Millions of benefit claimants are set to see an increase in their payments from next week, when the new 2023/24 rates come into effect. The DWP is set to increase benefit rates in April in line with September's inflation (consumer price index) figure of 10.1%.
The news will come as a major relief to households on low incomes who had been fearing a below-inflation increase to rates before Chancellor Jeremy Hunt revealed the news in his autumn statement back in November. Benefits are normally uplifted in line with inflation, but there had been fears this may not happen due to high inflation and ministers refusing to confirm what the new rates would be.
The news will help ease the financial burden for millions of people being impacted by the cost of living crisis. However, some have warned increased deductions from April for claimants with debt or arrears will leave some no more than a few pounds better off.
Read more: National Minimum Wage: How much extra you will get when wages increase on April 1
Here is everything you need to know about the increase to benefits in the UK, which will come into effect on Monday, April 10. To get all the latest money-saving news straight to your inbox twice a week sign up here.
What will the new benefit rates be for 2023/24?
Here are all the benefits and their new weekly rates for 2023/24 versus what they are now:
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: £26.95 (from £24.45)
Mobility component
Higher: £71.05 (from £64.50)
Lower: £26.95 (from £24.45)
Employment and support allowance (ESA)
Under 25: £67.25 (from £61.05)
25 or over: £84.80 (from £77.00)
Housing benefit
Under 25: £67.25 (from £61.05)
25 or over: £84.80 (from £77.00)
Entitled to main phase ESA: £84.80 (from £77.00)
Incapacity benefit (long-term)
April 2023 rate: £130.20 (from £118.25)
Income support
Under 25: £67.25 (from £61.05)
25 or over: £84.80 from (£77.00)
Jobseeker’s allowance (contributions based)
Under 25: £67.25 (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: £172.50 (from £156.66)
Pension credit
Single: £201.05 (from £182.60)
Couple: £306.85 (from £278.70)
Personal independence payment (PIP)
- Enhanced: £101.75 (from £92.40)
- Standard: £68.10 (from £61.85)
Mobility component
Enhanced: £71.05 (from £64.50)
Standard: £26.95 (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: £139.15 (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)
What are deductions and what will they be?
Money can be taken out of benefits to repay debts. This can include sums someone owes on rent, energy or water bills, council tax, unpaid fines, and child maintenance. Earlier this year, Citizens Advice Scotland estimated deductions from benefits could add up to an average of £62 per month from April, leaving people with just £3.50 extra.
Households are facing other increased costs from April including higher energy bills despite the energy price guarantee remaining the same, higher council tax in most areas of Wales and increased rail fares which are already in effect since March. You can read more about rail prices here.
Here are the new deductions for 2023/24:
Third party deductions
5% of universal credit standard allowance can be deducted for debts or arrears owed to people or organisations like energy firms, local authorities and landlords. This is how amounts will change for different categories of claimants:
- Single claimant under 25 - increasing from £13.27 to £14.61
- Single claimant aged 25 or over - increasing from £16.75 to £18.44
- Joint claimants both under 25 - increasing from £20.82 to £22.93
- Joint claimants, one or both 25 or over - increasing from £26.29 to £28.94
Deductions for rent and service charges
Minimum deductions for rent and service charges included in rent are 10% of universal credit standard allowance. Here's how those deductions will go up:
- Single claimant under 25 - increasing from £26.53 to £29.21
- Single claimant aged 25 or over - increasing from £33.49 to £36.87
- Joint claimants both under 25 - increasing from £41.65 to £45.85
- Joint claimants, one or both 25 or over - increasing from £52.57 to £57.88
The maximum deduction for rent and service charges included in rent is 20% of the universal credit standard allowance. Here's how that amount will rise in April:
- Single claimant under 25 - increasing from £53.06 to £58.42
- Single claimant aged 25 or over - increasing from £66.98 to £73.75
- Joint claimants both under 25 - increasing from £83.29 to £91.70
- Joint claimants, one or both 25 or over - increasing from £105.14 to £115.76
Overall maximum deduction rate
This is set at 25% of the universal credit standard allowance. Here is how that will change in April:
- Single claimant under 25 - increasing from £66.33 to £73.03
- Single claimant aged 25 or over - increasing from £83.73 to £92.19
- Joint claimants both under 25 - increasing from £104.11 to £114.63
- Joint claimants, one or both 25 or over - increasing from £131.43 to £144.71
Fraud overpayments, recoverable hardship payments and administrative penalties
These are also set at 25% of the universal credit standard allowance:
- Single claimant under 25 - increasing from £66.33 to £73.03
- Single claimant aged 25 or over - increasing from £83.73 to £92.19
- Joint claimants both under 25 - increasing from £104.11 to £114.63
- Joint claimants, one or both 25 or over - increasing from £131.43 to £144.71
Ordinary overpayments
Ordinary overpayments and civil penalties are set at 15% of the universal credit standard allowance:
- Single claimant under 25 - increasing from £39.80 to £43.82
- Single claimant aged 25 or over - increasing from £50.24 to £55.31
- Joint claimants both under 25 - increasing from £62.47 to £68.78
- Joint claimants, one or both 25 or over - increasing from £78.86 to £86.82
Ordinary overpayments and civil penalties can rise to 25% of the universal credit standard allowance if a claimant's and/or partner's earnings are over the work allowance:
- Single claimant under 25 - increasing from £66.33 to £73.03
- Single claimant aged 25 or over - increasing from £83.73 to £92.19
- Joint claimants both under 25 - increasing from £104.11 to £114.63
- Joint claimants, one or both 25 or over - increasing from £131.43 to £144.71
Daily reductions for sanctions
When benefits are cut due to a sanction, the highest reduction in payment is 100% and will rise as follows:
- Single under 25 - increasing from £8.70 to £9.50
- Single 25 or over - increasing from £11 to £12
- Joint claimants both under 25 (per sanctioned claimant) - increasing from £6.80 to £7.50
- Joint claimants, one or both 25 or over and one is sanctioned (per sanctioned claimant) - increasing from £8.60 to £9.40
For a sanction that results in a 40% benefit reduction, amounts taken off payments will change as follows:
- Single under 25 - increasing from £3.40 to £3.80
- Single 25 or over - increasing from £4.40 to £4.80
- Joint claimants both under 25 (per sanctioned claimant) - increasing from £2.70 to £3
- Joint claimants, one or both 25 or over (per sanctioned claimant) - increasing from £3.40 to £3.70
Child maintenance deduction
- Staying the same at £36.40
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