Carers and Pensioners Get a Boost as 2025 Brings in Key Financial Changes
Hey everyone, let’s talk about something that’s affecting millions of people in the UK right now — the new cost of living changes that kicked in with the start of the 2025 tax year. There’s a lot to unpack here, especially for carers and pensioners who are finally seeing some meaningful updates to their support.
First up, if you're a carer, this news might feel like a long-overdue step in the right direction. The government has raised the threshold for how much you can earn while still claiming carer’s allowance. It used to be £151 a week, but now it's £196 — which is quite a jump. That means more flexibility, more work hours, and more financial breathing room for thousands of people who are balancing employment with caring for a loved one. The allowance itself has gone up too — now it's £83.30 per week.
Stephanie Swann, a mum caring for her disabled six-year-old son, put it perfectly. She said this change gives her just a bit more space — maybe a few extra work hours a week — without losing the benefit. And that small change? It can make a big difference when you're trying to juggle purpose, identity, and financial necessity.
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Now, let's talk pensions. If you're retired or nearing retirement age, you're getting a 4.1% increase in your state pension this year. For those on the newer, flat-rate pension, that’s now £230.25 per week. If you’re on the older basic state pension, it’s gone up to £176.45. This boost is tied to the "triple lock" system, which ensures pensions keep up with either inflation, average wage growth, or 2.5% — whichever is highest.
Benefits like Universal Credit, Personal Independence Payment (PIP), Attendance Allowance, and Disability Living Allowance are also getting a 1.7% bump. It’s not quite as high as current inflation, which sits at 2.8%, but it’s based on last September’s numbers. So while it's not perfect, it’s still something.
One more important point — parents with babies in neonatal care now have the legal right to take up to 12 weeks of paid leave, on top of whatever maternity or paternity leave they already get. That’s a meaningful shift for families facing incredibly stressful early days with their newborns.
Of course, not everything is sunny. The income tax thresholds are still frozen until 2028, which means even if you’re getting a raise at work, you might find yourself paying more tax — or moving into a higher bracket. That’s what they call "fiscal drag."
Still, the overall picture is a bit brighter. Whether you're a carer balancing multiple roles, a pensioner looking for stability, or a parent in a neonatal unit — these updates show some recognition of your situation. It’s not perfect, but it’s progress.
So, what do you think about these changes? Are they enough? Let’s keep the conversation going — because these are the kinds of policies that shape real lives.
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