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Edinburgh Live
Edinburgh Live
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Dan Bloom & Alexander Smail

DWP benefits and pension rise today but many will be worse off

Benefits and pensions increase by 3.1% today, meaning claimants will receive more money in their payments.

However, as reported by The Mirror, a surge in inflation will counteract the cash boost for many people across Scotland and the UK, leaving them worse off than before.

The Universal Credit basic rate, not including childcare and housing, will go up by £10.07 per month, whilst the State Pension will rise by £5.55 per week.

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Carer's Allowance, meanwhile, will increase by £2.10 per week, and Statutory Sick Pay will go up by £3 per week.

These rates were determined based on what inflation was last September — 3.1% — but this year it is already over 6%, and is predicted to peak at 8.7%.

As a result, there will be a £12 billion decrease in the real-time value of benefits in the 2022/23 financial year, according to the Office for Budget Responsibility (OBR).

Due to the way benefits are calculated, there will likely be a major rise in April 2023, but households across the country are already struggling to afford bills this year.

The OBR suggested it will take benefits "up to 18 months to catch up fully with higher inflation".

The earnings element of the 'triple lock' was suspended by the UK Government for 2022-23 following a higher rise in wage inflation due to the pandemic.

Had it not been suspended, the State Pension would have risen by over 8% — meaning it would have only just seen pensions keep track with inflation.

Speaking with Save the Children, one parent on a low income said: “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.”

Director of UK Impact at Save the Children Dan Paskins 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."

Read below for a full breakdown of the new UK rates.

New DWP payment rates from 11 April 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.

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