Chancellor confirms new State Pension and benefit payment rates from next April in Autumn Budget

Linda Howard
·5-min read

Chancellor Rachel Reeves confirmed that State Pension payments will rise by the earnings growth measure of the Triple Lock policy during the Autumn Budget on Wednesday. This means millions of older people claiming the New and Basic State Pension will see payments rise by 4.1 per cent from next April.

Similarly, people on disability benefits such as Personal Independence Payment (PIP), Disability Living Allowance (DLA) and Attendance Allowance will see payments rise by the September Consumer Price Index (CPI) inflation rate of 1.7 per cent. The Chancellor also announced that 7 million people on Universal Credit will see payments go up by 1.7 per cent next year.

Ms Reeves also confirmed that the Pension Credit earnings threshold will rise by 4.1 per cent from the current £11,400 to £11,850 next April. This increase takes into account the State Pension uprating which could see State Pensioners receive an uplift of up to £470 over the 2025/26 financial year.

READ MORE: People over State Pension age living on their own could be due annual income top-up of nearly £4,000

READ MORE: New update on legal bid to reverse Winter Fuel Payment cut to millions of State Pensioners

The Chancellor also announced that the weekly earnings limit for Carer's Allowance will rise to the equivalent of 16 hours a week at the National Living Wage, the largest increase since the allowance was introduced.

Ms Reeves told MPs: “Carer’s allowance currently provides up to £81.90 per week to those with additional caring responsibilities. Today, I can confirm that we are increasing the weekly earnings limit to the equivalent of 16 hours at the National Living Wage per week, the largest increase since Carer’s Allowance was introduced in 1976.

“That means a carer can now earn over £10,000 a year while receiving Carer’s Allowance, allowing them to increase their hours where they want to and keep more of their money.”

The Chancellor nodded to the Work and Pensions Secretary Liz Kendall’s review of overpayments to Carer’s Allowance claimants, saying: “I am also concerned about the cliff-edge in the current system and the issue of overpayments.”

State Pension payments 2025/26

The calculations below are based on the Chancellor's announcement that State Pensions will rise by 4.1 per cent from April 2025. It’s important to be aware that additional State Pension elements will increase by the September CPI figure of 1.7 per cent.

Full New State Pension

  • Weekly payment: £230.25 (from £221..20)

  • Four-weekly payment: £921 (from £884.80)

  • Annual amount: £11,973 (from £11,502)

Full Basic State Pension

  • Weekly payment: £176.45 (from £169.50)

  • Four-weekly payment: £705.80 (from £678)

  • Annual amount: £9,175 (from £8,814)

Disability benefits

Disability benefits, including Carer’s Allowance will rise by the September CPI figure of 1.7 per cent in April. Devolved disability benefits such as Adult Disability Payment (ADP), Child Disability Payment, Pension Age Disability Payment and Carer Support Payment are expected to rise in-line with Westminster to avoid a two-tier benefits system in Great Britain.

A successful claim for PIP or ADP is currently worth between £28.70 and £184.30 each week in additional financial support and as the benefit is paid every four weeks - resulting in 13 payments over the course of a year instead of 12 - this amounts to between £114.80 and £737.20 every payment period.

Weekly component rates for 2025/26

An uprating of 1.7 per cent will see people on disability benefits receive between £29.20 and £187.45 each week, some £116.80 or £749.80 every four-week pay period.

It's important to be aware the highest figure of £749.80 is based on someone receiving the highest award for both the daily living and mobility components.

Attendance Allowance does not include a mobility component.

PIP, Adult Disability Payment, Child Disability Payment and DLA

Estimated weekly rates are shown for all benefits, most are paid every four weeks so to calculate your own uplift simply look for your award rate and multiply by four.

Daily living

  • Lower care award (CDP, DLA only): £29.20 (from £28.70)

  • Standard: £73.90 (from £72.65)

  • Enhanced: £110.40 (from £108.55)

Mobility

  • Standard: £29.20 (from £28.70)

  • Enhanced: £77.05 (from £75.75)

Attendance Allowance

  • Lower rate: £73.90 (from £72.65)

  • Higher rate: £110.40 (from £108.55)

Carer's Allowance

  • Weekly payment rate: £83.30 (from £81.90)

  • Four-week pay period: £333.20 £from £327.60)

Universal Credit

  • Single, aged 25 and over: £400.14 (from £393.45)

  • Couples, aged 25 and over: £1,213.72 (from £1,193.44)

The Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC) will publish a full list of the benefit payments for 2025/26 within the next few weeks.

Commenting on the Chancellor's uprating announcements, Helen Morrissey, head of retirement analysis, Hargreaves Lansdown, said: "Today’s news spells good news for pensioners who can look forward to a 4.1 per cent increase in their State Pension from next year. However, the rise will be largely wiped out by the government’s decision to restrict the Winter Fuel payment to pensioners on Pension Credit. With fuel bills on the rise, the loss of up to £300 will be sorely felt and many face a tough Winter ahead.

"It's hugely important that if you think you or a loved one may qualify for Pension Credit that you put in a claim. It is an important, but hugely underclaimed benefit that acts as a gateway to other help such as support with council tax and a free TV licence for the over 75s. However, recent government data shows only about two-third of people who could benefit from Pension Credit are claiming it so the government has an uphill struggle on its hands to boost awareness.”

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