DWP and HMRC April dates as benefits rise but one payment is scrapped

April is a pivotal month for finances as the new tax year kicks off, heralding a time of bill increases and enhanced benefits from the Department for Work and Pensions.

A new survey of 1,500 UK adults conducted in March 2025 found that a staggering 73% are anxious about covering their essential bills this spring, with a quarter (26%) too stressed to even look at their bank balances due to impending price hikes.

Fiona Peake, consumer money expert at , has highlighted crucial dates in April for DWP, HMRC, and state pensions that could affect your finances.

Important April DWP, HMRC and state pension dates

On April 1, the National Living Wage will see a significant boost, according to Fiona: "Many workers will see a pay bump this April, with the National Living Wage rising by 77p to £12.21 per hour for those aged 21 and over. Those in the 18-20 bracket will see a £1.40 rise to £10 per hour, while apprentices will see a rise of £1.15, bringing their hourly wage to £7.55. While this increase is welcome, the ongoing rise in living costs - especially energy bills and council tax - could offset these gains."

Also on April 1, households across the country will be bracing for the Council Tax rise.

Fiona warned: "Council tax bills will rise by almost 5% on average, but the exact increase will depend on your local council and property band. If you're concerned about your bill, check your property band using the government's online tool to make sure you're being charged correctly. There may also be discounts or exemptions available."

Come April 1, water bills are set to surge.

Fiona cautioned: "Water bills will rise by £27.40, bringing the average annual cost to £473. It's worth checking if a water meter could save you money. Many water providers also offer free water-saving devices, so spend time looking into what's available to help reduce your water usage and potentially lower your bill."

The cost of watching television is also going up from April 1.

Fiona advised: "The TV licence fee will rise by £5 to £174.50 from 1 April, though certain groups may qualify for discounts. If you're over 75 and receiving pension credit, you can get a free TV licence, while those who are registered blind can get 50% off. TV licence discounts are a great way to reduce costs if you qualify; make sure to apply for any discounts you're eligible for."

Motorists will feel the pinch too as car taxes go up on April 1.

Fiona highlighted: "Road tax will increase by an average of £30 per year, with electric vehicle owners also facing a rise in charges. It's worth checking how much more you'll need to pay depending on your vehicle."

The end of the tax year looms on April 5. Fiona highlighted critical date for Britons' finances, stating: "The end of the tax year on April 5 marks the final chance to use your ISA allowance. Whether you have an individual or junior ISA, it's a great opportunity to boost your savings tax-free before the deadline."

She then cautioned about the impending State Pension top-up deadline: "If you have gaps in your National Insurance contributions, you can buy back years to boost your state pension. But this opportunity is time-sensitive - after April 5, you'll only be able to top up contributions for the last six years."

Regarding changes to tax credits, Fiona warned: "The tax credit system will end on April 5, with claimants needing to switch to Universal Credit. Those who don't complete the switch will stop receiving their benefits. Make sure to respond to your migration notice from the Department for Work and Pensions. If you're unsure about the process and need support, contact them directly."

As for businesses, she pointed out an approaching hike in costs: "From April 6, employers will face an increase in National Insurance contributions, rising from 13.8% to 15%. The threshold for payments will also drop, which could affect businesses and their employees."

Lastly, Fiona shared some positive news for older citizens: "Good news for pensioners - state pensions will rise by 4.1% from 6 April, adding £472 annual payments. This increase is part of the government's triple lock guarantee, which ensures that pensions rise in line with inflation, wages, or 2.5%, whichever is highest."

On April 6, the Help to Save Scheme will be expanded, as Fiona explained: "The Help to Save scheme will expand on 6 April to include all working Universal Credit claimants. This scheme allows you to save with a bonus of 50p for every £1 you save, which could be a great way for those on low incomes to build up a financial cushion."

Then on April 7, benefits will see a rise, as Fiona stated: "Benefits and Universal Credit payments will rise by 1.7% from April 7. This increase will be applied automatically to your payments, providing some extra support for those who need it most."