Major Changes to Universal Credit and Benefits in 2025
- Pay rises for Universal Credit, pensions, and Carers Allowance
- End of Household Support Fund in March 2025
- 30 hours free childcare for toddlers starting September
2025 brings a host of updates to Universal Credit and benefits systems that claimants need to know. From benefit increases to shifts in eligibility and support schemes, here are the key changes to expect:
Household Support Fund Ends
Deadline: March 31, 2025
Vulnerable households must claim support from their local council before the fund closes.
Tax Credit Services Replaced
Deadline: April 5, 2025
Tax credits will transition to Universal Credit, impacting those on legacy benefits.
National Insurance Contributions Deadline
Deadline: April 5, 2025
Workers can backdate contributions for 2006–2016 to maximise their state pensions.
Pay Increases for Pensions and Benefits
Date: April 7, 2025
State Pension rises to £230.30 per week (+4.1%).
Universal Credit and other benefits rise by 1.7%.
Carers Allowance Weekly Limit
Change: From £151 to £181 per week in April 2025.
Over-earnings could result in losing all benefits.
Free Childcare Expansion
Start Date: September 2025
Parents of children aged 9 months+ eligible for 30 free hours per week.
Winter Fuel Payment Changes (Scotland)
Date: November 2025
Becomes Pension Age Winter Heating Payment, offering £100–£300 based on age and benefits.
Managed Migration Notices Completed
Deadline: December 2025
All legacy benefits will move to Universal Credit, with recipients notified via Migration Notices.
Tom Church, Co-Founder of LatestDeals.co.uk, commented: “These changes mark a significant shift in how households manage their benefits and budgets in 2025. Staying informed is vital to make the most of available support.”