Spring has officially arrived, ushering in not only blooming flowers but also the start of a new financial year. For millions across the UK, April brings a mixed bag of financial changes — from wage increases and pension boosts to rising living costs and shifting welfare policies.
Staying informed is essential, especially as April often marks the time when household bills rise and key government updates take effect.
Table of Contents
What’s Changed for UK Households This April?
Income Increases: What You’re Likely to Receive
April 2025 has brought several welcome income boosts:
- All benefits administered by the DWP have increased by 1.7%, in line with inflation.
- The State Pension rose by 4.1%, thanks to the triple lock — giving pensioners an annual uplift of around £472.
- The National Minimum Wage rose by a significant 6.7%, equating to a £1,400 annual pay rise for full-time workers.
These changes aim to offset some of the cost-of-living pressures faced by working and non-working households alike.
But Costs Are Rising Too: A Look at Household Bills
Unfortunately, these income increases are being met with widespread cost hikes:
- Energy prices are up again, with Ofgem’s price cap increasing by 6.4%, now at £1,849 per year.
- Water bills, council tax, and other essential services are also more expensive in 2025.
Changes to Welfare and Universal Credit: What You Need to Know
Labour’s Welfare Reform Plans and Cuts
The government recently announced £5 million in welfare cuts, which will change how some benefits are distributed starting next year. Key changes include:
- Universal Credit standard allowance will see a £7 per week rise from April 2026, increasing the base rate from £91 to £98.
- The health element of Universal Credit will be frozen at £97 starting 2026, with a significant reduction to £50 for new claimants from that date.
If you think you may qualify, it’s advised to apply before these changes take effect.
Benefit and Pension Payment Dates for April 2025
Important Dates to Know
Most benefits will be paid as usual, but the Easter weekend will shift some dates:
- If you’re due to be paid on Friday 18 April or Monday 21 April, you’ll be paid early — on Thursday 17 April.
Which Benefits Are Affected?
- Universal Credit
- State Pension
- Pension Credit
- Child Benefit
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Attendance Allowance
- Carer’s Allowance
- Employment and Support Allowance (ESA)
- Income Support
- Jobseeker’s Allowance (JSA)
State Pension Payment Days Based on National Insurance Numbers
- 00 to 19: Monday
- 20 to 39: Tuesday
- 40 to 59: Wednesday
- 60 to 79: Thursday
- 80 to 99: Friday
Other Support Available in April 2025
Budgeting Advance Loans for Universal Credit Claimants
If you’re in an emergency financial situation and on Universal Credit, you can apply for a budgeting advance loan:
- £348 if single
- £464 if part of a couple
- £812 if you have children
From April 2025, the maximum amount DWP can deduct from your Universal Credit to repay debts is being lowered from 25% to 15%, giving claimants more breathing room.
Charitable Grants and Where to Look
For those in hardship, a number of charitable grants may be available depending on your personal circumstances. These include support for:
- Disabled individuals
- Carers
- Bereaved families
- Students
- Unemployed persons
Check eligibility through charities like Turn2us, which provides a free grant-finding tool online.
Help With Energy Bills
Several UK energy suppliers provide targeted assistance:
- Scottish Power
- EDF
- E.ON
- Octopus Energy
British Gas even offers grants of up to £2,000 to qualifying customers — including those not with British Gas — through their Energy Trust.
Council Tax Support and Discounts
If you’re on a low income or receiving certain benefits, you could qualify for up to 100% off your council tax.
Even if you don’t meet standard criteria, you can apply for a discretionary reduction through your local council if facing severe financial hardship.
Free Childcare Expansions in 2025
All working parents in the UK are currently entitled to 30 hours of free childcare for 3–4-year-olds. Recent expansions now include:
- 15 hours for 2-year-olds from April 2024
- 15 hours for children as young as 9 months from September 2024
- Full 30-hour entitlement for all under-fives starting September 2025
Parents must apply online and reconfirm eligibility every three months.
Energy Price Cap Update: What’s Happening Now?
Ofgem’s energy price cap has risen to £1,849 — a 6.4% increase for the period from April to June 2025.
This marks the third consecutive rise, adding around £9.25 per month to the average bill.
UK Pensions and Benefits Set to Decrease by £459 a Year Key Details You Should Know
How Pension Income Is Taxed in the UK: Strategies to Minimize Pension Tax
Two Child Benefit Cap: Understanding the Policy and Recent Amendments
How much tax will I pay on my pension in UK & How Can You avoid it?
UK State Pension: What Is It, How Much Do You Get, and Can You Boost It?
Mental Health Support for Those Facing Financial Stress
If financial strain is impacting your mental health, free support is available:
- Scope: Disability support forum and advice
- NHS England: Offers an online mental health triage service
Final Thoughts: Take Action Now to Maximise Your Income
While higher incomes and expanded support schemes offer some relief this spring, the rising cost of living means it’s more important than ever to claim what you’re entitled to.
Check in with your local council, energy provider, and charities — and apply early for benefits and childcare support if you think you qualify. Staying informed and proactive could make a crucial difference in the months ahead.