Social security benefits rise 1.7%

Social security benefits increased by 1.7% in April 2025, according to the benefit changes timetable published by Turn2us¹. The same timetable states that the New and Basic State Pensions, and the Minimum Guarantee element of Pension Credit, rose by 4.1%¹. The two figures differ because the state pension and the Pension Credit minimum guarantee are uprated on a different basis from most working age benefits.

The 1.7% rise applies to benefits generally, while the 4.1% figure is given specifically for the New and Basic State Pensions and the Minimum Guarantee element of Pension Credit¹. The timetable does not list which individual benefits fall into each group.

Other amounts changed at the same time. The earnings threshold for Carer's Allowance rose from £151 to £196¹. The National Minimum Wage increased by 6%, to £12.21 an hour for people aged 21 and over, £10.00 an hour for 18 to 20 year olds, and £6.40 for apprentices and those under 18¹. The Administrative Earnings Threshold rose to £952 a month for single people and £1,534 a month for couples¹.

The same timetable records a set of deadlines and closures around the start of April. The Tax Credit service closed on 5 April 2025 and all remaining accounts were closed¹. The deadline to pay voluntary National Insurance contributions for the contribution years 2006/7 to 2015/6, to increase New State Pension entitlement, was extended to 5 April 2025¹. The Household Support Fund ended on 31 March 2025, and the deadline to claim the 2024/25 Winter Fuel Payment was also 31 March 2025¹.

In Scotland, the Pension Age Disability Payment, which replaces Attendance Allowance, became available in 13 more local authority areas from 24 March and was rolled out nationally by 22 April¹. The transfer of people from Carer's Allowance to Carer Support Payment was expected to be complete, and the transfer of people getting Disability Living Allowance to Adult Disability Payment was expected to begin¹. In Northern Ireland, pensioners who did not get the Winter Heating Payment were to receive a one-off £100 fuel support payment by 31 March, and Welfare Supplementary Payments were extended until 31 March 2025¹.

Why it matters for households

For anyone whose income comes from social security, the April 2025 uprating sets the cash amount they receive for the year ahead. The 1.7% increase is smaller than the 4.1% applied to the state pension and the Pension Credit minimum guarantee, so the gap between pensioner and working age benefit rates widened at this uprating¹.

The Carer's Allowance change raises the amount a carer can earn before the benefit is affected, from £151 to £196¹. The National Minimum Wage rise sets new hourly floors for workers at the rates and ages listed above¹.

The closures and deadlines affect people who had not yet acted: tax credit accounts closed on 5 April 2025, the Household Support Fund ended on 31 March 2025, and the 2024/25 Winter Fuel Payment could not be claimed after 31 March 2025¹. The voluntary National Insurance deadline for the years 2006/7 to 2015/6 was extended to 5 April 2025¹.

What happens next

The timetable lists further dates for 2025. All managed migration notices for moving people from legacy benefits to Universal Credit are expected to be sent by the end of September 2025¹. Working parents of children under five will be entitled to 30 hours free childcare a week from September 2025¹.

In October 2025 the government is to start a review of Personal Independence Payment assessments, called the Timm's Review, expected to finish by autumn 2026¹. In November 2025, the Pension Age Winter Heating Payment in Scotland is expected to launch, replacing the Winter Fuel Payment, and the Cold Weather Payment 2025 scheme opens in England, Wales and Northern Ireland¹. In December 2025, the Winter Heating Payment 2025/26 is expected to be paid to eligible households in Scotland¹.