Millions of people across the UK who claim benefits from the Department for Work and Pensions (DWP) will see the amount they receive increase next month by 3.1%.
Some amounts set by the UK Government Department will remain the same, however.
As reported by Birmingham Live, the rises were set in September 2021 and were determined by the Consumer Price Index at the time following the suspension of the triple lock rule.
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As part of the increases coming into force in April, the New State Pension will rise from £179.60 to £185.15, while the Universal Credit standard allowance for a couple under 25 will go up to £416.45 and the allowance for a couple over 25 will increase to £525.72.
Additionally, the standard daily living component for Personal Independence Payment (PIP) will rise from £60 to £61.85 and the standard mobility component will increase to £24.45 from £23.70.
Some DWP payments, thresholds and deductions will not rise in April and will instead remain the same.
While frozen levels of certain deductions will help families struggling amid the cost of living crisis, the lack of any rise to other payments and pay limits will not be welcomed.
Frozen payment levels 2022/2023
All of the following will remain at the same level in 2022/23 as they were in 2021/22.
1. Benefit Cap
This is the maximum amount of benefits that can be awarded per household.
Level of benefit cap (outside of Greater London)
- Couples (with or without children) or single claimants with a child of qualifying age - £384.62 a week, £1,666.67 a month, £20,000 a year
- Single adult households without children - £257.69 a week, £1,116.67 a month, £13,400 a year
2. Bereavement Support Payment
For deaths occurring on or after April 6, 2017.
- Standard rate (lump sum) - £2,500
- Standard rate monthly payments - £100
- Higher rate (lump sum) - £3,500
- Standard rate monthly payments - £350
3. Child Maintenance deduction
- Standard deduction - £8.40 a week
4. Fine or compensation order deduction
- Standard rate - £5 a week
- Lower rate - £3.75 a week
5. Child Dependency addition
- Weekly rate - £11.35 (payable with State Pension, Widowed Mother's Allowance or Widowed Parent’s Allowance, short-term Incapacity benefit higher rate or over State Pension age, long-term Incapacity Benefit, Carer's Allowance, Severe Disablement, Unemployability Supplement)
- Weekly rate where payable for the eldest child for whom Child Benefit is also paid - £8 (Reduced by the difference between the Child Benefit rates, less £3.65, for the eldest and subsequent children)
6. Universal Credit childcare costs amount
- Maximum for one child - £646.35 a month
- Maximum for two or more children - £1108.04 a month
7. Universal Credit child maintenance deduction
- Standard deduction - £36.40 a month
8. Universal Credit capital limits
- Upper limit - £16,000
- Amount disregarded - £6,000
- Assumed income from capital for every £250 or part thereof, between capital disregard and upper capital limit - £4.35
This means that any capital or savings under £6,000 is disregarded when determining how much Universal Credit you should receive.
Benefits advisors at Turn2us explained that an amount over £6,000 but under £16,000 is treated as if it gives you a monthly income of £4.35 for each £250, or part of £250, regardless of whether it does or not. So if you have £6,300 in a savings account, £6,000 of it will be ignored and the other £300 will be treated as giving you a monthly income of £8.70.
If you have capital/savings over £16,000 as a single claimant or as a couple you will not be entitled to any Universal Credit. Some capital can be ignored when working out if you qualify for cash.
If you are a member of a couple but the other person is not claiming Universal Credit, their capital/savings will still be taken into account.
9. Capital limits for other benefits
These are the rules common to Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance and Housing Benefit unless otherwise stated.
- Upper limit - £16,000
- Amount disregarded - £6,000
- Child disregard (not Employment and Support Allowance or Housing Benefit) - £3,000
- Amount disregarded (living in residential care or a nursing home) - £10,000
Rules common to Pension Credit and Housing Benefit:
- Upper limit for Pension Credit and those getting Housing Benefit and Pension Credit Guarantee Credit - No limit
- Amount disregarded for Pension Credit and Housing Benefit for those above the qualifying age for Pension Credit - £10,000
- Amount disregarded (living in residential care or a nursing home) - £10,000
10. Pension income threshold
- Pension income threshold for Incapacity Benefit - £85
- Pension income threshold for contribution-based Employment and Support Allowance - £85
Campaign groups such as the Child Poverty Action Group (CPAG) have called for a larger rise in benefits this April, as well as the removal of the benefit cap.
Chief executive of Child Poverty Action Group Alison Garnham stated that the majority of people affected by the benefit cap are families with children — commonly in areas of high housing costs — and of these most are headed by a single parent, more than half of whom have at least one child aged under five.
She also said it is difficult for single parents with young children to escape the cap by working more.
The level of the benefit cap hasn’t been revised since 2016 so the shortfall in the social security support that capped families receive, compared to what they need, has grown accordingly, CPAG argued.
A DWP spokesperson said: "The increase in benefit rates adds to a substantial support package for those on the lowest incomes, which includes putting an average of £1,000 more per year into the pockets of working families via changes to Universal Credit and boosting the minimum wage by more than £1,000 a year for full-time workers.
"Meanwhile, the benefit cap, up to the equivalent salary of £24,000, ensures fairness for hard-working taxpaying households and a strong work incentive, while also providing a much-needed safety net of support."
Officials say there is a statutory duty to review the levels of the cap at least once in each Parliament and that this will happen "at the appropriate time" but cautioned that the current, unusual economic period would need to be taken into account.
The proportion of households impacted by the benefit cap remains low in comparison to the overall number claiming Universal Credit, the Government says.
