A series of payments and DWP benefits will be uprated tomorrow following the start of a new tax year.
The government previously confirmed that it will raise a series of payments and benefits in line with the recorded inflation rates for last September. This means many will see their payments go up by 10.1 per cent.
Chancellor Jeremy Hunt stated in his Autumn Budget that the increase will roughly cost the government £11 billion and will be a welcome relief for the many vulnerable households facing increased pressure from the cost of living crisis.
Read more: The confirmed dates for DWP and HMRC cost of living payments in April and May
Benefits will automatically increase from April 6 and will include those receiving Working Tax Credit and Child Tax Credit. This includes the following:
Working Tax Credit
- Basic element
- Couple and lone parent element
- 30-hour element
- Disabled worker element
- Severe disability element
Child Tax Credit
- Child element
- Disable child rate
- Severely disabled child rate
- Income threshold
- Threshold for those entitled to Child Tax Credit only
- Child benefit
- Guardian's Allowance
What will the new rates be for different Tax Credits?
For working Tax Credits, they will increase to the following payments per year:
- Basic element: from £2,070 to £2,280
- Couple and lone parent element: from £2,125 to £2,340
- 30 hour element: from £860 to £950
- Disabled worker element: from £3,345 to £3,685
- Severe disability element: from £1,445 to £1,595
For the childcare element of working Tax Credit, the following change will be implemented:
- Maximum eligible cost for 1 child: Will remain at £175
- Maximum eligible for 2 or more children: Will remain at £300
For Child Tax Credit rates:
- Child Tax Credit family element: Will remain at £545
- Child element: From £2,935 to £3,235
- Disability element: disabled child rate: from £3,545 to £3,905
- Disability element: severely disabled child rate: from £1,430 to £1,575
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