With millions of UK households across the UK needing a boost to their finances just to keep up with rising inflation and the cost of living increases, knowing when and if extra cash might be coming your way is essential. The government has announced and, in some cases, already provided millions of people with extra cash to help offset rising costs with payments in the form of cost of living payments, energy rebates, cold weather payments, warm home discounts and the household support fund. However, there is more to come in 2023.
Of course, while there is some financial good news for some, there are also some changes coming in 2023 that might affect those claiming Universal Credit, Employment and Support Allowance (ESA) and Job Seekers Allowance (JSA). Thanks to Nottinghamshire Live sister publication, Lancs Live, here's everything you need to know about the year ahead including how much you can get, how to apply, and how to check if you are eligible.
Before we get to the full list of dates, you should be aware that The Department for Work and Pensions (DWP) issued an update on a £900 cost of living payment for next year. The payment, announced in November by Chancellor Jeremy Hunt in his Autumn statement, will be given to around eight million people on means-tested benefits. Next year's financial support will also include £150 for those with disabilities and £300 for some pensioners.
There will also be increases to a range of DWP and HMRC benefits with an inflationary rise of 10.1 % from April 2023. This increase will include State Pension and Pension Credit.
Here are all the dates and changes for 2023 that we know so far.
January 2023 - DWP payment date changes
The first date to note is pretty much upon us. Universal Credit and other DWP benefits will be paid earlier than normal for some people due to the New Year bank holidays. Benefit payment dates affected by the changes are ones usually paid between January 2 and 3, 2023. As there is a bank holiday on Monday, January 2, which is a replacement bank holiday for Sunday's New Year's Day, you're likely be paid on Friday, December 30 instead, of Monday, January 2.
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Tax Credit households expecting a payment on Tuesday, January 3 will also be paid early. Expect yours on Friday, December 30, or on Tuesday, January 3 for payments due on Wednesday, January 4 in England and Northern Ireland.
January to March 2023 - energy discount
The third energy bill discount payment, worth £400 in total, began to be sent out from November. The £400 is being split up into six instalments so households have already received £66 in October and November with a £67 payment in December. This will continue in January, February and March 2023 (also each worth £67).
January 2023 - Winter Fuel Payment
Worth up to £600 in total, these combined payments are targeted to help people born before 26 September 1956 with heating bills. The £300 one-off payment is being added to the annual Winter Fuel Payment which will arrive before January 13, 2023. How much you get depends upon circumstances. It is not taxable and does not affect eligibility for other DWP benefits.
March 2023 - Spring Statement
Listen out for the Spring Statement. Jeremy Hunt will deliver a spring statement to the House of Commons in March 2023 to set out the government’s economic plans for the year ahead. Included in this could be key updates for tax payers, savers, homebuyers and pensioners. Last March former chancellor Rishi Sunak didn't announce any changes to Universal Credit or other DWP benefits but depending on the cost of living situation at the time, Mr Hunt could potentially announce an update.
April 6, 2023 - benefits and pensions
Rises in some benefits and pensions kick in from April. As previously announced, inflation-linked benefits and tax credits will rise by 10.1% from April 2023, in line with the Consumer Prices Index (CPI) rate of inflation in September 2022. Jeremy Hunt said the 'expensive commitment' worth £11 billion means 10 million working-age families will see a much-needed increase next year and, on average, a family on universal credit will benefit next year by around £600.
In addition, the benefit cap will rise from £23,000 to £25,323 for families in Greater London and from £20,000 to £22,020 for families nationally. 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.
Here’s a full list of DWP benefits that will increase from April next year and how much you will get, with figures taken from the official Government website.
Universal Credit
If you’re on Universal Credit, the monthly standard allowance will be increasing as follows:
- If you’re single and under 25, the standard allowance will go up from £265.31 to £292.11
- If you’re single and aged 25 or over, the standard allowance will increase from £334.91 to £368.74
- Joint claimants’ who are both under 25 will see their standard allowance will go up from £416.45 to £458.51
- While joint claimants where one or both are 25 or over, will see their standard allowance go up from £525.72 to £578.77
Universal Credit for those with Children
Any extra payments you receive for children will also be going up next year.
