Millions of people are set to see an increase in their benefits from next year as rates rise in line with soaring inflation. The UK government confirmed last month that it would uplift benefit rates for the 2023/24 year in line with September's consumer price index (CPI) of 10.1% as millions of low-income households grapple with rising costs across the board.
The cost of living crisis has led to increased financial support for many of those hardest hit including a £650 payment for means-tested benefits claimants, £150 for those with disabilities and a £400 discount off energy bills for all households spread over six months. There will also be a number of additional payments in December including a Christmas bonus and a £300 top-up to winter fuel payments. You can find out all the payments coming this month here.
But while the government's decision to uplift benefits in April after months of uncertainty will be a welcome relief for many, not all rates will change. Here is a rundown of all the benefits which will and won't rise in April when the changes come in. To get all the latest money-saving news straight to your inbox twice a week sign up here.
Read more: DWP Christmas bonus will arrive with millions of benefits claimants this week
Which benefits are going up by the rate of inflation in April?
Here are all the new benefit rates coming into effect from April 2023. Rates are weekly unless states otherwise.
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: £26.95 (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 parental 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)
What rates are not changing?
The following benefit rates and thresholds will not be going up in April:
- Childcare element of working tax credit - this is given to single people or couples who work at least 16 hours a week and offers up to 70% of what you pay in childcare as long as your childcare costs are not more than £175 per week for one child or £300 per week for two or more children. This rate will not be uprated in April as it has been frozen since 2005/2006.
- Child tax credit (family element) - this rate has been at its current annual rate of £545 since the current tax credit system came into effect in 2003 and will not be uplifted in April
- Withdrawal rate - the withdrawal rate is the estimated percentage of savings you're able to withdraw each year throughout retirement without running out of money, usually between 4% and %. This will not be uplifted in April
- Income rise and fall disregard - for tax credits, if your income falls during the year the first £2,500 difference between last year’s income and this year’s is ignored. If your income goes up the first £2,500 increase is ignored. These thresholds will not change in 2023/24
- Universal credit (childcare costs amount) - This is never uplifted and will not be so next year in alignment with the childcare element of working tax credits.
- Winter fuel payment - this will not be uplifted in April although eligible claimants will get an extra £300 on top of their usual payment this year. Details of any additions to next year's winter fuel payment have not been announced. You can find out more here.
- Local housing allowance - Local housing allowance is used to calculate the maximum amount people renting from a private landlord can claim in housing benefit or universal credit. This maximum rent is based on where you live, the number of bedrooms you need and the rent you pay. Work and pensions secretary Mel Stride said recently the next time he will look at the allowance would not be until “in about a year’s time" meaning it will not be uplifted in April. This is despite 59% of private renters on universal credit having rents above the maximum, according to shadow work and pensions minister Karen Buck.
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