Millions across the UK could see a rise in their benefit payments next year. Almost 20 million families and 40 million individuals across the nation in receipt of State Pension of benefits from the Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC) could be impacted.
The rise of 10.1% will be welcome news for many amidst the cost of living crisis. The Chancellor of the Exchequer, Jeremy Hunt, made the commitment in his Autumn Statement when he confirmed that state pension, disability and working age benefits would be uprated from April in line with the rate of inflation in September.
Mr Hunt said there had been some arguments to uplift working age and disability benefits below the level of inflation, but said that “would not be consistent with our commitment to protect the most vulnerable”. He added that the 10.1% increase was: "an expensive commitment, costing £11 billion" continuing, "but it means 10 million working age families will see a much needed increase next year, which speaks to our priorities as a Government and our priorities as a nation.
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On average, a family on Universal credit will benefit next year by around £600, and to increase the number of households who can benefit from this decision I will also exceptionally increase the benefit cap with inflation next year.”
This means the benefit cap will rise from £23,000 to £25,323 for families in Greater London and from £20,000 to £22,020 for families nationally, according to a report by Daily Record . Lower caps for single households without children will rise from £15,410 to £16,967 in Greater London and from £13,400 to £14,753 nationally.
The proposed new DWP payment rates for the period 2023 until 2024 are detailed below thanks to the publication.
Proposed new DWP payment rates from 2023 to 2024
Subject to Parliamentary approval, inflation-linked DWP benefits, Tax Credit elements and benefits administered by HMRC will rise by 10.1% from April 2023. The Basic and New State Pensions will also be uprated by 10.%, in line with the Triple Lock.
While no official list of new payment rates has not been released yet, below are examples of how the uprating will impact benefit amounts. Weekly rates are shown, unless otherwise stated and have been rounded as per the UK Government policy.
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: £26.95 (from £24.45)
Mobility component
Higher: £71.05 (from £64.50)
Lower: £26.95 (from £24.45)
Employment and Support Allowance (ESA)
Under 25: £67.25 (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: £67.25 (from £61.05)
25 or over: £84.80 from (£77.00)
Jobseeker’s Allowance (contributions based)
Under 25: £67.25 (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: £172.50 (from £156.66)
Pension Credit
Single: £201.05 (from £182.60)
Couple: £306.85 (from £278.70)
Personal Independence Payment (PIP) / Adult Disability payment (Scotland)
Daily Living Component
Enhanced: £101.75 (from £92.40)
Standard: £68.10 (from £61.85)
Mobility Component
Enhanced: £71.05 (from £64.50)
Standard: £26.95 (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: £139.15 (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)
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