Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Bristol Post
Bristol Post
National
Linda Howard & Kate Lally & Ellie Kendall

DWP: New payment rates for Universal Credit, Child Benefit, PIP and more from next month

The Department for Work and Pensions (DWP) has announced that millions of people receiving benefits from both the DWP and HMRC will see a rise in payment amounts starting from April. Payments are reported to be rising by some 10.1% from next month.

Despite this, however, most people won't see a difference until May, due to payments being made in arrears. Chancellor Jeremy Hunt confirmed in November last year that State Pension, disability and most working age benefits would be uplifted in line with the rate of inflation, the Liverpool Echo reports, at a cost of £11bn to the UK government.

This means that, on average, a family on Universal Credit will benefit by around £600 this year, the Daily Record reports. The benefit cap will also rise in line with inflation, meaning it will increase from £23,000 to £25,323 for families in Greater London and from £20,000 to £22,020 for families nationally.

Read more: DWP: Every government one-off payment people under 30 can claim this March

Meanwhile, lower caps for single households without children will rise from £15,410 to £16,967 in Greater London and from £13,400 to £14,753 nationally. Inflation-linked DWP benefits, Tax Credit elements and benefits administered by HMRC will also rise by 10.1%, as will the Basic and New State pensions.

Here is a summary of the new weekly payment rates, beginning in April:

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: £26.90 (from £24.45)

Mobility component

  • Higher: £71.00 (from £64.50)
  • Lower: £26.90 (from £24.45)

Employment and Support Allowance (ESA)

  • Under 25: £67.20 (from £61.05)
  • 25 or over: £84.80 (from £77.00)

Incapacity Benefit (long-term)

  • April 2023 rate: £130.20 (from £118.25)

Income Support

  • Under 25: £67.20 (from £61.05)
  • 25 or over: £84.80 from (£77.00)

Jobseeker’s Allowance (contributions based)

  • Under 25: £67.20 (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: £172.48 (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: £71.00 (from £64.50)
  • Standard: £26.90 (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: £139.10 (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)

Child Benefit payment rates for 2023/24

There are two Child Benefit rates in place.

Current rates per week

  • Eldest or only child - £21.80
  • Additional children - £14.45

New rates per week - from April 2023

  • Eldest or only child - £24.00
  • Additional children - £15.90

Guardian's Allowance rates from April 2023

The new weekly rate for Guardian's Allowance will be £20.40 - an increase of £1.85 on the current 2022/23 rate of £18.55.

Working Tax Credit rates for 2023/24 (yearly amount shown)

Working Tax Credit is paid to people who are in work and on a low income – it does not matter whether you are an employee or self-employed, and you do not need to have children to get the payment.

Child Tax Credit is paid to people who have children and is paid in addition to Child Benefit and the Scottish Child Payment - you do not have to be working to receive it.

Here are the details of the proposed new payment thresholds and rates for the 2023/24 financial year.

Working Tax Credit income threshold

  • 2023/24 rate: £7,455
  • 2022/23 rate: £6,770

Basic element

  • 2023/24 rate: £2,280
  • 2022/23rate: £2,070

Couples and lone parent element

  • 2023/24 rate: £2,340
  • 2022/23 rate: £2,125

30-hour element

  • 2023/24 rate: £950
  • 2022/23 rate: £860

Disabled worker element

  • 2023/24 rate: £3,685
  • 2022/23 rate: £3,345

Severe disability element

  • 2023/24 rate: £1,595
  • 2022/23 rate: £1,445

Child Tax Credit rates for 2023/24 (yearly amount shown)

Child Tax Credit income threshold

  • 2023/24 rate: £18,725
  • 2022/23 rate: £17,005

Family element

  • 2023/24 rate: £545 (no change)
  • 2022/23 rate: £545

Child and qualifying young person element

  • 2023/24 rate: £3,235
  • 2022/23 rate: £2,935

Child disability element

  • 2023/24 rate: £3,905
  • 2022/23 rate: £3,545

Severely disabled rate of the child disability element

  • 2023/24 rate: £1,575
  • 2022/23 rate: £1,430

You can read the full list of proposed payment rate and threshold changes from HMRC on the GOV.UK website here.

Read next:

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.