Money news: page 20
- 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.
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.
State pension to rise by 4.1% in April 2025
The state pension rises by 4.1% in April 2025 after July earnings growth was revised up, taking the full new state pension to £230.30 a week and £11,975 a year.
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.
Vehicle tax rates introduced for electric, zero and low emission vehicles
Electric, zero and low emission cars, vans and motorcycles became subject to vehicle tax rates introduced on 1 April 2025, with the change applying to both new and existing vehicles.
Winter Fuel Payments charge takes effect from 6 April 2025
A new income tax charge takes effect from 6 April 2025 to recover Winter Fuel Payments from pensioners with total income over £35,000, collected through PAYE or Self Assessment.
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
OBR-certified costing assumed ending temporary SDLT thresholds would raise revenue
The temporary stamp duty thresholds introduced under Liz Truss expired on 31 March 2025, and an OBR-certified costing assumed the change would raise £850m in 2025-26, rising to £1.635bn by 2027-28.
PRA consults on raising FSCS deposit protection limit to £110,000
The Prudential Regulation Authority has proposed raising the FSCS deposit protection limit from £85,000 to £110,000 from 1 December 2025, with a higher limit for temporary high balances.