The Chancellor's Budget statement on 30 October 2024 confirmed that working-age benefits rates will increase by 1.7%1. The same statement set the full-rate basic pension to rise by £9 a week in April, to £230 a week, an increase of 4.1%1.
For a working-age person on benefits, the 1.7% uprating means income will rise by around £1.50 a week in April, with the standard personal allowance rising to £92 a week1. The Budget also extended the Household Support Fund and limited the amount deducted from benefits to pay for outstanding debts1.
On Carer's Allowance, the Chancellor announced that the earnings limit at which eligibility ends will be set at the amount earned by someone working 16 hours a week on the National Living Wage1. That raises the limit by £45 in April, to £196 per week1.
"The Chancellor's Budget statement today contains some small grains of comfort for working-age benefit claimants, confirming that benefits rates will increase by 1.7%"
The Budget confirmed two administrative changes. All Employment and Support Allowance claimants will move to Universal Credit by 2026 under an "accelerated" migration, instead of by 20281. Pension-age Housing Benefit will end, with all new claims for housing costs from 2026 administered with Pension Credit1.
| Measure | Change | Date |
|---|---|---|
| Working-age benefits | Up 1.7% | April1 |
| Standard personal allowance | Rises to £92 a week | April1 |
| Full-rate basic pension | Up £9 a week, to £230 a week | April1 |
| Carer's Allowance earnings limit | Up £45, to £196 a week | April1 |
| ESA migration to Universal Credit | Completed | 20261 |
| New housing cost claims for pensioners | Administered with Pension Credit | 20261 |
Plans to move the High Income Child Benefit Charge to a household basis were shelved. Doubling the income threshold to prevent large numbers of households being affected was estimated to cost £1.4 billion, and the Chancellor did not proceed1.
Why it matters for households
The 1.7% uprating applies to working-age benefits from April, and is the figure that sets the standard personal allowance at £92 a week1. Because pensioner benefits rise by 4.1%, the gap between pension-age and working-age benefit levels widens1. The Carer's Allowance earnings limit rises to £196 a week, which changes the point at which carers lose eligibility1. The end of pension-age Housing Benefit means that from 2026 new claims for help with housing costs will be handled through Pension Credit rather than by local authorities1. The High Income Child Benefit Charge continues on its existing individual basis, so the £60,000 threshold is unchanged1.
What happens next
Statistics due on 12 November should show how the Department for Work and Pensions is progressing with moving legacy benefit claimants to Universal Credit1. The 1.7% uprating, the £92 standard personal allowance, the £230 full-rate basic pension and the £196 Carer's Allowance earnings limit all take effect in April1. The ESA migration and the shift of new pensioner housing cost claims to Pension Credit are set for 20261.
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