How the government's 2025 Spring Statement could affect your wallet | Tenant news

Chancellor Rachel Reeves has announced changes in the 2025 Spring Statement that could affect income and living costs, so we’ve taken a look at some key points that might impact you.

Universal credit

Universal Credit helps people who are out of work or on a low income with their living costs.

If you're 25 or over, you can currently receive a standard allowance of £393.45 per month, plus an extra £416.19 if you cannot work due to a disability or health condition.

But the government is planning changes that could start from 2026. These are only plans at the moment and could change, so what you hear in the news now might be different later.

Here’s what could change from April 2026:

• The standard allowance will increase for new and existing claimants.
• If you're single and 25 or older, your weekly payment will go up from £92 in 2025/26 to £106 by 2029/30.That means your monthly payment will increase from around £393.45 to £460.14.
• New claimants with health conditions will receive a reduced rate of £50 per week, which will be frozen until 2029-30.

For existing claimants, the health element will remain at £97 per week until 2030, meaning it will not increase with inflation.

The government is also looking at delaying the health element of Universal Credit for people under 22, but no decision has been made yet.

From 2028, the Work Capability Assessment will be removed and eligibility for the health element will instead be based on the Personal Independence Payment (PIP) assessment.

This means that if someone loses their PIP, they may also lose their health element of Universal Credit.

So, what is PIP and how does it work?

Personal Independence Payment (PIP)

PIP is a payment that helps disabled people or anyone with a long-term health condition to manage extra costs. It isn’t means tested which means you can receive it even if you earn a wage or have savings.

The payment is made up of two parts: one for daily living (tasks like cooking or washing) and one for mobility (getting around). Whether you get one or both parts and how much you get depends on how difficult you find everyday tasks and getting around and the difficulty you face is assessed through a points scoring system.

Currently, you can qualify by scoring 8 points overall based across different activities that you cannot do, but from November 2026, you’ll need at least four points in a single activity to qualify for the daily living element.

This means that some people who previously qualified may no longer be eligible.

For more details, visit www.gov.uk/pip.

Carer’s Allowance

Starting from 7 April 2025, working carers can earn up to £196 a week (after deductions) and still qualify for Carer’s Allowance.

This is a £45 increase from the previous limit of £151, bringing it in line with the National Living Wage

National Living wage increase

The government announced an increase in the National Living Wage in the October 2024 Autumn Budget, and that change took effect from 1 April 2025.

The National Living Wage applies to workers aged 21 and over, while the National Minimum Wage, for those aged 18-20, will increase from £8.60 to £10 per hour.

These increases mean that workers in these age groups could see a rise in their hourly pay starting from 1 April 2025.

If you're worried about these changes or think your current benefit entitlement is incorrect, it's important to get help. For free and confidential benefits advice, you can visit Citizens Advice at www.citizensadvice.org.uk/benefits.

You can also speak to our Customer Services Team for a referral to Disability Rights UK for support and advice. Call Habinteg Direct on 0300 365 3100 or email direct@habinteg.org.uk.

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