- If your first child was born prior to April 6, 2017, you’ll receive £319.29 (as compared with the current rate of £290)
- If your child was born on or after April 6, 2017, or you have a second child and subsequent child, you’ll receive £269.28 (as compared with the current rate of £244.58)
- If you have a disabled child and receive a lower rate addition, your payment will increase from £132.89 to £146.31
- If you have a disabled child and receive a higher rate addition, your payment will increase from £414.88 to £456.78
Universal Credit for a limited capability for work
- If you have limited capability for work, the extra support you'll receive will go up from £132.89 to £146.31
- If you have limited capability for work and work-related activity, the amount will go up from £354.28 to £390.06
Universal Credit for carers
Those caring for a severely disabled person for at least 35 hours a week are entitled to support.
In the year 2023/2024, this amount will rise from £168.81 to £185.86.
Universal Credit for increased work allowance
The higher work allowance for those with one or more dependent children, or limited capability for work, will increase from £573 to £630.87, while the lower work allowance is going up from £344 to £378.74.
Housing benefits
If you’re single, housing benefits will increase as follows:
- For under 25s, it’ll rise from £61.05 to £67.22
- If you’re on main phase ESA, from £77 to £84.78
- For those aged between 25 and state pension credit age, from £77 to £84.78
- For anyone who has reached pension age, £197.10 to £217
For lone parents:
- If you’re under 18, payments will increase from £61.05 to £67.22
- If you’re on main phase ESA, from £77 to £84.78
- If you’re aged between 18 and state pension credit age, from £77 to £84.78
- If you’ve reached state pension age, from £197.10 to £217
For couples:
- If both are aged under 18, payments will go up from £92.20 to £101.51
- If one or both are aged between 18 and state pension credit age, from £121.05 to £133.27
- If you’re on main phase ESA, from £121.05 to £133.27
- If one or both have reached pension age, from £294.90 to £324.68
Pension Credit
Pension Credit exists to support retirees on a low income. From April next year, the rates will rise as follows:
- For those who are single, your income will be topped up to £201.04 instead of the current rate of £182.60
- For couples, it’ll be topped up to £306.85 as compared with the current rate of £278.70
If your income is lower than this, you should be eligible for the benefit. Other top-up amounts for carers can be found here.
Attendance Allowance
If you have a disability severe enough that you require somebody else to look after you, you may be entitled to Attendance Allowance. It’s paid at two rates depending on how much the level of care that you need.
The lower rate will go up from £61.85 to £68.10 The higher rate will go up from £92.40 to £101.73.
Carers Allowance
If you care for someone at least 35 hours a week (and they get certain benefits), you can claim Carer’s Allowance. From April next year, the rate will increase from £69.70 to £76.74 a week.
Disability Living Allowance
The Disability Living Allowance (DLA) is being replaced by Personal Independence Payment (PIP) for disabled people. You can only apply for DLA if you're under 16 and you live in England or Wales. Those who live in Scotland can apply for Child Disability Payment. For adults, further details on the eligibility criteria can be found here. Next year, DLA care component rates will increase as follows:
- The highest rate will go up from £92.40 to £101.73
- The middle rate from £61.85 to £68.09
- The lowest rate from £24.45 to £26.92
DLA mobility component rates will increase as follows:
- The higher rate will go up from £64.50 to £71.01
- The lower rate from £24.45 to £26.92
Employment Support Allowance
This benefit provides support to those on a low income by topping up their pay where needed. Here’s how it’s changing from April next year:
- If you’re under 25 years old, support will increase from £61.05 to £67.22
- If you’re 25 and older, from £77 to £84.78
- Lone parents under 18 will see the rate go up from £61.05 to £67.22
- Lone parents who are 18 or over, from £77 to £84.78
There are also further rates for couples, those with disabilities or caring responsibilities, which can be found here.
