Following Chancellor Jeremy Hunt's Autumn Statement on Thursday last week, benefit claimants and pensioners were greeted with some good news.
From April 2023, a whole list of Department for Work and Pensions (DWP) benefits will go up by 10.1 per cent in line with inflation rates. This commitment by the Government will cost them £11 billion, but it will give a much-needed boost to millions of UK households next year.
The Chancellor said: "On average, a family on universal credit will benefit next year by around £600. And to increase the number of households who can benefit from this decision, I will also exceptionally increase the benefit cap with inflation next year."
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So, how will this affect benefit claimants, pensioners, and other people who claim financial support from the UK Government? Read on below to find out more.
Benefit cap rise
The benefit cap will rise nationally from £20,000 to £22,020 for families, and from £13,44 to £14,753 nationally for single households without children.
The proposed new DWP payment rates from 2023 to 2024
The payment rate rise of DWP benefits will take place from April 2023, and rise by 10.1 per cent in line with inflation, subject to Parliamentary approval. There has been no official list of payment rates as of yet, but indicative figures have allowed for an estimate of these rates.
Weekly rates are shown unless otherwise stated. Figures 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 (up from £92.40)
- Middle: £68.10 (from £61.85)
- Lowest: £26.95 (from £24.45)
Mobility component
- Higher: £71.05 (from £64.50)
- Lower: £26.95 (from £24.45)
Employment and Support Allowance (ESA)
- Under 25: £67.25 (from £61.05)
- 25 or over: £84.80 (from £77.00)
Housing Benefit
- Under 25: £67.25 (from £61.05)
- 25 or over: £84.80 (from £77.00)
- Entitled to main phase ESA: £84.80 (from £77.00)
Incapacity Benefit (long-term)
- April 2023 rate: £130.20 (from £118.25)
Income Support
- Under 25: £67.25 (from £61.05)
- 25 or over: £84.80 from (£77.00)
Jobseeker's Allowance (contributions based)
- Under 25: £67.25 (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 Paternal Allowance
- Standard rate: £172.50 (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: £71.05 (from £64.50)
- Standard: £26.95 (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: £139.15 (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)
Many groups expressed relief that benefits will rise in line with inflation, but they warned many vulnerable people will still fall through the cracks.
Rebecca McDonald, chief economist at the Joseph Rowntree Foundation, said: "It will be a huge relief to families on benefits that they are not facing what would have amounted to a historic cut.
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