Changes to the benefits system are set to come into force in 2023. The Department for Work and Pension (DWP) has set out a schedule for a range of updates and changes to benefits, and it seems that there is a particular focus on Universal Credit.
With around 8 alterations to be aware of, keeping up to date is no easy task. Thankfully, Nottinghamshire Live parent publication, the Mirror has outlined the changes and how they impact claimants. The complete list, compiled by Mirror Money provides an 'at a glance' overview of the changes, the dates they are due to come into effect, and what, if anything, you need to do. Here's what they have to say.
Universal Credit and changes to the number of working hours
First on the list is a change that will be actioned from January 2023 and may impact those people claiming Universal Credit. This month, the Administrative Earnings Threshold (AET) of Universal Credit will be raised to a higher level which means more people will have to actively look for work whilst claiming.
At the end of September 2022, the AET was raised to the equivalent of 12 hours on the National Living Wage, at £494 per calendar month for single claimants and £782 per calendar month for couples. From Monday, January 30, 2023, the threshold will be raised to 15 hours on National Living Wage, making it £617 for single people and £988 for couples.
READ MORE: DWP PIP: Medical conditions that may make you eligible including Epilepsy and Alzheimer's
People earning below this threshold will be placed in an intensive work search group where they face more pressure from job centre staff to boost their pay. With the threshold raised, the Government says that an additional 120,000 people will be moved into the intensive work search group.
Good news as benefits rise in April
Following an announcement in the Chancellor's Autumn Statement, most benefits including Universal Credit and Personal Independence Payment (PIP), the state pension and the benefit cap will be uprated by 10.1%.
The full list of benefits which will see an increase in payment from April include:
- Universal Credit
- Housing benefit
- Pension Credit
- Attendance Allowance
- Constant Attendance Allowance
- Carer's Allowance
- Disability Living Allowance
- Employment Support Allowance
- Jobseekers Allowance
- Maternity, paternity, adoption and shared parental pay
- Maternity Allowance
- Income Support
- Personal Independence Payment
- State Pension
- Widows Benefit
- Severe Disablement Allowance
- Industrial Injuries Disablement Benefit
- Industrial Death Benefit
- Incapacity benefits
- Bereavement Benefit
The Universal Credit standard allowance will increase from:
Under 25:
- 2022-23 - single person - £265.31
- 2023-24 - single persons - £292.11
- 2022-23 - joint claimants - £416.45
- 2023-24 - joint claimants - £458.51
Over 25
- 2022-23 - single person - £334.91
- 2023-24 - single person - £368.74
- 2022-23 - joint claimants - £525.72
- 2023-24 - joint claimants - £578.82
Benefit Cap
- Annual cap for couples and families in Greater London - Increasing from £23,000 to £25,323 (Monthly equivalent: £1,916.67 to £2,110.25)
- Annual cap for single adults in Greater London - Increasing from £15,410 to £16,967 (Monthly equivalent: £1,284.17 to £1,413.92)
- Annual cap for couples and families in the rest of the country - Increasing from £20,000 to £22,020 (Monthly equivalent: £1,667.67 to £1,835)
- Annual cap for single adults in the rest of the country - Increasing from £13,400 to £14,753 (Monthly equivalent: £1,116.67 to £1,229.42)
The full list of how much each benefit will be rising can be found on the Government's website.
State pension triple lock back in place
After much debate and speculation, it was confirmed that the state pension will rise by 10.1% after the return of the triple lock. The triple lock promise guarantees the state pension rises by the highest of average earnings, CPI inflation and 2.5%. However, this was downgraded to a double lock to avoid a record 8% increase after the pandemic pushed earnings growth higher as workers returned from furlough. Now the triple lock guarantee is being kept in place, the full state pension will rise from £185.15 to £203.85 per week. The basic state pension will increase from £141.85 per week to £156.20 per week under the triple lock.
Cold Weather Payments replaced in Scotland
While this one doesn't impact residents in England, we've included the replacement of cold weather payments in Scotland on the list for information. So, at the beginning in February, Scotland will replace the Cold Weather Payment with a new benefit called the Winter Heating Payment. Unlike the UK Government's Cold Weather Payment, the Scottish benefit will not be dependent on how cold it gets - instead, it will offer all eligible households an annual payment of £50 to help with energy bills.
Changes to child Disability Living Allowance in Scotland
Again, a change that applies to Scotland but included for information. The Scottish Government intends to have transferred all recipients of child Disability Living Allowance (DLA) to Scottish Child Disability Payment by spring 2023.
The Government will also introduce changes to the rules for the Support for Mortgage Interest (SMI) help, this is a loan to help pay the interest on your mortgage or other home loans for those on certain benefits. The changes will see the waiting period reduced from 9 months to 3 months and there are no changes to the zero earnings rules.
Pressure to meet with work coach
People on Universal Credit who work 15 to 35 hours a week for minimum wage will be required to meet a work coach to increase their hours or earnings. The Government says this change will affect 600,000 Universal Credit claimants, and says it is part of plans to encourage people into better paid work. This was one of a flurry of welfare announcements in the Autumn Statement back in November 2021.
Switch to Scottish Carer's Allowance
The Scottish Government has been working towards delivering a new benefit that will start to replace Carer’s Allowance by the end of this year, with a full roll out expected for Spring 2024. Ccalled Scottish Carer's Assistance, the Scottish Government says it will provide a "improved service" for Scottish carers. The benefit will continue to provide the extra £245.70 Carer's Allowance Supplement payments twice a year, and will increase the monthly payment by around 13%.
More people moved to Universal Credit
The DWP intends to continue its process of moving people on "legacy benefits" onto Universal Credit. The Government says the process, which is called a "managed migration", was restarted in November 2022 after a brief hiatus due to the COVID-19 pandemic and is set to be completed by 2026.
There is an exception for people who get Employment and Support Allowance and do not get Tax Credits as they will be moved onto Universal Credit in 2028. This was confirmed in the Chancellor's Autumn Statement last year.
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