Jobseekers Allowance
Jobseekers Allowance (JSA) exists to support unemployed people while they look for a job. It’s being replaced by Universal Credit, but those still claiming JSA will see their payments increase in the new year.
- If you’re under 25, contribution-based and income-based payments will increase from £61.05 a week to £67.22
- If you’re 25 or over, these rates will go up from £77 to £84.78 a week
Rates for couples, those with children, disabilities or caring responsibilities can be found here.
Maternity, paternity, adoption and shared parental pay
The statutory rates for maternity, adoption, paternity and shared parental pay will all increase from £156.66 to £172.48. Payments for parental bereavement will also go up by the same amounts.
Maternity allowance
This will benefit new mums who don't qualify for standard maternity pay. If you qualify, payments will rise from £156.66 a week to £172.48 from April 2023.
Income support
The amount of Income Support you receive will depend on your circumstances. But if you're single and aged between 16 and 24, your weekly payments start from £61.05. This amount will now increase to £67.22 a week from April, 2023.
Personal Independence Payment (PIP)
This payment, known as PIP, helps with extra living costs for those with illnesses or disabilities. From April next year, the rates will change as follows:
- The enhanced daily living component will go up from £92.40 to £101.73
- The standard daily living component will increase from £61.85 to £68.10
- The enhanced mobility component will rise from £64.50 to £71.01
- The standard mobility component will rise from £24.45 to £26.92 for standard
State Pension
The new State Pension rate will increase from £185.15 a week to £203.85. For the old state pension, the basic rate will rise from £141.85 to £156.18.
April 2023 - energy price guarantee
And now to energy and its costs. The Energy Price Guarantee protects consumers reducing the unit cost of electricity and gas so that that a typical dual fuel direct debit bill for January 2023 remains at £2,500. It will be increased from April 2023 to a new level of £3000, with cost-of-living payments of £900 for those on means tested DWP benefits, £300 to pensioners, £150 to those on disability benefits and doubling support for those on LPG or heating oil.
The government said: "This winter (1 October 2022 to 31 March 2023) the Energy Price Guarantee is saving a typical household in Great Britain around £900, compared to undiscounted energy prices under the price cap. As announced in the 2022 Autumn Statement, the Energy Price Guarantee will be extended from April 2023 until April 2024.
"Over this period a typical household bill in Great Britain will be reduced to around £3,000. Based on projections of the undiscounted price of energy, this is expected to save the typical household in Great Britain around £500."
October 2023 - September inflation announcement
September's inflation rate figure is really important as it's used to calculate changes to benefits and tax credits. This year's figure of 10.1% has been used to calculate rises in April 2023. The triple lock also means that each year the state pension increases by the largest of the following three figures: 2.5%, the rate of inflation, or the rate of earnings growth. It’s the September inflation figure that is used in this comparison.
November - Autumn Statement
The Autumn Statement is another big statement from the chancellor as it's effectively a mini-budget. November 2022's Autumn Statement provided critical updates on energy bills, inflation, taxes and new DWP cost of living payments.
Winter 2023 - £900 cost of living payment
A series of new cost of living payments are set to be paid out in 2023 following their announcement in Jeremy Hunt's Autumn statement. The chancellor announced a £26 billion package to help those through the ongoing cost of living crisis, including a £150 payment for those on disability benefits, £300 for pensioner households, and £900 for those on means-tested benefits.
Some payments announced for Winter 2022/2023 were one-off payments. The DWP has indicated that some of those who receive means-tested benefits via the DWP or HM Revenue and Customs won't be eligible for extra support in 2023/24.
While the qualifying period for the £900 payment has still to be announced, eligible means-tested benefits include:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Working Tax Credit
- Child Tax Credit
Those who only receive Tax Credits will be paid the support separately by HMRC, while anyone who has Tax Credits alongside a qualifying benefit from the DWP will receive the payment from the DWP. This payment will be tax-free and not count towards the benefit cap, and it will not have any impact on existing benefits or awards.
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