Benefit rates rise 1.7% starting April 2025

Starting in April, benefit payment rates in the UK will increase by 1.7% as the new tax year begins. This change was announced by Chancellor Rachel Reeves during last year’s Budget. The rise aims to help claimants with financial support amid rising living costs. Most notably, Child Benefit rates will rise. Payments for the eldest or only child will increase from £25.60 to £26.05 per week. For additional children, the rate will go up from £16.95 to £17.25. This means families can expect slightly higher annual payments. Guardian’s Allowance, which supports those raising children whose parents have died, will also see a boost from £21.75 to £22.10 per week. Other changes include a rise in the National Minimum Wage by 6.7%, benefiting many low-wage workers. However, important cuts to welfare budgets have also been announced. Tax credits will end permanently on April 5, 2025, with claimants being directed towards Universal Credit or Pension Credit instead. This move is part of broader efforts to reform the benefits system.