From 7 April 2025, recipients of the State Pension will see a 4.1% increase, bringing the new full weekly payment to £230.25. This uplift is part of the government’s ongoing efforts to adjust pensions in line with inflation and rising living costs.

Working-age benefits will also rise by 1.7%, reflecting changes in the Consumer Price Index (CPI). These adjustments aim to provide additional financial support to low-income households, but they also mean businesses will need to factor in potential wage cost increases as employees receive adjusted benefits.