Your Benefits Boost Just Kicked In - Here's What's Actually Landing in Your Pocket

By HOAR Team 7 April, 2025 8 mins read 145 Views

I woke up this morning to my sister texting me "did you see your UC payment??" and realized I completely forgot today was THE day. April 7th. The day millions of us on benefits finally see some extra cash. Not that it'll solve everything with my grocery bill still looking like I'm feeding a football team rather than just me and my cat.

So here's teh breakdown of what's actually changing. Spoiler alert: most benefits are rising by a measly 1.7%, while pensioners are getting a more generous 4.1% boost. My editor asked me to compile this list after her mum called her three times yesterday asking what her new pension amount would be.

Audio Summary of the Article

Attendance Allowance - The Overlooked One

This is that payment for folks above State Pension age dealing with physical or mental health issues. My neighbor relies on this and was literally counting the days until the increase.

It's paid at two rates depending on how severe your condition is, and both just went up by 1.7%.

The higher rate has increased from £108.55 to £110.40 weekly, while the lower rate is now £73.90, up from £72.65.

What's Actually Changing with Carer's Allowance?

God. This one hits close to home. My cousin's been caring for my aunt for years and this benefit barely covers the petrol for her visits.

You need to provide care for at least 35 hours weekly (which is basically a full-time job) and the person needs to be on certain benefits like Attendance Allowance or PIP.

The weekly payment has gone from £81.90 to £83.30. That's an extra £1.40 a week. Wow. Life-changing. (Can you sense my sarcasm?)

Child Benefit - Parents, Listen Up

This is for parents with kids under 16, or under 20 if they're still studying. I remember when my sister first applied for this back in 2018 - the form was so confusing she nearly gave up.

The rate for your eldest child has increased from £25.60 to £26.05 weekly.

Additional children now get £17.25 each per week, up from £16.95.

I know several parents who don't even claim this because they don't realize they're eligible. Check if you qualify!

DLA - The Benefit That's Being Phased Out

Disability Living Allowance is gradually being replaced by PIP, and you can only apply now if you're under 16.

All three payment levels have increased by 1.7%: - Highest: £108.55 → £110.40 - Middle: £72.65 → £73.90 - Lowest: £28.70 → £29.20

The mobility component has also increased: - Higher: £75.75 → £77.05 - Lower: £28.70 → £29.20

I spent about $300 last year helping my friend's son apply for this. The forms are absolutely brutal.

ESA - For When Health Affects Your Work

Employment and Support Allowance helps if you have health issues that impact how much you can work.

Single people will now get: - Under 25: £72.90 (up from £71.70) - 25 and older: £92.05 (up from £90.50) - Lone parent under 18: £72.90 (up from £71.70) - Lone parent 18+: £92.05 (up from £90.50)

Couples will receive: - Both under 18: £72.90 (up from £71.70) - Both under 18 with a child: £110.15 (up from £108.30) - Both over 18: £144.65 (up from £142.25) - Under 25, partner under 18: £72.90 (up from £71.70) - 25+, partner under 18: £92.05 (up from £90.50)

I feel stupid now for complaining about the paperwork involved. My neighbor lost her job due to long COVID and said getting ESA approved was harder than her university finals.

Housing Benefit Is Barely Breathing

This dinosaur is being replaced by Universal Credit, but existing claimants will see a 1.7% increase.

Single people under 25 will now get £72.90 (up from £71.70), while those over 25 get £92.05 (up from £90.50).

Young couples under 18 will receive £110.15 (up from £108.30), and couples over 18 get £144.65 (up from £142.25).

The rate for dependent children increases to £84.66 from £83.24.

Single pensioners now get £84.66 (up from £83.24), while pensioner couples will receive £366 (up from £352).

JSA - Because Looking for Work Is a Full-Time Job

New-style Jobseeker's Allowance has replaced the old income-based version. I claimed this briefly in 2020 when my contract ended right as the pandemic hit. Not fun.

The new rates are: - Under 25s: £72.90 (up from £71.70) - Over 25s: £92.05 (up from £90.50) - Couples under 18: £72.90 (up from £71.70) - Couples over 18: £144.65 (up from £142.25) - Single pensioners: £135.05 (up from £127.65) - Pensioner couples: £201.95 (up from £190.70)

Pension Credit - The Forgotten Lifeline

This tops up your State Pension if you're on a low income. My gran refused to apply for years because she was too proud. Don't make that mistake!

Guaranteed payments have increased by 4.1% to £227.10 weekly for single claimants (up from £218.15) and to £346.60 for couples (up from £332.95).

A single disabled claimant will see a smaller 1.7% increase to £82.90 (from £81.50), while couples where both qualify for disability payments will get £165.80 (up from £163).

The "Savings Credit" part has increased to £17.30 weekly for singles (from £17.01) and to £19.36 for couples (from £19.04).

PIP - When Life Costs More

Personal Independence Payment helps cover the extra costs of long-term health conditions or disabilities. I've helped three friends apply for this in the last year alone. The process is absolutely draining.

