Millions of benefits claimants are set to see their payments go up from this week. The 3.1% rise in benefit rates, announced by the UK government last year, comes into effect on April 6.
The new higher rates will apply to most benefits including those on universal credit, PIP and other disability benefits. You can read the full list of new rates here.
However, experts have warned the new rates present a real-terms loss in income for claimants, with inflation already 4.8% for the 12 months up to December 2021 - and getting higher - and a 54% rise in energy costs coming into effect last week.
Read more: 'I can't afford to eat sometimes' The people on the front line of the crippling cost-of-living crisis
And despite the soaring cost of living which has also seen increases in council tax, National Insurance, fuel prices and shopping, there are some benefits that are not rising at all, Birmingham Live reports. Here is the list of benefits which will be remaining the same in 2022/2023 when the new rates come in on Wednesday.
Benefit cap
This is the maximum amount of benefits that can be awarded per household.
Level of benefit cap (Greater London):
- Couples (with or without children) or single claimants with a child of qualifying age - £442.31 a week, £1,916.67 a month, £23,000 a year
- Single adult households without children - £296.35 a week, £1,284.17 a month, £15,410 a year
Level of benefit cap (rest of Great Britain):
- 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
These amounts indicate that any capital or savings you have under £6,000 is ignored when calculating how much universal credit you receive. Benefits advisors at Turn2us explained that an amount over £6,000 but under £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. So if you have £6,300 in a savings account, £6,000 of it will be ignored and the other £300 will be treated as giving you a monthly income of £8.70.
If you have capital/savings over £16,000 as a single claimant or as a couple you will not be entitled to any universal credit. Some capital can be ignored when working out if you qualify for cash.
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
Campaigners including the Child Poverty Action Group (CPAG) have been calling for a bigger rise in benefit increases this April, as well as the removal of the benefit cap. Alison Garnham, chief executive of Child Poverty Action Group, said most people affected by the benefit cap are families with children (83 per cent) – often in areas of high housing costs - and of these, most (63 per cent) are headed by a single parent, more than 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.
