On Monday, benefits and pensions will increase by 3.1%, which is technically the biggest rise to welfare payments for many years but will leave people worse off. The basic Universal Credit rate rises by £10.07 a month and state pensions by £5.55 a week.
The rises are calculated based on inflation back in September 2021, which was 3.1%. Inflation has now hit more than 6% however, and is expected to peak at 8.7% due to other factors, such as the £693 rise in energy bills.
This will mean a huge cut in the value of benefit payments. According to the Office for Budget Responsibility, there will be a £12 billion fall in the real value of benefits in 2022-2023.
As Mirror Online reports, the way benefits are calculated suggests that’ll trigger a bumper rise in April 2023. The OBR has warned it will take benefits "up to 18 months to catch up fully with higher inflation".
Meanwhile the pensions triple lock - which would have raised the state pension by more than 8%, was suspended. When the new rates passed in Parliament only one Conservative MP, Peter Bottomley, voted against the below-inflation rise.
Rebecca, a working parent on a low income, told Save the Children: "My income from benefits will rise by around £24.80 a month.
"But my bus fares have gone up by £13 a month - just for me - and food in the supermarket has increased by around £20 a week, not to mention gas and electricity prices. It’s not going to make a difference to my situation."
Dan Paskins, Director of UK Impact at the charity, added: "A 3.1% rise to benefits when inflation will peak at 8% just doesn’t add up for struggling families.
"They now face having to make up shortfalls of hundreds of pounds this year as a result of this real terms cut. For many, energy price hikes alone will swallow up any extra income. In terms of meeting day to day costs, it won’t even touch the sides."
Here's everything you need to know about the new rates:
DWP benefit and pension payment rates from Monday April 11, 2022
Weekly rates are shown, unless otherwise stated.
Attendance Allowance
- Higher rate: £92.40 (from £89.60)
- Lower rate: £61.85 (from £60.00)
Carer’s Allowance
- April 2022 rate: £69.70 (from £67.60)
Disability Living Allowance
Care Component
- Highest: £92.40 (from £89.60)
- Middle: £61.85 (from £60.00
- Lowest: £24.45 (from £23.70)
Mobility component
- Higher: £64.50 (from £62.55)[;
- Lower: £24.45 (from £23.70)
Employment and Support Allowance (ESA)
- Under 25: £61.05 (from £59.20)
- 25 or over: £77.00 (from £74.70)
Housing Benefit
Your personal allowance is used to help calculate how much housing benefit you may be entitled to.
Single person (personal allowance)
- Under 25: £61.05 (from £59.20)
- Aged 25 and between State Pension age: £77.00 (from £74.70)
- Entitled to main phase ESA: £77.00 (from £74.70)
- Has reached State Pension age: £197.10 (from £191.15)
Lone parent (personal allowance)
- Under 25: £61.05 (from £59.20)
- Aged 25 and between State Pension age: £77.00 (from £74.70)
- Entitled to main phase ESA: £77.00 (from £74.70)
- Has reached State Pension age: £197.10 (from £191.15)
Couple (personal allowance)
- Both aged under 18: £92.20 (from £89.45)
- One or both aged between 18 and state pension credit age: £121.05 (from £117.40)
- Any age and on main phase ESA: £121.05 (from £117.40)
- One or both have reached pension age: £294.90 from £286.05)
Incapacity Benefit (long-term)
- April 2022 rate: £118.25 (from £114.70)
Income Support
- Under 25: £61.05 (from £59.20)
- 25 or over: £77.00 from (£74.70)
Jobseeker’s Allowance
Contributions based
- Under 25: £61.05 (from £59.20)
- 25 or over: £77.00 (from £74.70)
Income-based
- Under 25: £61.05 (from £59.20)
- 25 or over: £77.00 (from £74.70)
Maternity/Paternity/Shared Parental Allowance
- Standard rate: £156.66 (from £151.97)
Pension Credit
- Single: £182.60 (from £177.10)
- Couple: £278.70 (from £270.30)
Personal Independence Payment (PIP)
Daily Living Component
- Enhanced: £92.40 (from £89.60)
- Standard: £61.85 (from £60.00)
Mobility Component
- Enhanced: £64.50 (from £62.55)
- Standard: £24.45 (from £23.70)
State Pension
- Full New State Pension: £185.15 (from £179.60)
- Basic Old State Pension (Category A or B): £141.85 (from £137.60)
Widow’s Pension
- Standard rate: £126.35 (from £122.55)
Statutory Parental Bereavement Pay
- Standard rate: £156.66 (from £151.97)
Statutory Sick Pay
- Standard rate: £99.35 (from £96.35)
Universal Credit (monthly rates shown)
Standard allowance
Single
- Single under 25: £265.31 (from £257.33)
- Single 25 or over: £334.91 (from £324.84)
Couple
- Joint claimants both under 25: £416.45 (from £403.93)
- Joint claimants, one or both 25 or over: £525.72 (from £509.91)
Child Elements
- First child (born prior to 6 April 2017): £290.00 (from £282.60)
- First child (born on or after 6 April 2017) or second child and subsequent child (where an exception or transitional provision applies): £244.58 (from £237.08)
For the full list of DWP increases to benefits and the State Pension, visit the gov.uk website.
Click here to sign up to our Daily Newsletter for the latest news and top stories from Wales Online sent straight to your inbox.
