The new tax year has started, bringing new challenges for households in the UK. In April, energy prices, council tax, water bills, and more went up. As families work to manage their budgets, May 2025 offers a helpful opportunity: eligible families can receive up to £2,550.26 in tax-free support from DWP payments and HMRC.
With smart planning, families can benefit from increases in Universal Credit, Personal Independence Payment (PIP), Child Benefit, and State Pension. Sometimes, they can claim all these benefits together, providing valuable support during this costly time of year.
At Clarkwell & Co., our skilled London accountants help clients understand their benefit options and maximise their entitlements. Whether you’re self-employed, retired, or part of a growing family, our services can help you claim what you deserve.
Universal Credit May 2025: Bigger Boosts for UK Families
Universal Credit in May 2025 is now more important as families in the UK face low wages and higher costs. Starting in April, the Department for Work and Pensions raised UC payments by 1.7% to match inflation.
The new standard monthly allowances are:
- £316.90 for a single person under 25
- £400.14 for a single person aged 25+
- £497.55 for couples under 25
- £628.10 for couples aged 25+
The real benefit of Universal Credit is its extra support options. You might be eligible for additional help if:
- You have dependent children
- You’re a carer or disabled
- You have limited capacity for work
- You pay rent or mortgage interest
These elements can add up, leading to much higher monthly awards. Claimants should know that a planned cut to the health-related UC element has been postponed until April 2026.
If you’re unsure about your eligibility, the accountants at Clarkwell & Co. in London can help you figure out what you can claim, complete your application, and prepare the necessary documents.
State Pension Increase 2025: Triple Lock Delivers Big Wins
In May, retirees will receive their new monthly pension rates for the first time. The Triple Lock system guarantees that pensions increase based on wage growth, inflation, or 2.5%, whichever is highest. As a result, the state pension increase for 2025 is quite generous.
New rates from April 2025:
- Full new state pension: £230.25 per week (£997.75/month)
- Basic state pension: £176.45 per week
People who retired before 2016 get an older pension but can increase it with Pension Credit, now set at £227.10 per week. This helps low-income pensioners get closer to the new rates.
Many of our clients don’t realise how valuable Pension Credit is or think they can’t get it. At Clarkwell & Co., we provide accounting services for small businesses and pensioners to make sure everyone claims their benefits.
PIP Payment Rates 2025: Up to £812 Monthly for Eligible Claimants
If you or someone you care about has trouble with daily tasks or moving around, Personal Independence Payment (PIP) can help. PIP is a benefit that doesn’t depend on your income. The amount of PIP increased by 1.7% in April 2025, giving more support.
New weekly rates:
- Enhanced daily living: £110.40
- Enhanced mobility: £77.05
If both enhanced components are granted, this amounts to £812.28 per month. The standard rates are lower but still provide important support. PIP is available for anyone aged 16 to state pension age, whether they work or not.
To qualify, you must show how your condition affects your ability to do tasks, not just provide a diagnosis. The application process involves filling out a detailed form, providing medical evidence, and undergoing a functional assessment.
At Clarkwell & Co., a top accounting firm in London, we help clients understand how PIP fits into their overall financial planning, especially when combined with Universal Credit or Carer’s Allowance.
Child Benefit May 2025: Supporting Every Extra Smile
Raising kids is more expensive than ever, but Child Benefit is still an important part of support for families in the UK. Starting in May 2025, Child Benefit will offer higher weekly payments:
- £26.05 for the first child
- £17.25 for each additional child
A household with one child receives £112.88 each month. Larger families can get over £200 monthly. These payments are tax-free and usually come every 4 weeks.
Parents who earn more than £50,000 a year should be aware of the High Income Child Benefit Charge, which might lower the benefit amount. However, many find it better to claim the benefit and repay the charge through self-assessment.
If you’re unsure about the charge or need help filing, our London accountants can help you claim the benefit correctly and legally.
How to Get Government Help May 2025: Step-by-Step Guide
Knowing how to get government help in May 2025 can help you receive thousands in tax-free benefits. Follow these steps:
- Check your eligibility – Each benefit has rules about age, income, health, and family size. Start at GOV.UK.
- Create a Government Gateway account – You need this for most benefit claims.
- Apply online – Fill out all required fields carefully to avoid delays.
- Upload supporting documents – This includes ID, tenancy agreements, or medical records.
- Keep records – Note submission dates, confirmation emails, and payment schedules.
Feeling confused? Our experts at Clarkwell & Co. trusted accountants in London, can help make things easier, especially for clients managing many tasks.
HMRC Support for Families UK: Lesser-Known Help You Might Miss
In addition to benefits from the DWP, HMRC offers support for families in the UK through several often-overlooked programs:
- Marriage Allowance – You can transfer up to £1,260 of your personal allowance to your spouse.
- Tax-Free Childcare – The government contributes 20% toward childcare costs, up to £10,000 each year.
- Working Tax Credit and Child Tax Credit – These are available for some legacy claimants who haven’t switched to Universal Credit yet.
You may not need to fill out new forms to get these types of support. They can start automatically when you apply for other benefits. However, it’s easy to miss them if you don’t know how taxes and welfare work together.
At Clarkwell & Co., we regularly check our clients’ finances to ensure they receive all the benefits they deserve. We also often find opportunities to claim benefits from the past.
How to Claim £2,550 Support UK: Sample Scenario
Let’s visualise how one household might claim £2,550 support UK in May:
- Universal Credit (couple over 25): £628.10
- PIP (both enhanced components): £812.28
- State Pension (new full rate): £997.75
- Child Benefit (1 child): £112.88
Total: £2,550.01 — all tax-free
This situation is unlikely but possible if everyone in the household qualifies. The important part is to understand how benefits work together and to make sure your claim stays within the benefits limit.
Who’s Eligible and What Are the Limits?
Eligibility rules are complicated, and not every household qualifies for all benefits. However, most families can get at least one benefit. Here are the benefit limits for 2025:
- £23,000 per year outside London
- £26,000 per year in London
The cap limits the total amount of specific benefits a household can receive. Some benefits, like PIP and the new state pension, are not affected by this cap.
Seek advice from professionals to prevent claiming too much or exceeding limits. The team at Clarkwell & Co. specialises in benefit planning as part of our accounting services for small businesses and families.
Why Tax-Free Benefits UK 2025 Matter More Than Ever
In today’s economy, tax-free benefits in the UK for 2025 provide security and opportunities, not just financial support. For low-income earners, pensioners, carers, and parents, these benefits help pay for essentials like electricity, school meals, and medical costs.
When used correctly, government benefits can support long-term financial health. However, the process can be complicated, so many families turn to London accountants like Clarkwell & Co. for help.
If you’re unsure about what you qualify for or find the forms confusing, take action now. With deadlines approaching and policy changes expected, it’s a good time to get started.