Daily living component: - Enhanced: £110.40 (up from £108.55) - Standard: £73.90 (up from £72.65)

Mobility component: - Enhanced: £77.05 (up from £75.75) - Standard: £29.20 (up from £28.70)

The Triple-Locked State Pension Actually Delivers

Unlike most benefits, the State Pension has increased by 4.1% thanks to the triple lock. It's now worth £11,975 annually, up from £11,502.40.

The full new State Pension is now £230.25 weekly (up from £221.20), while the basic part of the old State Pension increases to £176.45 (from £169.50).

My dad just hit pension age last month. His response: "Too little, too late - already updating my resume."

Baby on the Way? Statutory Pay Got a Tiny Bump

Statutory parental payments have increased by 1.7% from £184.03 to £187.18 weekly.

This covers maternity, paternity, shared parental, adoption and parental bereavement payments.

Sick Pay - Because Illness Doesn't Pay the Bills

Statutory Sick Pay has increased from £116.75 to £118.75 weekly. Your employer pays this for up to 28 weeks.

When I caught COVID back in January and missed two weeks of work, this barely covered my heating bill. Just saying.

Universal Credit - The Big One

The standard monthly allowance has increased by 1.7%: - Single under 25: £316.98 (up from £311.68) - Single 25+: £400.14 (up from £393.45) - Joint claimants both under 25: £497.55 (up from £489.23) - Joint claimants with one or both 25+: £628.10 (up from £617.60)

Extra amounts for children: - First child born before April 6, 2017: £339 (up from £333.33) - Child born after April 6, 2017 or second/subsequent child: £292.81 (up from £287.92) - Disabled child, lower rate: £158.76 (up from £156.11) - Disabled child, higher rate: £495.87 (up from £487.58)

Limited capability for work: - Limited capability: £158.76 (up from £156.11) - Limited capability for work or work-related activity: £423.27 (up from £416.19)

Carer amount: - £201.68 monthly (up from £198.31)

Work allowance rates: - Higher (no housing): £684 (up from £673) - Lower: £411 (up from £404)

Look, I'm not going to pretend these increases will change anyone's life. But check what you're entitled to. I found out last year I was missing out on nearly £4K annually because I didn't know I qualified for an additional element.

Frequently Asked Questions

What is a budget deficit?

A budget deficit occurs when a government's expenditures exceed its revenues over a specific period, usually a fiscal year. This can lead to increased borrowing and national debt if not addressed through spending cuts or revenue increases.

What is the role of central banks in the economy?

Central banks manage a nation's currency, money supply, and interest rates. They implement monetary policy to control inflation, stabilize the currency, and foster economic growth. They also serve as lenders of last resort to the banking system during financial crises.

How can I improve my credit score?

To improve your credit score, make timely payments on all debts, reduce credit card balances, avoid opening unnecessary credit accounts, and regularly check your credit report for errors, disputing any inaccuracies. Maintaining a mix of credit types and keeping old accounts open can also be beneficial.

What are the main functions of money?

The primary functions of money are as a medium of exchange, facilitating trade; a unit of account, which provides a standard measure of value; a store of value, allowing individuals to save and transfer purchasing power over time; and a standard of deferred payment, enabling credit transactions.

How does inflation affect the value of money?

Inflation refers to the general rise in prices over time, which erodes the purchasing power of money. As inflation increases, each unit of currency buys fewer goods and services, meaning that the value of money decreases in terms of what it can purchase.

What are credit scores and why are they important?

Credit scores are numerical representations of an individual's creditworthiness, calculated based on credit history, payment behavior, and debt levels. They are important because they impact the ability to obtain loans, credit cards, and favorable interest rates, affecting overall financial health.

What is the difference between saving and investing?

Saving typically involves setting aside money in a secure account for short-term needs or emergencies, while investing involves using money to purchase assets like stocks or real estate with the expectation of generating a return over the long term. Investing carries higher risks but offers the potential for greater rewards.

Statistics

As of 2021, the average American household had approximately $8,400 in credit card debt, according to Experian.
The average return on investment for the S&P 500 over the past 90 years is about 10% per annum.
A survey by the American Psychological Association found that 72% of Americans reported feeling stressed about money at some point in the past month.
The average cost of raising a child in the U.S. is estimated to be around $233,610, according to the U.S. Department of Agriculture.
According to a survey by the Financial Industry Regulatory Authority (FINRA), about 66% of Americans could not correctly answer four basic financial literacy questions.
According to a Gallup poll, 56% of Americans report that their financial situation is better than it was a year ago.
According to the Bureau of Labor Statistics, the average American spends about $1,500 per year on coffee.
As of 2021, the median household income in the U.S. was approximately $67,521, according to the U.S. Census Bureau.

External Links

How To

How To Start Investing for Beginners

Starting to invest can be daunting, but it is a crucial step towards building wealth. Begin by setting clear financial goals, such as saving for retirement or a major purchase. Educate yourself on different investment options, including stocks, bonds, mutual funds, and ETFs. Consider starting with a brokerage account that offers user-friendly platforms and educational resources. Diversify your investments to reduce risk, and consider low-cost index funds or robo-advisors if you prefer a hands-off approach. Make regular contributions, and resist the temptation to react to market fluctuations. Over time, compound interest will help your investments grow significantly.