The Department for Work and Pensions (DWP) has announced that millions of people receiving benefits from both the DWP and HMRC will see a rise in payment amounts starting from April. Payments are reported to be rising by some 10.1% from next month.
Despite this, however, most people won't see a difference until May, due to payments being made in arrears. Chancellor Jeremy Hunt confirmed in November last year that State Pension, disability and most working age benefits would be uplifted in line with the rate of inflation, the Liverpool Echo reports, at a cost of £11bn to the UK government.
This means that, on average, a family on Universal Credit will benefit by around £600 this year, the Daily Record reports. The benefit cap will also rise in line with inflation, meaning it will increase from £23,000 to £25,323 for families in Greater London and from £20,000 to £22,020 for families nationally.
Read more: DWP: Every government one-off payment people under 30 can claim this March
Meanwhile, 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. Inflation-linked DWP benefits, Tax Credit elements and benefits administered by HMRC will also rise by 10.1%, as will the Basic and New State pensions.
Here is a summary of the new weekly payment rates, beginning in April:
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: £26.90 (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.
Current rates per week
- Eldest or only child - £21.80
- Additional children - £14.45
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.
Read next:
- Full DWP £1,350 cost of living payments - who is eligible and when they arrive
- DWP cost of living spring payment: Those not eligible and why
- DWP cost of living payments: 8 million families to receive first £301 this spring
- DWP list of 21 health conditions that PIP claimants could get up to £4,800 for
- DWP: Universal Credit threshold sees new rules which could affect working hours and benefit payments