Millions of people who receive benefits will have more money in their pockets from Monday (April 10). A total of around 19.2million families and 39.8million individuals receive either a State Pension or some form of benefit from the Department for Work and Pensions (DWP) and HMRC across Wales, England and Scotland.
This week, most payments will rise by 10.1%. It may take until May for the increase to show in bank accounts, as payments are made in arrears.
The increase was confirmed in the Spring Budget by Chancellor Jeremy Hunt. The increase of 10% is in line with the September rate of inflation and it's costing the UK government £11billion.
It will be welcome relief to millions of households battling the rising cost of living. The increase, which is an annual uprating, means that a family receiving Universal Credit will get around £600 more this year.
The benefit cap is also rising in line with inflation, increasing from £20,000 to £22,020 for families and from £23,000 to £25,323 in London. For those without children, the cap is up from £13,400 to £14,753 nationally - £15,410 to £16,967 in Greater London, reports the Daily Record.
New payment rates from April 10, 2023
Inflation-linked DWP benefits, Tax Credit elements and benefits administered by HMRC will rise by 10.1 per cent from April 10, 2023. The Basic and New State Pensions will also be uprated by 10.1 per cent, in line with the Triple Lock.
Subscribe here for the latest news where you live
The DWP has published a full online guide to the increases for State Pensions, benefits and the increased benefit cap on the GOV.UK website here.
Below is a summary of the new weekly payment rates, weekly rates are shown, unless otherwise stated.
Attendance Allowance
- Higher rate: £101.75 (from £92.40)
- Lower rate: £68.10 (from £61.85)
Carer’s Allowance
- April 2023 rate: £76.75 (from £69.70)
Disability Living Allowance / Child Disability Payment
Care Component
- Highest: £101.75 (from £92.40)
- Middle: £68.10 (from £61.85)
- Lowest: £26.90 (from £24.45)
Mobility component
- Higher: £71.00 (from £64.50)
- Lower: £26.90 (from £24.45)
Employment and Support Allowance (ESA)
- Under 25: £67.20 (from £61.05)
- 25 or over: £84.80 (from £77.00)
Incapacity Benefit (long-term)
- April 2023 rate: £130.20 (from £118.25)
Income Support
- Under 25: £67.20 (from £61.05)
- 25 or over: £84.80 from (£77.00)
Jobseeker’s Allowance (contributions based)
- Under 25: £67.20 (from £61.05)
- 25 or over: £84.80 (from £77.00)
Jobseeker’s Allowance (income-based)
- Under 25: £67.25 (from £61.05)
- 25 or over: £84.80 (from £77.00)
Maternity/Paternity/Shared Parental Allowance
- Standard rate: £172.48 (from £156.66)
Pension Credit
- Single: £201.05 (from £182.60)
- Couple: £306.85 (from £278.70)
Personal Independence Payment (PIP) / Adult Disability payment
Daily Living Component
- Enhanced: £101.75 (from £92.40)
- Standard: £68.10 (from £61.85)
Mobility Component
- Enhanced: £71.00 (from £64.50)
- Standard: £26.90 (from £24.45)
State Pension
- Full New State Pension: £203.85 (from £185.15)
- Basic Old State Pension (Category A or B): £156.20 (from £141.85)
Widow’s Pension
- Standard rate: £139.10 (from £126.35)
Universal Credit (Monthly rates shown)
Standard allowance
- Single under 25: £292.11 (from £265.31)
- Single 25 or over: £368.74 (from £334.91)
Couple
- Joint claimants both under 25: £458.51 (from £416.45)
- Joint claimants, one or both 25 or over: £578.82 (from £525.72)
Child Benefit payment rates for 2023/24
There are two Child Benefit rates in place.
New rates per week - from April 2023
- Eldest or only child - £24.00
- Additional children - £15.90
Guardian's Allowance rates from April 2023
The new weekly rate for Guardian's Allowance will be £20.40 - an increase of £1.85 on the current 2022/23 rate of £18.55.
Working Tax Credit rates for 2023/24 (yearly amount shown)
Working Tax Credit is paid to people who are in work and on a low income – it does not matter whether you are an employee or self-employed, and you do not need to have children to get the payment.
Child Tax Credit is paid to people who have children and is paid in addition to Child Benefit and the Scottish Child Payment - you do not have to be working to receive it.
Here are the details of the proposed new payment thresholds and rates for the 2023/24 financial year.
Working Tax Credit income threshold
- 2023/24 rate: £7,455
- 2022/23 rate: £6,770
Basic element
- 2023/24 rate: £2,280
- 2022/23rate: £2,070
Couples and lone parent element
- 2023/24 rate: £2,340
- 2022/23 rate: £2,125
30-hour element
- 2023/24 rate: £950
- 2022/23 rate: £860
Disabled worker element
- 2023/24 rate: £3,685
- 2022/23 rate: £3,345
Severe disability element
- 2023/24 rate: £1,595
- 2022/23 rate: £1,445
Child Tax Credit rates for 2023/24 (yearly amount shown)
Child Tax Credit income threshold
- 2023/24 rate: £18,725
- 2022/23 rate: £17,005
Family element
- 2023/24 rate: £545 (no change)
- 2022/23 rate: £545
Child and qualifying young person element
- 2023/24 rate: £3,235
- 2022/23 rate: £2,935
Child disability element
- 2023/24 rate: £3,905
- 2022/23 rate: £3,545
Severely disabled rate of the child disability element
- 2023/24 rate: £1,575
- 2022/23 rate: £1,430
You can read the full list of proposed payment rate and threshold changes from HMRC on the GOV.UK website here.