Millions of people across Scotland and the UK claiming benefits from the Department for Work and Pensions (DWP) are set to see their payments rise starting this week.
Most benefits administered by the UK Government department will go up by 3.1% starting April 6, meaning many households will receive more money.
As reported by Wales Online, the increase will affect benefits such as Personal Independence Payment.
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However, according to experts, the new payment rates will actually result in a net loss of income for claimants amid the worsening cost of living crisis — with a 54% rise in energy costs coming into effect last week.
Although National Insurance, council tax, fuel prices — and even everyday costs such as shopping — are continuing to rise, some benefit payments are not increasing.
Read below for a full rundown of the benefits which will be remaining the same when the new rates come into effect on April 6.
Benefit cap
The benefit cap refers to the maximum amount a household can receive in benefits
Level of benefit cap:
- Couples (with or without children) or single claimants with a child of qualifying age — £384.62 a week, £1,666.67 a month, £20,000 a year
- Single adult households without children — £257.69 a week, £1,116.67 a month, £13,400 a year
Bereavement support payment
For deaths occurring on or after April 6, 2017:
Standard rate (lump sum) - £2,500
Standard rate monthly payments - £100
Higher rate (lump sum) - £3,500
Standard rate monthly payments - £350
Child maintenance deduction
Standard deduction - £8.40 a week
Fine or compensation order deduction
Standard rate - £5 a week
Lower rate - £3.75 a week
Child dependency addition
Weekly rate - £11.35 (payable with State Pension, widowed mother's allowance or widowed parent's allowance, short-term incapacity benefit higher rate or over State Pension age, long-term incapacity benefit, carer's allowance, severe disablement, unemployability supplement)
Weekly rate where payable for the eldest child for whom child benefit is also paid - £8 (Reduced by the difference between the child benefit rates, less £3.65, for the eldest and subsequent children)
Universal credit
Childcare costs amount:
- Maximum for one child - £646.35 a month
- Maximum for two or more children - £1108.04 a month
Child maintenance deduction:
- Standard deduction - £36.40 a month
Capital limits:
- Upper limit - £16,000
- Amount disregarded - £6,000
- Assumed income from capital for every £250 or part thereof, between capital disregard and upper capital limit - £4.35
Any money or savings that you possess below £6,000 is not counted when determining how much Universal Credit you should receive.
Benefits experts at Turn2us stated that a value more than £6,000 but less than £16,000 is treated as if it gives you a monthly income of £4.35 for each £250, or part of £250, regardless of whether it does or not.
This means, if you possess £6,300 in savings, £6,000 of it will not be counted and the other £300 will be treated as giving you a monthly income of £8.70.
If you have capital or savings more than £16,000 as a single claimant or as a couple you will not be eligible to receive Universal Credit.
If you are a member of a couple but the other person is not claiming Universal Credit, their capital/savings will still be taken into account.
Capital limits for other benefits
These are the rules common to income support, income-based jobseeker’s allowance, income-related employment and support allowance (ESA) and housing benefit unless otherwise stated.
Upper limit - £16,000
Amount disregarded - £6,000
Child disregard (not ESA or housing benefit) - £3,000
Amount disregarded (living in residential care or a nursing home) - £10,000
Rules common to pension credit and housing benefit:
Upper limit for pension credit and those getting housing benefit and pension credit guarantee credit - No limit
Amount disregarded for pension credit and housing benefit for those above the qualifying age for pension credit - £10,000
Amount disregarded (living in residential care or a nursing home) - £10,000
Pension income threshold
Pension income threshold for incapacity benefit - £85
Pension income threshold for contribution-based ESA - £85
Campaign groups such as the Child Poverty Action Group (CPAG) have called for a larger increase in benefit payments this month, as well as the cancellation of the benefit cap.
Chief executive of Child Poverty Action Group Alison Garnham stated that the majority of people impacted by the benefit cap are families with children who tend to live in areas with high housing costs.
Additionally, 63% of these are single-parent households, over half of whom have at least one child aged under five.
It is particularly difficult for single parents with very young children to escape the cap by working (or working more), she said. The level of the benefit cap hasn’t been revised since 2016 so the shortfall in the social security support that capped families receive, compared to what they need, has grown accordingly, CPAG argued.
A DWP spokesperson said: "The increase in benefit rates adds to a substantial support package for those on the lowest incomes, which includes putting an average of £1,000 more per year into the pockets of working families via changes to universal credit and boosting the minimum wage by more than £1,000 a year for full-time workers.
"Meanwhile, the benefit cap, up to the equivalent salary of £24,000, ensures fairness for hard-working taxpaying households and a strong work incentive, while also providing a much-needed safety net of support."
Officials say there is a statutory duty to review the levels of the cap at least once in each parliament and that this will happen "at the appropriate time" but cautioned that the current, unusual economic period would need to be taken into account.
The proportion of households impacted by the benefit cap remains low in comparison to the overall number claiming universal credit, the government says.
