The Government has committed to providing millions of people with extra cash to offset the financial gulf that the cost of living crisis has created.
In 2023, there is even more help to be provided by the Department for Work and Pensions (DWP), reports Leicestershire Live. These include energy rebates, cost of living payments and various discounts.
Read on below for a rundown of the dates you need to be aware of when it comes to your benefits and extra money.
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January 2023 - DWP payment date changes
Universal Credit and other DWP benefits will be paid earlier than normal for some people due to the New Year bank holidays.
If your payment was due on Monday, January 2, 2023, then it will be paid today (December 30). If it is due on Tuesday, January 3, 2023, it will also be paid on December 30.
January to March 2023 - energy discount
During the winter, the Energy Price Guarantee will save a typical household around £900 in the UK. This is 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 of time, a household bill in the UK will be reduced to approximately £3,000. Based on projections of the undiscounted price of energy, this is expected to save people around £500.
Households have already received £66 in October and November - so £132 worth of discounts in total. Further payments worth £67 will be sent from December 2022 to March 2023.
March 2023 - Spring Statement
The Chancellor, Jeremy Hunt, will deliver a Spring Statement to the House of Commons in March, similar to his Autumn Statement in November. It will regard the Government's economic plans for the upcoming year.
Announcements could include plans for tax payers, savers, homebuyers and pensioners.
April 6, 2023 - benefits and pensions
From April next year, several benefits will increase by 10.1 per cent in line with the September 2022 Consumer Prices Index (CPI). Tax Credits are also expected to increase too.
Below is a full list of DWP benefits that will increase next year, and how much people will get. These figures have been 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
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
From January 1 till March 31 next year, the Ofgem Energy Price Cap level will increase to £4,279. However, this is not what a typical household will pay for their energy bills.
The Energy Price Guarantee will protect people by keeping a bill for households to around £2,500. However, from April 2023 it will be increased to a new level of £3000.
A statement on GOV.UK reads: "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 will bring about inflation rate figures, just like it did in 2022. It is really important as it's used to calculate changes to benefits and tax credits. This year's figure of 10.1 per cent has been used to calculate rises in April 2023.
November - Autumn Statement
Similarly to last month's Autumn Statement, next November's is set to be another big announcement from the Chancellor - it's effectively a mini-budget.
Winter 2023 - £900 cost of living payment
The new cost of living payments are set to be paid in 2023, as announced in Jeremy Hunt's Autumn Statement. The Treasury Committee is pushing for the £900 cost-of-living support payment to be spread out across six instalments through the winter, with a payment each month for six months.
The Government has stated that there will definitely be more than one payment, but no further details have been announced. 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.
The qualifying period is yet to be announced, but the eligible means-tested benefits will include the following:
- 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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