Money news: page 18
- April 2025
Scottish Income Tax changes take effect
Scottish Income Tax rates and bands for 2025-26 took effect on 6 April 2025, with the Starter and Basic rate bands widened and the Higher, Advanced and Top rate thresholds frozen.
Tax credit migration amendments take effect from 6th April 2025
Amendments to Northern Ireland's Universal Credit transitional provisions took effect on 6 April 2025, substituting regulation 4A and barring new tax credit claims for the tax year beginning on that date.
Universal credit earned income condition substituted
The rules governing who qualifies for a Help to Save account on Universal Credit were changed from 6 April 2025, substituting the earned income condition in the 2018 regulations.
Universal Credit standard allowance rates rise in April 2025
The Universal Credit standard allowance rose in April 2025, with the single rate for someone aged 25 or over reaching £400.14 a month and the couple rate £628.10.
Zoopla survey finds majority of homeowners undervalue their property
Zoopla research reported on 5 April 2025 found that 64% of homeowners undervalue their property, with more than a third of those putting it £100,000 or more below estate agent estimates.
April 2025 tax, benefit and bill changes take effect
Freezing of personal tax thresholds, a higher employer National Insurance rate, Council Tax and water bill rises, a £111 energy price cap increase and 1.7 per cent benefit uprating all took effect in April 2025.
April price rises to increase emergency savings needs
Hargreaves Lansdown research reported by Which? calculates that households need up to £1,780 more in emergency savings to cover essential costs after April bill rises.
Benefit and pension rates increased from April 2025
Benefit and pension rates rose in April 2025, lifting Universal Credit standard allowances and extra elements, as official figures later showed 8.3 million people on Universal Credit by February 2026.
Benefit and pension rates uprated for 2025/26
Proposed benefit and pension rates for 2025/26 have been published, uprating most working-age and disability benefits and pensions while leaving the benefit cap unchanged.
Carer's Allowance weekly earnings limit to rise from £151 to £196
The weekly earnings limit for Carer's Allowance rises from £151 to £196 in April 2025, set at the amount earned by 16 hours at the National Living Wage, and will track future wage increases.
Carer Support Payment replaces Carer's Allowance in Scotland
Carer's Allowance has been replaced in Scotland by Carer Support Payment, with existing claimants moved across automatically and new claimants told to apply for the Scottish payment instead.
Class 1 Secondary NICs rate to rise to 15% with threshold lowered to £5,000
Employer National Insurance contributions rise from 13.8% to 15% and the point at which they become payable falls from £9,100 to £5,000 a year from 6 April 2025.
CMA gains direct consumer enforcement powers
The CMA has opened an investigation into Microsoft 365 subscription changes, using consumer enforcement powers it has held since April 2025 to decide whether consumer law was breached.
Council tax bills expected to rise across England and Wales from April 2025
Council tax bills rise across England, Wales and Scotland from April 2025, with English bills up about 5% on average and Scottish bills up 9.6%, as most English councils use their referendum-free limit.
Council Tax Reduction Scheme automation improvement takes effect in Wales
From April 2025 councils in Wales can use Universal Credit data to automate applications for Council Tax support, the Welsh Government has confirmed in a consultation on Council Tax administration.
Debt Rescue Scheme testing begins and Universal Credit data used for Council Tax reduction
The Welsh Government is testing a Debt Rescue Scheme in three areas and using Universal Credit data to help reduce Council Tax bills from April 2025.
DWP to check all Carer's Allowance overpayment alerts
From April 2025 the Department for Work and Pensions will check every Carer's Allowance overpayment alert it receives and investigate past overpayments, after years in which not all cases were reviewed.
DWP to recruit over 500 additional fraud and error staff from April 2025
The Department for Work and Pensions will recruit more than 500 additional fraud and error staff from April 2025, part of measures to use government data to correct errors in benefit claims.
Earnings threshold rises to £846 a month
The monthly earnings threshold used to decide whether the benefit cap grace period applies to Universal Credit claimants rose from £793 to £846 on 1 April 2025.
Employer NI rise took effect, pushing employee tax wedges up
The April 2025 employer National Insurance rise took effect, raising the effective tax rate on the median employee to 27 per cent, the highest since 2011-12.
Energy price cap rises to £1,849 for typical dual-fuel consumer
Ofgem's energy price cap rose 6.4% on 1 April 2025, taking the typical dual-fuel bill to £1,849 a year, as water, council tax and rail costs also increased.
Fair Repayment Rate introduced
The Fair Repayment Rate took effect in April 2025, cutting the maximum that can be deducted from a Universal Credit standard allowance for debt repayments from 25% to 15%.
HMRC to end overtaxing of first pension withdrawals from April 2025
HMRC has changed how tax codes are applied to new private pension withdrawals from April 2025, aiming to stop savers being overtaxed on their first payments.
LHA rates to be frozen at 2024 values
Local Housing Allowance rates are to be frozen at 2024 values from April 2025, continuing a pattern that has seen the housing benefit rate held down in seven of the last 14 years.
National Living Wage rises to £12.21 and other minimum wage rates increase
The National Living Wage rose to £12.21 an hour on 1 April 2025, with lower minimum wage rates for younger workers and apprentices also increasing, alongside the daily accommodation offset.
Proposed implementation of updated council tax property list in Wales from 1 April 2025
The Welsh Government has proposed an updated council tax property list for Wales taking effect from 1 April 2025, based on property valuations as at 1 April 2023.
Resolution Foundation publishes Saving Penalties report on Universal Credit capital rules
The Resolution Foundation published Saving Penalties, a report on Universal Credit capital rules, estimating 2 million families had reduced entitlement because of savings thresholds.
Scotland replaces Attendance Allowance with Pension Age Disability Payment
Scotland has replaced Attendance Allowance with Pension Age Disability Payment, a new benefit administered by Social Security Scotland, with rollout completed across the country in April 2025.
Social security benefits rise 1.7%
Social security benefits rose by 1.7% in April 2025, with state pensions and the Pension Credit minimum guarantee rising faster at 4.1%, alongside changes to Carer's Allowance and the National Minimum Wage.
Stamp Duty changes took effect, driving rush of house purchase completions in Q1 2025
Stamp Duty changes on 1 April 2025 pushed buyers to complete purchases early, with UK Finance reporting a rush of completions through to the end of March.