How DWP claimants can receive up to £8,983 tax free as…

How DWP claimants can receive up to £8,983 tax free as benefits rise

Millions of people across the UK in receipt of benefits are set to see their payments rise by 10.1 per cent from April.

It comes after the government previously announced all benefits would rise in line with inflation as part of the annual uprating.

And it means that some will be able to claim between £1,398 and £8,983 over the 2023/24 financial year tax-free.

People receiving the Disability Living Allowance (DLA), Child Disability Payments, Personal Independence Payments (PIP) or Adult Disability Payment (ADP) are among those affected.

The Department for Work and Pensions has published a full list of the changes, which you can find here and we set out some of the main points below.

Benefits rise every year and are linked to the rate of Consumer Price Index rate of inflation, which was 10.1 per cent in September last year when the government carried out its latest review.

Those receiving the new state pension in England (reaching retirement age on or after 6 April) will see their payments increase from £185.15 to £203.85 per week.

For people on the old system, payments will increase from £141.85 to £156.20.

Announcing his decision to raise benefits in line with inflation Jeremy Hunt, the chancellor, said it was important to “protect the vulnerable” during the cost of living squeeze.

Mr Hunt told the House of Commons in November: “There have also been some representations to keep the uplift to working age and disability benefits below the level of inflation given the financial constraints we face.

“But that would not be consistent with our commitment to protect the most vulnerable so today I also commit to uprate such benefits by inflation with an increase of 10.1 per cent.

“That is an expensive commitment costing £11 billion.”