State pensions and disability and working age benefits will all be increased in line with inflation next year, Jeremy Hunt has confirmed. It means payments will go up by 10.1% for the estimated 19.2 million families and 39.8 million individuals currently receiving the pension or benefits.
The Chancellor confirmed the move in his autumn budget statement in the Commons yesterday (Nov 17). He said: "That is an expensive commitment, costing £11 billion, but it means 10 million working age families will see a much-needed increase next year, which speaks to our priorities as a government and our priorities as a nation.
"On average, a family on universal credit will benefit next year by around £600. And to increase the number of households who can benefit from this decision, I will also exceptionally increase the benefit cap with inflation next year."
READ MORE: Autumn Statement: Key change for 600,000 on universal credit announced
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.
Mr Hunt had told MP there had been some arguments to uplift working age and disability benefits below the level of inflation, "given the financial constraints we face". But he said that "would not be consistent with our commitment to protect the most vulnerable".
Proposed new DWP payment rates from 2023 to 2024
The uprating of benefits and state pensions by 10.1% will take effect from April next year, subject to Parliamentary approval. No official list of new payments rates has been released yet, but indicative figures showing how the rise will impact benefit amounts are below, as reported by the Daily Record.
Weekly rates are shown, unless otherwise stated. Figures 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 (up 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) / Adult Disability payment
Daily Living Component
- 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)
Many groups expressed relief that benefits will rise in line with inflation, but they warned many vulnerable people will still fall through the cracks. Rebecca McDonald, chief economist at the Joseph Rowntree Foundation, said: "It will be a huge relief to families on benefits that they are not facing what would have amounted to a historic cut.
"In taking this stand, the Government has acknowledged that people cannot withstand benefits being eroded any further. However families are facing the worst winter many will remember and can’t wait for April – they need the help now to get through a winter of soaring costs."
Dame Clare Moriarty, chief executive of Citizens Advice, said: "(Yesterday's) announcement will go some way to help people on the lowest incomes stay afloat during this economic storm. Support with energy bills, extending the cost of living payments and uprating benefits with inflation will offer much-needed reassurance for some, but many will still fall through the cracks."
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