Get all your news in one place.

100’s of premium titles.
One app.

Start reading

Get all your news in one place.

100’s of premium titles. One news app.

Start reading

Liverpool Echo

World

David Bentley & Gemma Jones

DWP Universal Credit, PIP and other benefit claimants set to see pay increase

DWP Universal Credit rese Coffey

The Department of Work and Pensions (DWP) has confirmed that a payment boost to all state benefits will be announced later this year.

Latest figures show just over 31 million DWP claimants in Great Britain, including 5.8 million getting Universal Credit and 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.

Those on these payments should be eligible for the pay uplift. Inflation and wage levels will be key factors for rises in most pay-outs and the "national economic situation" of the cost of living crisis will also be considered when deciding how much some amounts could go up, indicating big increases may be on the cards, reported BirminghamLive.

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. We will know exactly what it is in November.

The DWP has already 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.

Eight million people on low-income benefits are to get £650 in two instalments, with the first due between July 14 and 31. Another six million people, who are in receipt of disability benefits, will get a £150 payment from September. In addition, all households in council tax bands A-D will 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