Spring marks the start of the new financial year, bringing along both opportunities and challenges.
As incomes rise, so do costs, making it crucial for individuals and households to stay informed about available financial support.
Key Financial Changes for April 2025
With April ushering in a new financial year, millions of households in the UK are experiencing both income boosts and increases in essential bills.
Several benefits and wage increases are aimed at alleviating the strain of rising living costs.
Benefits and Wage Increases
This month, several benefits administered by the Department for Work and Pensions (DWP) saw a 1.7% increase. Specifically, the state pension rose by 4.1% due to the triple lock guarantee.
Additionally, the minimum wage saw a significant 6.7% rise, benefiting millions of workers with an additional £1,400 in their paychecks.
Rising Household Bills
However, rising costs are a concern. Bills for energy, water, and council tax have increased substantially.
These hikes, coupled with inflation, are making it harder for families to manage their budgets, especially when combined with upcoming welfare changes.
Welfare System Changes and Universal Credit Impact
The Labour government has proposed a £5 million cut in welfare spending, which will directly impact Universal Credit (UC) rates and eligibility for benefits like Personal Independence Payment (PIP).
The Labour Party’s changes set to take effect next year include adjustments to the UC health element and a reduction in the support for new claimants.
Poverty Statistics and Economic Outlook
A report by the Joseph Rowntree Foundation revealed that in the year 2022/23, 21% of the UK population (roughly 14.3 million people) were living in poverty.
This group includes working-age adults, children, and pensioners, all of whom face increasing financial pressures due to the economic environment.
Financial Support Available for Households
Despite rising costs, several financial supports are available to help households in April 2025. Below is an overview of key benefit payment dates and assistance programs.
Benefit Payment Dates
For the most part, benefit payments will be processed as usual in April. However, during the Easter Weekend, those expecting payments on April 18th (Good Friday) or April 21st (Easter Monday) will receive them a day earlier, on April 17th.
Key Benefits and Payment Dates
| Benefit | Payment Date |
|---|---|
| Universal Credit | April 17 |
| State Pension | April 17 |
| Pension Credit | April 17 |
| Child Benefit | April 17 |
| Disability Living Allowance | April 17 |
| PIP | April 17 |
| Attendance Allowance | April 17 |
| Carer’s Allowance | April 17 |
| Employment Support Allowance | April 17 |
| Income Support | April 17 |
| Jobseeker’s Allowance | April 17 |
The DWP is also in the process of migrating all legacy benefits (such as tax credits and housing benefits) to Universal Credit, with a planned completion by January 2026. It is essential for claimants to check whether they are eligible for these changes.
Pension Payment Dates
Pensions are paid based on the last two digits of the national insurance (NI) number. Payments for those who are entitled to the basic state pension occur on the following schedule:
| NI Number Range | Payment Day |
|---|---|
| 00 to 19 | Monday |
| 20 to 39 | Tuesday |
| 40 to 59 | Wednesday |
| 60 to 79 | Thursday |
| 80 to 99 | Friday |
Will Benefits Increase in April?
In April, most working-age benefits will rise by 1.7% in line with inflation rates. The state pension will rise by 4.1%, which is linked to wage growth.
Upcoming Changes in Universal Credit
In 2026, there will be a £7 weekly increase for Universal Credit claimants. However, the health element of UC will be frozen at £97 until 2029/30, with new claimants receiving just £50 per week starting in April 2026.
Other Available Help
There are several financial relief programs available for households facing financial hardship:
Budgeting Advance Loans
If you’re on Universal Credit and face an emergency, you may be eligible for an interest-free loan of up to:
- £348 for a single person
- £464 for couples
- £812 for those with children
These loans are deducted automatically from Universal Credit payments.
Charitable Grants
Numerous charitable organizations, like Turn2us, offer grants to individuals facing difficulties. These grants provide limited financial support and are typically reserved for specific circumstances, including disability, bereavement, and unemployment.
Energy Provider Assistance
If you’re struggling with your energy bills, contact your energy provider. Providers like Scottish Power, EDF, and British Gas offer financial assistance for eligible customers.
Council Tax Reduction
Certain individuals or families may qualify for council tax discounts of up to 100%, depending on their benefits and circumstances. You can apply through your local council.
Free Childcare
Parents in the UK can access 30 hours of free childcare for children aged 3 to 4, with additional benefits available for children as young as 9 months starting September 2025.
Energy Price Cap: Impact on Households
The energy price cap has increased by 6.4% for the period from April to June, raising the average household’s bill by £9.25 each month. This increase, which follows the third consecutive rise, means higher costs for gas and electricity.
Mental Health and Support Services
The government, along with charities like Samaritans, Mind, and Scope, provides mental health support to individuals struggling due to financial and personal hardships.
Samaritans offers a 24/7 helpline, and Mind provides confidential support for those navigating mental health challenges while dealing with benefits-related issues.
April 2025 brings both financial relief and new challenges. While benefit increases and wage hikes offer some relief, rising household bills and welfare changes present significant obstacles.
It’s important for families and individuals to stay informed about their entitlements and take advantage of available support to manage these financial pressures.
FAQs
How much will Universal Credit increase in 2025?
Universal Credit will see a one-off £7 increase in the standard allowance from April 2026.
What is the new energy price cap for April 2025?
The energy price cap has risen to £1,849 for the period from April to June, reflecting a 6.4% increase.
Can I apply for a council tax reduction in April 2025?
Yes, you can apply for a council tax reduction if you meet the eligibility criteria, which is based on your benefits and household circumstances.