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Daily Record
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Linda Howard

New pay rates for State Pension, PIP, Universal Credit and other DWP benefits start this week - full list

Around 19.2 million families and 39.8 million individuals across Scotland, England and Wales currently in receipt of State Pension or benefits from the Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC) will see their payments go up by 10.1 per cent this week. However, due to payments made in arrears most people will not see a difference until May, or receive a mixed rate payment.

Chancellor Jeremy Hunt confirmed in the Spring Budget that State Pension, disability and most working age benefits will be uprated by 10.1 per cent from April 10, in line with the rate of inflation in September, at a cost of £11 billion to the UK Government.

The uprating means that on average, a family on Universal Credit will benefit by around £600 this year. The benefit cap will also rise in line with inflation, this will see it increase from £23,000 to £25,323 for families in Greater London and from £20,000 to £22,020 for families nationally - lower caps for single households without children will rise from £15,410 to £16,967 in Greater London and from £13,400 to £14,753 nationally.

New payment rates from April 10, 2023

Inflation-linked DWP benefits, Tax Credit elements and benefits administered by HMRC will rise by 10.1 per cent from April 10, 2023. The Basic and New State Pensions will also be uprated by 10.1 per cent, in line with the Triple Lock.

The DWP has published a full online guide to the increases for State Pensions, benefits and the increased benefit cap on the GOV.UK website here.

Below is a summary of the new weekly payment rates, weekly rates are shown, unless otherwise stated.

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 (from £92.40)
  • Middle: £68.10 (from £61.85)
  • Lowest: £26.90 (from £24.45)

Mobility component

  • Higher: £71.00 (from £64.50)
  • Lower: £26.90 (from £24.45)

Employment and Support Allowance (ESA)

  • Under 25: £67.20 (from £61.05)
  • 25 or over: £84.80 (from £77.00)

Incapacity Benefit (long-term)

  • April 2023 rate: £130.20 (from £118.25)

Income Support

  • Under 25: £67.20 (from £61.05)
  • 25 or over: £84.80 from (£77.00)

Jobseeker’s Allowance (contributions based)

  • Under 25: £67.20 (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 Parental Allowance

  • Standard rate: £172.48 (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: £71.00 (from £64.50)
  • Standard: £26.90 (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: £139.10 (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)

Child Benefit payment rates for 2023/24

There are two Child Benefit rates in place.

New rates per week - from April 2023

  • Eldest or only child - £24.00
  • Additional children - £15.90

Guardian's Allowance rates from April 2023

The new weekly rate for Guardian's Allowance will be £20.40 - an increase of £1.85 on the current 2022/23 rate of £18.55.

Working Tax Credit rates for 2023/24 (yearly amount shown)

Working Tax Credit is paid to people who are in work and on a low income – it does not matter whether you are an employee or self-employed, and you do not need to have children to get the payment.

Child Tax Credit is paid to people who have children and is paid in addition to Child Benefit and the Scottish Child Payment - you do not have to be working to receive it.

Here are the details of the proposed new payment thresholds and rates for the 2023/24 financial year.

Working Tax Credit income threshold

  • 2023/24 rate: £7,455
  • 2022/23 rate: £6,770

Basic element

  • 2023/24 rate: £2,280
  • 2022/23rate: £2,070

Couples and lone parent element

  • 2023/24 rate: £2,340
  • 2022/23 rate: £2,125

30-hour element

  • 2023/24 rate: £950
  • 2022/23 rate: £860

Disabled worker element

  • 2023/24 rate: £3,685
  • 2022/23 rate: £3,345

Severe disability element

  • 2023/24 rate: £1,595
  • 2022/23 rate: £1,445

Child Tax Credit rates for 2023/24 (yearly amount shown)

Child Tax Credit income threshold

  • 2023/24 rate: £18,725
  • 2022/23 rate: £17,005

Family element

  • 2023/24 rate: £545 (no change)
  • 2022/23 rate: £545

Child and qualifying young person element

  • 2023/24 rate: £3,235
  • 2022/23 rate: £2,935

Child disability element

  • 2023/24 rate: £3,905
  • 2022/23 rate: £3,545

Severely disabled rate of the child disability element

  • 2023/24 rate: £1,575
  • 2022/23 rate: £1,430

You can read the full list of proposed payment rate and threshold changes from HMRC on the GOV.UK website here.

To keep up to date with the latest benefits news, join our Money Saving Scotland Facebook page here, follow us on Twitter @Record_Money, or subscribe to our newsletter which goes out Monday to Friday - sign up here.

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