP said: “Thanks to the Triple Lock and our efforts to drive down inflation, we are putting money back in the pockets of pensioners. This is only possible because we have stuck to our plan and our economy has turned a corner.

“This will make a meaningful difference to all those who rely on the State Pension and ensure we continue to provide a safety net for those who need it most while making work pay wherever possible.”

Minister for Pensions, Paul Maynard MP said: “It’s only right that after a lifetime of work that we protect our pensioners’ incomes. Our sustained commitment to the Triple Lock demonstrates our determination to continue to combat pensioner poverty, and to ensure that the State Pension will continue to provide the foundation of income in retirement so many need.”

Scottish Secretary Alister Jack said: "The UK Government's decision to increase the State Pension by 8.5 percent will make a meaningful difference to over a million pensioners across Scotland. With inflation continuing to fall and our commitment to the Triple Lock, pensioners in Scotland will see more cash in their pocket."

The 6.7 per cent increase will be applied to Universal Credit, Personal Independence Payment (PIP), Carer’s Allowance, Disability Living Allowance (DLA) and Employment and Support Allowance (ESA). The DWP said that in cash terms this means an additional £470 for the 5.5 million households on Universal Credit with over 19 million families across Great Britain benefiting from the annual uprating.

Minister for Employment, Jo Churchill MP, said: “We are continuing to protect those in need through boosting benefits by 6.7 per cent and providing the largest cost of living support package in Europe.

“The welfare system will always be there for people who need it, but work is the best way to secure long-term financial security and our £2.5 billion Back to Work Plan will help even more people secure employment. At the same time we are making work pay through generous tax cuts and the rise in the National Living Wage.”

The DWP said the UK Government’s drive to support the most vulnerable has helped reduce absolute poverty by 1.1 million individuals compared to 2010 with over 200,000 State Pensioners being lifted out of poverty since 2010 after housing costs are taken into account.

State Pension and benefit payment rates from April 8

Weekly rates are shown, unless otherwise stated and have been listed in alphabetical order to make it easier to find the payment relevant to your own situation.

A full list of the increases along with the Benefits Caps, earnings thresholds and Housing Benefits allowances, can be found on GOV.UK here.

Attendance Allowance

• Higher rate: £108.55 (from £101.75)
• Lower rate: £72.65 (from £68.10)

Carer’s Allowance

• April 2024 rate: £81.90 (from £76.75)
• Earnings threshold: £151.00 (from £139.00)

Disability Living Allowance / Child Disability Payment

Care Component

• Highest: £108.55 (from £101.75)
• Middle: £72.65 (from £68.10)
• Lowest: £28.70 (from £26.90)

Mobility component

• Higher: £75.75 (from £71.00)
• Lower: £28.70 (from £26.90)

Employment and Support Allowance (ESA)

Single

• Single, under 25: £71.70 (from £67.20)
• Single, 25 or over: £90.50 (from £84.80)
• Lone parent, under 18: £71.70 (from £67.20)
• Lone parent, over 18: £90.50 (from £80.50)

Couple

• Both under 18: £71.70 from (67.20)
• Both under 18 with child: £108.30 (from £101.50)
• Both under 18 (main phase): £90.50 (from £84.80)
• Both under 18 with child (main phase): £142.30 (from £133.30)
• Both over 18: £142.25 (from £133.30)

Full details on amounts for mixed age households and premiums can be found on GOV.UK here.

Incapacity Benefit

• Long-term Incapacity Benefit: £138.90 (from £130.20)
• Short-term Incapacity Benefit (under State Pension age)
• Lower rate: £104.85 (from £98.25)
• Higher rate: £124.00 (from £116.20)

Short-term Incapacity Benefit (over State Pension age)

• Lower rate: £133.25 (from £124.90)
• Higher rate: £138.90 (from £130.20)

Increase of Long-term Incapacity Benefit for age

• Lower rate: £8.15 (from £7.65)
• Higher rate £14.70 (from £13.80)

Invalidity Allowance (Transitional)

• Higher rate: £14.70 (from £13.80)
• Middle rate: £8.15 (from £7.65)
• Lower rate: £8.15 (from £7.65)

Income Support

Single

• Single, under 25: £71.70 (from £67.20)
• Single, 25 or over: £90.50 (from £84.80)
• Lone parent, under 18: £71.70 (from £67.20)
• Lone parent, 18 or over: £90.50 (from £84.80)

Couple

• Both under 18: £71.70 (from £67.20)
• Both under 18 - higher rate: £108.30 (from £101.50)
• One under 18, one under 25: £71.70 (from £67.20)
• One under 18, one 25 and over: £90.50 (from £84.80)
• Both 18 or over: £142.25 (from £133.30)
• Dependent children: £83.24 (from £77.78)

Full details on additional premiums by age and household circumstances can be found on GOV.UK here.

Jobseeker’s Allowance (JSA)

Contribution based JSA

• Under 25: £71.70 (from £67.20)
• 25 or over: £90.50 (from £84.80)

Income-based JSA

• Under 25: £71.70 (from £67.20)
• 25 or over: £90.50 (from £84.80)

Lone parent

• Under 18: £71.70 (from £67.20)
• 18 or over: £90.50 (from £84.80)

Couples

• Both under 18: £71.70 (from £67.20)
• Both under 18 - higher rate: £108.30 (from £101.50)
• One under 18, one under 25: £71.70 (from £67.20)
• One under 18, one 25 and over: £90.50 (from £84.80)
• Both 18 or over: £142.25 (from £133.30)
• Dependent children: £83.24 (from £77.78)

Full details on amounts for mixed age households and premiums can be found on GOV.UK here.

