MILLIONS of households on benefits will see their payments rise next year, the government has confirmed.
Universal Credit and many other benefits will rise in line with September's inflation rate of 6.7% next April.
As part of his Autumn Statement, Jeremy Hunt previously explained what will happen with benefits next year.
It came after previous concerns that the government was planing to use a lower inflationary figure, which would've left millions of people hundreds of pounds worse off.
Benefit payments usually rise each year in April, based on how much prices are rising in the previous September.
For instance, last April, benefits rose by 10.1% in line with inflation from September 2022.
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Inflation is higher than wage growth, which means if the government uses wages then payments will not rise by as much – and would be a cut in real terms.
A real-terms pay cut is when your pay rises below the level of inflation.
Benefit amounts vary depending on which type you're on, including Universal Credit, so payments will be different for each person.
Below we explain how much each benefit payment is rising by in April 2024, based on the 6.7% inflation rate.
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It's always worth checking that you're getting all the benefits you're entitled to by using a free benefits checker.
Universal Credit
More than five million people claim Universal Credit, which was first introduced in 2013.
The average family on Universal Credit will see an increase of around £470 a year from April 2024.
This is the equivalent of an increase of around £39 per month.
Under the system, you receive different monthly amounts depending on your circumstances:
- If you're single and under 25 – £292.11
- If you're single and 25 or over – £368.74
- If you live with your partner and you're both under 25 – £458.51 (for you both)
- If you live with your partner and either of you are 25 or over £578.82 (for you both)
If you're single and over 25, your payments will increase from £368.74 to £393.45 – an increase of £24.71.
For couples on Universal Credit, over the age of 25 and with two children (born on or after 6 April 2017), payment will increase from £1,117.98 to £1,193.44 – a rise of £75.46.
Child benefit
Most parents in the UK can claim child benefit, but there are still certain eligibility rules.
You can claim if you're responsible for a child under 16 or under 20 in approved education or training.
Only one person in the household can get child benefit, but there is no limit to how many children you can claim.
There are two child benefit rates – one for the eldest child and another for each further child or children.
The current rate for your eldest or only child is £24 per week. That's £96 a month or £1,248 a year.
You can get £15.90 for every additional child.
With a 6.7% increase, the rate for your eldest or only child will increase from £24 a week to £25.60.
For every additional child, payments would be hiked from £15.90 to roughly £17.
Income support
Income support is extra money for people who don't have enough to live on.
It's a means-tested benefit, which means your income, savings and any sources of cash are considered when deciding how much you'll receive.
How much you get depends on your personal circumstances.
However, if you're single and aged between 16 and 24, your weekly payments start from £67.20.
It will go up to £71.70 a week – a £4.50 a week pay rise, from April 2024.
If you're in a couple, and you're both over 18, your payments will increase from £133.30 to £142.23 – an increase of £8.93.
Pension Credit
Retirees on a low income can get it topped up via Pension credit.
Pension Credit will rise from £201.05 to £218.15 or for couples, from £306.85 to £332.95.
If your income is lower than this, you should be eligible for the benefit.
You could get the "Savings Credit" part of Pension Credit if both of the following apply:
- you reached state pension age before 6 April 2016
- you saved some money for retirement, for example, a personal or workplace pension
This part of Pension Credit will rise from £15.94 a week to £17.29 or for couples, from £17.84 to £19.39.
There are also top-up amounts, for instance, if you're caring for someone else or are disabled.
You can find out more about Pension Credit including how to apply in our guide.
Attendance allowance
Attendance allowance is paid to people who've reached state pension age and need help looking after themselves because of a physical or mental disability.
The lower rate is worth £68.10 a week.
From next April, payments will rise from £68.10 to £72.66 a week – a rise of £4.56.
The higher rate is worth £101.75 weekly, which will rise to £108.56.
Carer's Allowance
You can claim Carer’s Allowance if you care for someone at least 35 hours a week and they get certain benefits.
The rate will increase from £76.75 a week to £81.89.
Disability living allowance
Disability living allowance is made up of two parts: the "care component" and the "mobility component".
To get DLA, you must be eligible for at least one of the components.
If you receive the highest care component right now, you'll get £101.75 a week.
You'll get £26.90 a week if you receive the lowest amount.
From April 2024, your weekly payments will rise from £101.75 to £108.56 – up by £6.81 a week if you're on the highest amount.
If you're on the lowest, your weekly payments will go from £26.90 to £28.70 – up £1.80 weekly.
Employment Support Allowance
Employment Support Allowance (ESA) tops up workers' pay if they're on a low income.
You’ll normally get the ‘assessment rate’ for 13 weeks while your claim is being assessed. This will rose to:
- Under 25 years old, from £67.20 to £71.70
- Age 25 and older, from £77 to £90.50
After you're assessed,you’ll be placed into one of two groups if you’re entitled to ESA.
If you’re able to get back into work in the future, you’ll be put into the work-related activity group. Otherwise, you’ll be put into the support group.
What you'll get will rise to:
- up to £90.50 from £84.80 a week if you’re in the work-related activity group
- up to £138.18 from £129.50 a week if you’re in the support group
There are also further rates for couples, those with disabilities or caring responsibilities.
Jobseekers Allowance
Jobseekers Allowance (JSA) supports those who are out of work while they look for a job.
It is being replaced by Universal Credit but if you are still claiming it you'll see payments go up next year.
For under 25-year-olds, contribution-based and income-based payments will go up from £67.20 a week to £71.70, and from £84.80 to £90.50 a week for those who are older.
There are also further rates for couples, those with children, disabilities or caring responsibilities.
Personal independence payment (PIP)
People with long-term health conditions or disabilities can get extra help from a benefit known as personal independent payment (PIP).
PIP consists of two parts; whether you get one or both depends on how severely your condition affects you.
You may get the mobility part of PIP if you need help going out or moving around. The weekly rate for this is either £26.90 or £71.
Meanwhile, on the daily living part of PIP, the weekly rate is either £68.10 or £101.75 – and you could get both elements.
This means you could get up to £172.75 in total.
If you get the maximum amount, you can expect your payments to rise from £172.75 a week to £184.32 a week from April 2024 – up by £11.57 a week.
State Pension
The full rate of the new State Pension will rise from £203.85 a week to £221.20.
For the basic part of the old state pension, the rate will rise from £156.20 to £169.50.
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