The Department for Work & Pensions (DWP) is set to enforce eight changes to benefits in the coming year. Over the next 12 months, those claiming benefits will see changes to things such as working hours, working coaches and payment amounts, to name a few.
It comes following the announcement of payment increases, beginning in April, which will see those claiming PIP and Disability Allowance, among others, paid up to around £691 a month. These changes will see the State Pension and such benefits rise by 10.1%.
Here's a full list of the changes we know so far, as reported by The Mirror.
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Changes to working hours
The Administrative Earnings Threshold (AET) of Universal Credit will be raised this month. The higher level will mean more people will need to actively be looking for work while claiming.
In the latter part 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 January 30, 2023, the threshold will be raised to 15 hours on National Living Wage, making it £617 for single claimants and £988 for couples.
For people earning below this threshold, they will be placed in an intensive work search group where they will face more pressure from Job Centre staff to boost their pay. With the raising of the threshold, the government says that an additional 120,000 people will be moved into the new intensive work search group.
More pressure to meet with work coach
Those people on Universal Credit who work between 15 to 35 hours a week for minimum wage will be required to meet with a work coach in order to increase hours or earnings. The government says this change will affect some 600,000 Universal Credit claimants, with plans to encourage people into better paid work.
This came as one of a number of welfare announcements in the Autumn Statement back in November las year.
Benefits will rise in April
Most benefits including Universal Credit and Personal Independence Payment (PIP), the state pension and the benefit cap will rise by 10.1% from April. The full list of benefits which will see an increase in payment 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
The state pension will rise by 10.1% after the return of the triple lock was confirmed by the Tories. The triple lock promise guarantees the state pension rises by the highest of average earnings, CPI inflation and 2.5%.
But 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
Beginning in February, Scotland will replace the Cold Weather Payment in Scotland with a new benefit called the Winter Heating Payment. The Scottish Government says if you’re currently eligible for Cold Weather Payment from the DWP and your circumstances have not changed, you’ll be eligible for a 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
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.
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. The benefit will be called Scottish Carer's Assistance and 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 over 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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