A wide series of DWP benefit payments will see a generous increase after this Easter weekend.
Every year, benefits are subjected to an increase that is in line with the recorded inflation for the previous September. In September 2022, the Consumer Price Index (CPI) was recorded at 10.1 per cent.
This means many benefits such as Universal Credit, personal independence payment (PIP), and Tax Credits will receive a 10.1 per cent increase, with some payments seeing an increase of more than £200. The rise is in effect from Monday, April 10.
Read more: Millions of households to see series of benefit payments rise from tomorrow
Chancellor Jeremy Hunt previously said in regard to the benefit rise: "There have also been some representations to keep the uplift to working age and disability benefits below the level of inflation given the financial constraints we face. But that would not be consistent with our commitment to protect the most vulnerable so today I also commit to uprate such benefits by inflation with an increase of 10.1 per cent. That is an expensive commitment costing £11billion.”
Here's everything you need to know about the benefit payments being increased after the Easter weekend.
When will benefits and pensions receive an increase?
Most of the new benefit rates will come into effect from April 10. That means any benefit or state pension payments after this date will be given the new rate. Benefits increased from April 6 for those receiving Working Tax Credit and Child Tax Credit.
Which benefits and pensions will be increased?
Here's a breakdown of all the benefits receiving a 10.1 per cent uprate in April.
Working Tax Credit
- Basic element
- Couple and lone parent element
- 30-hour element
- Disabled worker element
- Severe disability element
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
Child Tax Credit
- Child element
- Disable child rate
- Severely disabled child rate
- Income threshold
- The threshold for those entitled to Child Tax Credit only
- Child benefit
- Guardian's Allowance
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 £1,57
Universal Credit
- Standard allowance
- Limited capability for work amount
- Limited capability for work and work-related activity
- child amount
- Disabled child addition
- Carer amount
- Work allowance
The minimum amount for a person who is single and under 25 will rise from £265.31 to £292.11 while for over 25s it will rise from £334.91 to £368.74. For couple claimants under 25, it will rise from £416.45 to £458.51 while for over 25s it will rise from £535.72 to £578.82.
Other benefits
- Work allowance
- Attendance allowance
- Personal Independence Payment and Disability Living Allowance
- Carer's Allowance
- Carer Premium (in means-tested legacy benefits)
- Severe Disablement Allowance
- Industrial Injuries Disablement Benefit
- ESA, Income Support, JSA
Full details of the different rates can be found on GOV.UK.
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