In June 2025, the Department for Work and Pensions (DWP) introduced wide-ranging updates across 12 key UK benefits. The goal? To make support fairer, more generous, and better targeted—especially for carers, pensioners, disabled individuals, and low-income families. With payment increases, rule changes, and system reforms, these updates could directly impact your income and financial planning. Let’s break it all down so you can take the right action at the right time.
Universal Credit
Universal Credit saw a 1.7% uplift starting June 2025. This includes standard allowances and key elements like the carer’s amount, which rose from £198.31 to £201.68 per month.
Tip: Check your Universal Credit journal to view your updated entitlement. It should reflect in your June payment cycle.
Pension
The full new State Pension rose to £230.25 per week from £221.20, while the basic State Pension increased from £169.50 to £176.45. This came into effect in April 2025 under the triple lock system.
Who benefits: Retirees over 66 with enough National Insurance contributions.
Early Payments
If your benefit payment was due on Monday, June 5, it arrived earlier—on Friday, June 2. This change helped avoid delays caused by the Early June Bank Holiday.
Budget tip: Stretch the early payment to last until your next due date.
Deductions
For those repaying benefit-related debts, the maximum deduction from Universal Credit dropped from 25% to 15%. That means more cash in your pocket—up to £420 a year for some households.
What to do: Speak to your DWP work coach or check your journal to confirm the updated deduction percentage.
Credit
Pension Credit, which tops up income for those over State Pension age, rose by 4.1%. The new rates are:
| Type | Weekly Rate |
|---|---|
| Single Claimant | £227.10 |
| Couple | £346.60 |
Claiming Pension Credit can also unlock extras like free NHS dental care and reduced Council Tax.
PIP
Disability benefits like PIP and Attendance Allowance also saw increases:
| Benefit | New Weekly Rate |
|---|---|
| PIP Daily (Enhanced) | £110.40 |
| PIP Daily (Standard) | £73.90 |
| Attendance Allowance High | £110.40 |
| Attendance Allowance Low | £73.90 |
These changes offer more support to people with long-term conditions needing regular help.
Child Benefit
Child Benefit increased from April 2025:
- First child: £26.04/week
- Additional children: £17.24/week
Reminder: You may need to repay some of this via tax if you earn over £50,000.
Carers
Carer’s Allowance now lets you earn more—up to £196/week, up from £151. That’s great news for part-time workers balancing employment and caring responsibilities.
What to check: If you previously earned too much to claim, review your current earnings—you may now qualify.
Migration
Legacy benefits like Income Support, tax credits, and income-based ESA are being phased out. Everyone will eventually move to Universal Credit by January 2026.
If you get a Managed Migration Notice, you must act within three months to avoid losing benefits.
Criteria
Changes coming in 2026 will tighten eligibility for some disability-related payments:
- From April 2026: Universal Credit’s health element drops from £97 to £50/week for new claims.
- From November 2026: PIP assessments will require a minimum of 4 points in a single daily living activity.
These rules won’t apply to current claimants but will affect new applicants after the dates mentioned.
Housing
Those in supported housing will see updated Housing Benefit rules. While most will stay on Housing Benefit, others may transition to Universal Credit depending on their housing status.
If this affects you, DWP or your housing provider will let you know what steps to take.
Summary Table
Here’s a quick look at the key benefit changes:
| Benefit | Change | Date |
|---|---|---|
| Universal Credit | 1.7% rise in payments | June 2025 |
| State Pension | Increased to £230.25/week | April 2025 |
| Early Payments | Due to bank holiday | June 2025 |
| Debt Deduction Cap | Reduced from 25% to 15% | April 2025 |
| Pension Credit | Increased for singles and couples | April 2025 |
| PIP & Attendance Allowance | Enhanced and standard rates increased | April 2025 |
| Child Benefit | Increased weekly rates | April 2025 |
| Carer’s Allowance | Earnings limit raised to £196/week | April 2025 |
| Legacy Benefits | Moving to Universal Credit | Ongoing |
| Disability Criteria | Tougher rules for new claims | 2026 |
| Housing Benefit | Changes for supported housing | June 2025 |
Staying informed is the first step to making sure you don’t miss out. Whether you need to recheck eligibility, update earnings, or simply prepare for what’s ahead—these changes are a big deal. Keep an eye on your statements, review your benefit entitlements, and reach out for help if you’re unsure where you stand.
FAQs
What’s the new State Pension amount?
It’s now £230.25 per week from April 2025.
When did Universal Credit rates increase?
Rates rose by 1.7% starting June 2025.
How much can I now earn on Carer’s Allowance?
You can earn up to £196/week without losing it.
What’s the new cap on UC debt deductions?
It’s reduced from 25% to 15% of your standard allowance.
Do PIP and Attendance Allowance pay more now?
Yes, both saw increases in April 2025.