Budget 2024: Exact amount DWP benefits and state pension will rise by next year

Chancellor Rachel Reeves said today that benefits including Universal Credit, Personal Independence Payment (PIP), and Pension Credit will rise in line with the Consumer Price Index (CPI) for September next year

Millions of Brits will see a pay rise next year as Labour confirmed a benefit uplift in the Budget today.

Chancellor Rachel Reeves said today that benefits including Universal Credit, Personal Independence Payment (PIP), and Pension Credit will rise in line with the Consumer Price Index (CPI) for September. This means some benefits will go up by 1.7%. Today's move was expected, as Reeves previously said back in 2023, that September's inflation figure would uprate benefits under a Labour government as it was "tradition".

In the BBC interview, she said: "If you pick and choose from year to year which inflation number is the cheapest thing to do, then what you see is the gradual erosion of people's incomes."There are nine benefits which the Department for Work and Pensions (DWP) is legally required to increase in line with inflation each April.

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Other benefits, including Universal Credit, normally rise as well, but these are subject to Parliamentary approval. The benefits that are legally required to rise with inflation are:

• Personal Independence Payment (PIP)
• Disability Living Allowance
• Attendance Allowance
• Incapacity Benefit
• Severe Disablement Allowance
• Industrial Injuries Benefit
• Carer's Allowance
• Additional State Pension
• Guardian's Allowance

Universal Credit is the most common Department for Work and Pensions (DWP) benefit being claimed by more than six million people in the UK. The standard allowance for Universal Credit currently sits at £311.68 for single claimants under 25 years and £393.45 for those over. With a 1.7% rise, this will increase to £316.98 and £400.14 respectively.

The standard allowance for joint claimants who are both under 25 is currently £489.23 a month, so the 1.7% rise will take that payment to £497.55 a month. For joint claimants over 25 it sits at £617.60 a month so will rise to £628.10 a month.

State pension payments will also be rising by around 4% next April due to the Triple Lock Promise. First introduced by the Tories and now taken on by Labour, the promise sees state pension payments rise by whatever is highest in the Consumer Price Index (CPI) for September, the average growth for wages between May and July, or 2.5%.

Earlier this month, it was confirmed that the wage growth rate sat at 4.1%, while inflation sat at 1.7%. This means state pensions will rise by 4% in April 2025 and this was confirmed today in the Budget. If you get the old state pension, then you currently get £169.50 a week. From April next year, this will rise to £176.28. For those on the new state pension, you currently get £221.20 a week. From next year, this will rise to £230.05.