The Department for Work and Pensions has confirmed increases in payments for benefits and payments from next week. All benefits are set to rise from April 11 this year in line with the State Pension.
This is usually calculated by the triple lock which sees pensions increase by either inflation, the average wage, or 2.5%, whichever is highest. The government disregarded this system last year due to the wage jump at the end of furlough which saw wages grow by eight percent and decided to use the inflation figure of 3.1%.
Inflation has skyrocketed since then with the Bank of England predicting it could hit eight percent in the coming months. The government has now announced the triple lock is set to be reinstated for next year, YorkshireLive reports.
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This would see, at the current time, a massive increase in both the State Pension and benefits although it would only come into force from April 2023. In the meantime, the 3.1% rise in benefits is set to come into effect soon.
All benefits delivered by the Department for Work and Pensions are set to be effected which includes Universal Credit, the Personal Independence Payment and Jobseeker’s allowance. The State Pension will also increase by 3.1%
Universal Credit will therefore increase from £324.84 for a single person aged 25 or over to £334.91 a month. The amount of Universal Credit you receive from a child will also go up from £237.08 for a child born after April 6 2017 or second child to £244.58 a month.
Jobseeker’s Allowance for a contribution based allowance will increase from £59.20 for someone aged under 25 to £61.05 a week. If you are aged over 25 this will instead increase from £74.70 to £77 a week.
Personal allowances as part of the Employment and Support Allowance will increase for a single person aged under 25 from £59.20 a week to £61.05. For someone aged 25 or over this will be from £74.70 to £77 a week.
This all comes as the cost of living crisis sees prices rocketing up across the board. If you want to see how much all benefits will rise by this year, click here to go to the government's website.
