Secretary of State for Work and Pensions (): I have concluded my statutory annual review of
state pension and benefit rates under the Social Security
Administration Act 1992. The new rates will apply in the tax year
2025/26 and will mainly come into effect from 7 April 2025.
I am pleased to announce that the basic and new state pensions,
and the standard minimum guarantee in pension credit, will be
increased by 4.1%, in line with the increase in average weekly
earnings in the year to May-July 2024.
This demonstrates our commitment to supporting pensioners,
protecting the triple lock, which benefits over 12 million
pensioners. From April, the full yearly rate of the new state
pension will increase by over £470.
Other state pension and benefit rates covered by my statutory
review will be increased by 1.7%, in line with the increase in
the consumer prices index in the year to September 2024.
This includes universal credit and other benefits and statutory
payments linked to participation in the labour market; and
additional state pension and pension credit elements other than
the standard minimum guarantee.
These increases will apply across Great Britain.
In England and Wales, personal independence payment and other
benefits to help with additional needs arising from disability,
and the rate of carer's allowance, will also increase by 1.7%. In
Scotland, these are devolved matters.
All of social security, including state pensions, is a
transferred matter in Northern Ireland.
I will place the full list of proposed state pension and benefit
rates for 2025/26 in the Libraries of both Houses in due course.
Although not covered by my statutory review of state pension and
benefit rates, I can also inform the House that local housing
allowance rates for 2025/26 will be maintained at the 2024/25
levels, following their increase in April 2024; and that the
benefit cap has not been reviewed for 2025/26 and will also be
maintained at the 2024/25 levels.
Chief Secretary to the Treasury (): The Tax Credits Act 2002
and the Social Security Administration Act 1992 place a statutory
duty on His Majesty's Treasury to review the rates of tax credits
and Child Benefit each year in line with the general level of
prices. There is a further statutory duty on the Treasury to
increase Guardian's Allowance in line with price growth. I have
now concluded the review for the tax year 2025/26.
I have decided to increase Child Benefit rates in line with the
Consumer Price Index (CPI) for the year to September 2024, which
is 1.7%. Guardian's Allowance will also increase by the same
rate. This means that, from 7 April 2025:
- the Child Benefit rate for the eldest child will increase
from £25.60 to £26.05 per week;
- the Child Benefit rate for other children will increase from
£16.95 to £17.25 per week;
- Guardian's Allowance will increase from £21.75 to £22.10 per
week.
I have determined that there will be no need for changes to tax
credits rates in the tax year 2025/26, as there will be no tax
credits awards after 5 April 2025.
The new rates will apply across the United Kingdom.
