Benefits uprating 2024/25
DWP benefits that are linked to inflation rise by 6.7% in April 2024, as do inflation-linked tax credit elements and benefits administered by HMRC. The basic and new State Pension will be uprated by 8.5% from April 2024.
The Secretary of State for Work and Pensions is required to review the level of benefits each year. This briefing sets out the main benefit and tax credit rates that have been announced for the 2024/25 financial year.
Inflation-linked benefits and tax credits will rise by 6.7% from April 2024, in line with the Consumer Prices Index (CPI) rate of inflation in September 2023.
For example, in 2024/25 Universal Credit standard allowances will increase:
- From £292.11 to £311.68 per month for single people aged under 25
- From £368.74 to £393.45 per month for single people aged 25 and over
- From £458.51 to £489.23 per month for joint claimants both aged under 25
- From £578.82 to £617.60 per month for joint claimants both aged 25 and over
The basic and new State Pension will increase by 8.5% from April 2024, in line with the earnings growth measure used in the pensions triple lock.
The full rates for 2024/25 will be:
- £221.20 per week for the new State Pension (for those reaching State Pension age on or after 6 April 2016) – up from £203.85 in 2023/24.
- £169.50 per week for the basic State Pension (the core amount in the old State Pension system) – up from £156.20 in 2023/24.
The Pension Credit standard minimum guarantee (delivered by the Guarantee Credit) will also increase by 8.5% in line with earnings, to £218.15 per week for single claimants and £332.95 per week for couples.