People claiming Universal Credit, Personal Independence Payment (PIP) and other DWP benefits are set for a huge rise in their payments from April 2023.
It comes after the Government confirmed all benefits, including pensions, will rise 10.1% in line with inflation. Chancellor Jeremy Hunt made the announcement amid the Autumn Statement on Thursday (November 17).
Fears had been mounting that benefits like Universal Credit and state pensions could be slashed in real terms after Tory flip flops on Boris Johnson's vow to hike them in line with inflation in April 2023.
READ MORE: Millions to get more DWP Cost of Living payments and how much you'll get
It is understood the Treasury sent initial plans for major measures to the Office for Budget Responsibility last weekend, so the experts could start drawing up forecasts. Now it has been confirmed state pension and benefits will go up 10.1%.
For people on Universal Credit, this means estimated rises of £631 per year for joint claimants, where one or both are aged 25 or over, with the amount rising from £525.72 to around £578.29 a month. Joint claimants who are both under 25 could expect their payments to jump from £416.45 to £480.09 per month, while people on a standard allowance aged 25 or over can expect a rise from £334.91 to £368.40.
Those who are aged under 25 and on a standard allowance could see their payments jump from £265.31 to £291.84 - an increase of £318 a year.
People on PIP, who are in receipt of the enhanced rate for both daily living and mobility, will get an extra £824 a year. Here is a full breakdown of how much each PIP component will rise by:
- Daily living - standard rate: £68.09 (up from £61.85 now)
- Daily living - enhanced rate: £101.73 (up from £92.40 now)
- Mobility - standard rate: £26.92 (up from £24.45 now)
- Mobility - enhanced rate: £71.01 (up from £64.50 now)
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