As the UK continues to navigate the challenges of the cost of living crisis, the Department for Work and Pensions (DWP) has announced several key updates for benefit recipients in April 2025.
This month will see not only the usual benefit payments but also significant changes in payment schedules due to Easter bank holidays and increases in benefit rates to help offset rising living costs.
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Payment Dates in April 2025
Benefit payments in April will generally follow the usual schedule, but there are important exceptions due to the Easter holidays. Payments usually made on Good Friday (April 18) and Easter Monday (April 21) will be paid early on Thursday, April 17, 2025.
This adjustment applies to most DWP-administered benefits, including Universal Credit, State Pension, Personal Independence Payment (PIP), Child Benefit, Carer’s Allowance, and Disability Living Allowance (DLA). Attendance Allowance, Income Support, Employment and Support Allowance (ESA), and Jobseeker’s Allowance (JSA).
All Other Increases in Benefits
In response to the ongoing cost-of-living crisis, the DWP has confirmed that all working-age benefits will increase by 1.7% from April 2025, aligning with the September 2025 inflation rate. This increase will affect benefits such as Universal Credit, PIP, DLA, Attendance Allowance, Carer’s Allowance, ESA and more.
The State Pension will also see a significant rise, increasing by 4.1% due to the triple lock mechanism, which ensures that pensions rise by the highest of earnings growth, inflation, or 2.5%. The full state pension will increase from 221.20 to 230.25 euros per week, while the basic state pension will rise from 162.70 to 169.50 euros per week.
The UK government is also providing a one-time 250 euro cost-of-living payment to support low-income households, pensioners, and individuals on disability benefits.
This is a tax-free benefit and will be automatically transferred between April 8 and April 28, 2025, into the same bank account where recipients currently receive their benefits.
Eligible individuals should monitor their accounts for this payment, which will be identified by the reference “DWP COL” if paid through the DWP or “HMRC COLP” if paid through HM Revenue and Customs.
Universal Credit Deduction Cap
From April 2025, the maximum deduction for repayments from Universal Credit will be reduced from 25% to 15% of the standard allowance, providing relief for those managing debt repayments.
Future Changes
Looking ahead, significant changes are planned for Universal Credit and Personal Independence Payment (PIP). From April 2026, the standard allowance for Universal Credit will rise, but the health element for new claimants will be reduced significantly.
Additionally, PIP eligibility criteria will be tightened from November 2026, requiring a minimum of four points on a single activity to qualify for the main component.
Although Beneficiaries should be aware of the adjusted payment dates due to Easter. As the economic landscape continues to evolve, staying informed about these updates is crucial for managing finances effectively.