Maternity Allowance

• Standard rate: £184.03 (from £172.48)

Pension Credit

Standard minimum guarantee

• Single: £218.15 (from £201.05)
• Couple: £332.95 (from £306.85)

Additional amount for severe disability

• Single: £81.50 (from £76.40)
• Couple (one qualifies): £81.50 (from £76.40)
• Couple (both qualify): £163.00 (from £152.80)

Full details on additional payments for carers, children and savings credit can be found on GOV.UK here.

Personal Independence Payment (PIP) / Adult Disability Payment

Daily Living Component

• Enhanced: £108.55 (from £101.75)
• Standard: £72.65 (from £68.10)

Mobility Component

• Enhanced: £75.75 (from £71.00)
• Standard: £28.70 (from £26,90)

Severe Disablement Allowance

• Basic rate: £98.40 (from £92.20)
• Age-related addition (from Dec 90)
• Higher rate: £14.70 (from £13.80)
• Middle rate: ££8.15 (from £7.65)
• Lower rate: £8.15 (from £7.65)

State Pension

New State Pension

• Full rate: £221.20 (from £203.85)

Old/Basic State Pension

• Category A or B Basic State Pension: £169.50 (from £156.20)

Category B (lower) Basic State Pension - spouse or civil

• Partner's insurance: £101.55 (from £93.60)
• Category C or D - non-contributory: £101.55 (from £93.60)

Full details on Additional State Pension, increments and Invalidity Allowance can be found on GOV.UK here.

Statutory Adoption Pay

• Earnings threshold: no change, £123.00
• Standard Rate: £184.03 (from £172.48)

Statutory Maternity Pay

• Earnings threshold: no change, £123.00
• Standard Rate: £184.03 (from £172.48)

Statutory Paternity Pay

• Earnings threshold: no change, £123.00
• Standard Rate: £184.03 (from £172.48)

Statutory Sick Pay

• Earnings threshold: no change, £123.00
• Standard rate: £116.75 (from £109.40)

Universal Credit (monthly rates)

Single

• Under 25: £311.68 (from £292.11)
• 25 or over: £393.45 (from £368.74)

Couples

• Joint claimants both under 25: £489.23 (from £458.51)
• Joint claimants, one or both 25 or over: £617.60 (from £578.82)

Child Amounts

• First child (born prior to April 6, 2017): £333.33 (from £315.00)
• First child (born on or after April 6, 2017) / second child and subsequent child (where an exception or transitional provision applies): £287.92 (from £269.58)

Disabled Child Additions

• Lower rate addition: £156.11 (from £146.31)
• Higher rate addition: £487.58 (from £456.89)

Limited Capability for Work amount: £156.11 (from £146.31)

Limited Capability for Work and Work-Related Activity

• Amount: £416.19 (from £390.06)
• Carer amount: £198.31 (from £185.86)

Work Allowances

Higher work allowance (no housing amount)

• One or more dependent children or limited capability for work: £673.00 (from £631.00)

Lower work allowance

• One or more dependent children or limited capability for work: £404.00 (from £379.00)

Full details on Universal Credit deduction amounts based on household circumstances can be found on GOV.UK here.

HMRC payment rates 2024/25

HMRC has also confirmed the new payment rates for Child Benefit and Guardian's Allowance, along with the new thresholds for Tax Credits. Full details can be found on GOV.UK here.

Child Benefit

• Eldest or only child: £25.60 (from £24.00)
• Additional children: £16.95 (from £15.90

Guardian's Allowance

• From April 2024: £21.75 ( from £20.40)

Working Tax Credit rates for 2024/25 (yearly amount shown)

Working Tax Credit is paid to people who are in work and on a low income.

Child Tax Credit is paid to people who have children and is paid in addition to Child Benefit and the Scottish Child Payment - you do not have to be working to receive it.

• Basic element: £2,435 (from £2,280)
• Couple and lone parent element: £2,500 (from £2,340)
• Disabled worker element: £3,935 (from £3,685)
• Severe disability element: £1,705 (from £1,595)

Full details on the Childcare element of Working Tax Credit, Child Tax Credit rates and Tax credits income thresholds and withdrawal rates can be found on GOV.UK here.

Devolved benefits and payment rates 2024/25

Scottish Child Payment

• New weekly rate: £26.70 (from £25)

Young Carer Grant

• Annual payment: £383.75 (from £359.65)

Carers Allowance Supplement

• June payment: £288.60 (from £270.50)
• December payment: £288.60

Carer Support Payment

• New weekly rate: £81.90 (from £76.75)
• New weekly earnings threshold: £151 (from £139)

Funeral Support Payment

• Higher rate: £1,257.75 (from ££1178.75)
• Lower rate: £153.50 (from ££143.85)
• Medical device removal rate: £25.35 (from £23.75)

Child Winter Heating Payment

• New annual payment rate: £251.50 (from £235.70)

Winter Heating Payment

• New annual payment rate: £58.75 (from £55.05)

Job Start Payment

• Higher rate: £503.10 (from £471.50)
• Standard rate: £314.45 (from £294.70)

Best Start Grants

• Best Start Grant:Pregnancy and Baby Payment 1st child (or subsequent child if relevant exemption applies: £754.65 (from £707.25)
• Best Start Grant: Pregnancy and Baby Payment subsequent child: £377.35 (from £353.65)
• Best Start Grant: Pregnancy and Baby Payment subsequent child multiple pregnancy supplement: £377.35 (from £353.65)
• Best Start Grant: Early Learning Payment: £314.40 (from £294.70)
• Best Start Grant: School Age Payment: £314.45 (from £294.70)
• Best Start Foods: Higher payment rate (from February 2024 ‘double the basic rate’): £10.60
• Best Start Foods: Lower payment rate (from February 2024 ‘the basic rate’): £5.30

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