A payment boost will be announced for all state benefits later this year, the Department for Work and Pensions has confirmed. The increase is decided based on inflation and wage levels, as well as the cost of living crisis.
As a result, it is possible that there may be a considerable increase in payment amounts for those of Universal Credit, PIP and other benefits. Each April, all payments get an increase - with a 3.1 per cent increase in place for this financial year (2022/2023). This figure was based on inflation in September 2021 but is well below the current CPI rate of 9.3 per cent.
There are more than 31 million people claiming benefits in Great Britain - including 5.8 million on Universal Credit, 2.8 million each on Housing Benefit and Personal Independence Payment (PIP), plus 1.8 million in receipt of Employment and Support Allowance (ESA). There is some crossover, with 23 million people getting a combination of benefits.
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Liberal Democrat MP Wendy Chamberlain (North East Fife) asked the Secretary of State for Work and Pensions "what factors her Department will take into account when it next makes an assessment of the potential merits uprating of benefits; and whether the energy price cap will be taken into account when making that assessment."
In a written parliamentary answer, DWP minister David Rutley replied: "The Secretary of State for Work and Pensions is required to undertake an annual statutory review of benefits and pensions. She uses the Consumer Prices Index (CPI) in the year to September to measure inflation and average weekly earnings for the period May to July to measure earnings. The Office for National Statistics publish these figures in October.
"The Secretary of State must increase certain benefits by at least the increase in prices or earnings. If she considers it appropriate, having regard to the national economic situation and any other matters which she considers relevant, she may increase others by such a percentage(s) as she thinks fit.
"Her review will commence in the autumn and her decisions will be announced to Parliament in November in the normal way."
That indicates a big rise is coming for state benefits from April 2023, if based on the CPI which is a measure of inflation, BirminghamLive reports. The DWP said it will not add any further across-the-board increases in the meantime to ease the impact of soaring prices of energy, food and fuel, instead offering targeted cost of living measures as announced by the former Chancellor back in February.
Aroung eight million low income households are set to get £650 in two instalments, with the first due between now and July 31. Another six million people, who are in receipt of disability benefits, will get a £150 payment from September.
All households in council tax bands A-D will also get £150 and everyone with a domestic electricity meter will get £400 from their supplier.
MPs questioned Secretary of State for Work and Pensions Therese Coffey on why the Government had decided to make these one-off cost-of-living payments instead of relying on the benefits system.
Ms Coffey said: "We recognise this is intended to be a one-off payment for this year. It is not intended to be a permanent benefit. The Government's recognised the challenges that people are facing. We didn't want to necessarily change ratings beyond what we'd already done with my annual rating review. Some of that would mean locking in, but we come back, frankly, to some of the challenges of our IT systems.
"UC (Universal Credit) is far more agile, our legacy benefits aren't, and it's absolutely critical that people on both legacy benefits and UC were to get this payment. We're confident that we'll get those payments out the door."
What are the current DWP payment rates for 2022-2023?
Below are all the DWP payment rates for 2022-2023, with the previous amount for 2021-2022 in brackets to show how much they went up. A much larger rise is expected for 2023-2024.
Weekly rates are shown, unless otherwise stated.
Attendance Allowance
- Higher rate: £92.40 (from £89.60)
- Lower rate: £61.85 (from £60.00)
Bereavement Benefit
For deaths between April 9, 2001 and April 5, 2017
- Widowed Parent's Allowance: £126.35 (from £122.55)
Bereavement Support Payment
For deaths occurring on or after April 6, 2017
- Standard rate (lump sum) £2,500 (no change)
- Standard rate monthly payments £100 (no change)
- Higher rate lump sum stays at £3,500 (no change)
- Higher rate monthly payments £350 (no change)
Carer’s Allowance
- £69.70 (from £67.60)
Disability Living Allowance
Care Component
- Highest: £92.40 (from £89.60)
- Middle: £61.85 (from £60.00)
- Lowest: £24.45 (from £23.70)
Mobility component
- Higher: £64.50 (from £62.55)
- Lower: £24.45 (from £23.70)
Employment and Support Allowance (ESA)
- Under 25: £61.05 (from £59.20)
- 25 or over: £77 (from £74.70)
Housing Benefit
- Under 25: £61.05 (from £59.20)
- 25 or over: £77.00 (from £74.70)
- Entitled to main phase ESA: £77.00 (from £74.70)
Incapacity Benefit
- Long-term: £118.25 (from £114.70)
Income Support
- Under 25: £61.05 (from £59.20)
- 25 or over: £77.00 from (£74.70)
Industrial death benefit
- Widow's pension higher rate: £141.85 (from £137.60)
- Widow's pension lower rate: £42.56 (from £41.28)
- Widower's pension: £141.85 (from £137.60)
Jobseeker's Allowance
Contribution-based JSA
- Under 25: £61.05 (from £59.20)
- 25 or over: £77.00 (from £74.70)
Income-based JSA
- Under 25: £61.05 (from £59.20)
- 25 or over: £77.00 (from £74.70)
Maternity/Paternity/Shared Parental Allowance/Statutory Parental Bereavement Pay
- Standard rate: £156.66 (from £151.97)
Pension Credit
- Single: £182.60 (from £177.10)
- Couple: £278.70 (from £270.30)
Personal Independence Payment (PIP)
Daily Living Component
- Enhanced: £92.40 (from £89.60)
- Standard: £61.85 (from £60.00)
Mobility Component
- Enhanced: £64.50 (from £62.55)
- Standard: £24.45 (from £23.70)
State Pension
New State Pension
- £185.15 (from £179.60)
Old State Pension
- Category A or B Basic: £141.85 (from £137.60)
Category B (lower) basic pension - spouse or civil partner's insurance: £85 (from £82.45)
Category C or D - non-contributory: £85 (from £82.45)
Widow's Pension
- Standard rate: £126.35 (from £122.55)
Universal Credit (monthly rates shown)
Standard allowance
Single
- Single under 25: £265.31 (from £257.33)
- Single 25 or over: £334.91 (from £324.84)
Couple
- Joint claimants both under 25: £416.45 (from £403.93)
- Joint claimants, one or both 25 or over: £525.72 (from £509.91)
Child amounts
- First child (born prior to 6 April 2017): £290.00 (from £282.60)
- First child (born on or after 6 April 2017) or second child and subsequent child (where an exception or transitional provision applies): £244.58 (from £237.08)
Disabled child additions
- Lower rate: £132.89 (from £128.89)
- Higher rate: £414.88 (from 402.41)
Limited capability for work
- Limited Capability for Work: £132.89 (from 128.89)
- Limited Capability for Work and Work-Related Activity: £354.28 (from £343.63)
Carer amount
- £168.81 (from £163.73)
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