Statement on Statutory Review of State Pension and Benefit Rates: 2024-25

Statutory Review of State Pension and Benefit Rates: 2024-25

Statement by Mel Stride

I have concluded my statutory annual review of State Pension and benefit rates in Great Britain. The new rates will apply in the tax year 2024/25 and come into effect on 8 April 2024.

I am pleased to announce that the basic and new State Pensions will be increased by 8.5%, in line with the increase in Average Weekly Earnings in the year to May-July 2023. This delivers on our ‘triple lock’ commitment to increase these rates in line with the highest of growth in prices, growth in earnings or 2.5%. This year’s increase is the second highest on record – and means that the full annual rate of the basic State Pension will be over £8,800 from next April. The full rate of the new State Pension will rise to over £11,500.

The Standard Minimum Guarantee in Pension Credit will also increase by 8.5%, as will the weekly earnings limit in Carer’s Allowance.

Recognising the upward pressure in rents, despite the challenging fiscal context, the local housing allowance rates will be increased. These rates for Universal Credit and Housing Benefit will cover the lowest 30% of local rents; and the national maximum caps will be increased, so claimants in inner and central London will also see an increase in their housing support payments.

Other State Pension and benefit rates covered by my review under the Social Security Administration Act 1992 will be increased by 6.7%, in line with the Consumer Prices Index for the year to September 2023. This includes Universal Credit and other benefits for people below State Pension age; benefits to help with additional needs arising from disability, such as Attendance Allowance, Disability Living Allowance and Personal Independence Payment; Statutory Payments including Statutory Sick Pay and Statutory Maternity Pay; and Additional State Pension. The Pension Credit Savings Credit maximum amount will also increase by 6.7%.

Up-rating of devolved benefits in Scotland is a matter for the Scottish Government. Some of these – such as Attendance Allowance, Carer’s Allowance, Disability Living Allowance and Personal Independence Payment – are being temporarily delivered by DWP on behalf of the Scottish Ministers under Agency Agreements. In these cases, the Scottish Government will bring forward corresponding up-rating legislation in the Scottish Parliament.

Social security is a transferred matter in Northern Ireland. Corresponding provision for State Pension and benefit up-rating will be made by the Department for Communities there.

I will place the full list of proposed State Pension and benefit rates for 2024/25 in the Libraries of both Houses in due course.