Benefits news: page 7
- April 2025
Help to Save eligibility expanded for Universal Credit claimants
From 6 April 2025, Universal Credit claimants earning £1 or more in their assessment period can open a Help to Save account, replacing the previous 16 hours a week earnings test.
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.
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.
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.
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.
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%.
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.
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.
Tax Credit system closes, affecting pension-age CTRS eligibility
The Tax Credit system closed in April 2025, and pension-age recipients who moved to Universal Credit became ineligible for pension-age Council Tax Reduction in Wales under existing rules.
Working-age benefits uprated by 1.7%, below CPI of 3.5%
Benefits rose by 1.7% in April 2025, pegged to September 2024 inflation, while CPI had reached 3.5% by that month, leaving a gap between benefit income and rising prices.
- March 2025
Scottish Adult Disability Living Allowance introduced and DWP Disability Living Allowance awards transferred
All adults in Scotland receiving Disability Living Allowance from the Department for Work and Pensions had their awards moved to Scottish Adult Disability Living Allowance from 21 March 2025, with no new claims accepted.
Government announces changes to PIP claiming rules
The government said in March 2025 that it will change the rules for claiming Personal Independence Payment, meaning fewer people can get it, with the changes not happening before November 2026.
Government publishes impact assessments on disability benefit cuts
The government has published impact assessments alongside the Spring Statement showing its disability benefit plans will cut the incomes of one in five disabled people and push 50,000 more children into absolute poverty.
Household Support Fund ends 31 March 2025
The Household Support Fund ends on 31 March 2025, the same date as the deadline to claim the 2024/25 Winter Fuel Payment and the extension of Northern Ireland's Welfare Supplementary Payments.
OBR publishes forecast alongside Spring Statement 2025
The Office for Budget Responsibility's Spring Statement forecast found no clear evidence that the government's disability benefit plans will move more disabled people into work, as new impact assessments set out the cuts' effects.
Scottish Adult Disability Living Allowance first introduced in Scotland
Adults in Scotland receiving Disability Living Allowance had their awards moved automatically to a new Scottish Adult DLA from the end of March 2025, with no application and no change in payment amount.
Spring Statement announces payroll option for paying the high-income child benefit charge
Families liable for the high income child benefit charge will be able to pay it through their tax code and company payroll from summer 2025, under changes announced in the Spring Statement.
Spring Statement commits to above-inflation UC standard allowance increase from April 2026
The Spring Statement committed to an above-inflation rise of around 2 per cent in the Universal Credit standard allowance from April 2026, while most benefits rose by 1.7 per cent in April 2025.
Supreme Court hears DWP appeal in Bereavement Support Payment case
The Supreme Court has ruled against a widower denied Bereavement Support Payment because his late wife could not work, overturning earlier judgments in his favour and backing the DWP.