DWP Payment Boost 2025: Major Changes Brought By The UK Benefits System Could Mean Up To £4,300 Increase For Older Couples

The Department for Work and Pensions (DWP) has confirmed that benefits and pensions will rise from April 2025, offering modest increases for millions of households. Some outlets have reported that older couples could receive as much as £4,300 more annually.

The official adjustments, announced in November 2024, mean that most inflation-linked benefits will increase by 1.7 per cent, while both the basic and new state pensions will rise by 4.1 per cent. For many older people this will help offset rising living costs. However, the larger £4,300 figure applies only to those entitled to Pension Credit who are not yet claiming it.

Confirmed Changes

According to the House of Commons Library, the full new state pension will rise from £221.20 to £230.25 per week from April 2025. The basic state pension, for those who reached pension age before April 2016, will increase from £169.50 to £176.45 per week.

Universal Credit standard allowances will also rise in line with the September 2024 Consumer Prices Index figure. From April 2025, single people aged over 25 will receive £400.14 per month, while joint claimants aged over 25 will receive £628.10.

These increases reflect the statutory uprating process. State pensions, in particular, rise under the so-called triple lock, which guarantees that payments increase each year by the highest of inflation, earnings growth or 2.5 per cent. For 2025/26, the figure is based on average earnings growth of 4.1 per cent recorded between May and July 2024.

Where the £4,300 Figure Comes From

Several media reports have suggested that couples could see a £4,300 annual uplift from the DWP. In reality, this figure refers to the average annual value of Pension Credit, a means-tested benefit designed to top up income for people over state pension age.

The DWP estimates that around 700,000 eligible households are not currently claiming Pension Credit, despite around 1.4 million already receiving it. Ministers have urged more people to apply, particularly as the additional money could help with rising living and heating costs over the winter.

What Pension Credit Provides

Pension Credit has two main elements. Guarantee Credit lifts weekly income to at least £227.10 for a single person or £346.60 for a couple in 2025/26, with higher amounts available for some carers and disabled people.

Savings Credit, available only to those who reached pension age before April 2016, offers extra support to people who have some retirement savings. This can add up to £17.30 per week for a single person or £19.36 for a couple.

Together, these elements explain why the benefit is often worth around £4,300 a year, though the exact amount depends on household circumstances. Pension Credit can also unlock other forms of support, including help with NHS costs, council tax and heating bills.

Impact on Older Couples

For a couple on the full new state pension, the 4.1 per cent uprating will mean a combined weekly income of £460.50, just under £24,000 a year. If they are also entitled to Pension Credit, their annual income could rise further by several thousand pounds.

Financial advisers stress that while the state pension uprating provides a guaranteed increase, Pension Credit remains the most significant untapped source of additional support for those who qualify.

No Automatic Increase

While the state pension uprating for April 2025 is confirmed, claims of an automatic £4,300 rise should be treated with caution. That figure applies only to households eligible for Pension Credit and currently missing out on payments.

As of September 2025, pensioners have already seen the modest rises confirmed last year. However, those who qualify for Pension Credit could gain far more if they take the step to claim. The DWP advises that entitlement can be checked online or by phone, with the process taking only a few minutes but potentially unlocking thousands of pounds in extra support.