Chancellor Jeremy Hunt has confirmed many benefits will rise by 10.1% in April next year. Around 19.2m families and 39.8 million individuals qualify State Pension, Universal Credit and PIP among other payments from the Department for Work and Pensions and HM Revenue and Customs (HMRC).
The move was confirmed by Jeremy Hunt in the Autumn Statement on Thursday. He said the State Pension, disability and working age benefits would qualify for the uplift.
It will see families on Universal Credit getting an average of an extra £600 a year. He also increased the benefit cap from £23,000 to £25,323 for families in Greater London and £20,000 to £22,020 for those living elsewhere.
There was also a change announced for the lower caps for single households without children which will rise from £15,410 to £16,967 in Greater London. This will go from £13,400 to £14,753 nationally.
According to The Daily Record it will set the UK Government back £11 billion as it rises in line with inflation. Mr Hunt told parliament: "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.”
Proposed new DWP payment rates from 2023 to 2024
Subject to Parliamentary approval, inflation-linked DWP benefits, Tax Credit elements and benefits administered by HMRC will rise by 10.1% from April 2023. The Basic and New State Pensions will also be uprated by 10.%, in line with the Triple Lock.
While no official list of new payment rates has been released yet, below are examples of how the uprating will impact benefit amounts.
Weekly rates are shown, unless otherwise stated and 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 (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)
