Universal Credit payments will increase from April next year, it has been confirmed by the Department for Work & Pensions. The increase is decided based on inflation and wage levels, as well as the cost of living crisis.
The boost comes amid findings from the University of Sussex Business School which claimed the introduction of Universal Credit “imposed large societal costs”. Each April, all payments get an increase - with a 3.1 per cent increase in place for this financial year (2022/2023). This figure was based on inflation in September 2021 but is well below the current CPI rate of 9.3 per cent.
It comes as more than eight million households have started to receive the first of two payments totalling £650 to ease cost-of-living pressures. Even with the cost of living payments, the rising cost of gas, petrol and goods on the supermarket shelf is already making life difficult for many, reports the Mirror.
However, a government minister stated the increase of Universal Credit payments will not be confirmed until November. Parliamentary under-secretary at the DWP David Rutley MP was responding to a written question asking the government to review benefit payments, with the energy price cap in mind.
Currently at an eye-watering maximum of £1,971 per year, the price cap could increase to £3,000 by October. Mr Rutley said the government is "required to undertake an annual statutory review of benefits and pensions" but there were no plans to bring the review forward.
The "review will commence in the autumn and decisions will be announced to Parliament in November in the normal way," he stated.
Current DWP payment rates for 2022-2023
Below are all the DWP payment rates for 2022-2023, with the previous amount for 2021-2022 in brackets to show how much they went up. A much larger rise is expected for 2023-2024.
Weekly rates are shown, unless otherwise stated.
Attendance Allowance
- Higher rate: £92.40 (from £89.60)
- Lower rate: £61.85 (from £60.00)
Bereavement Benefit
For deaths between April 9, 2001 and April 5, 2017
- Widowed Parent's Allowance: £126.35 (from £122.55)
Bereavement Support Payment
For deaths occurring on or after April 6, 2017
- Standard rate (lump sum) £2,500 (no change)
- Standard rate monthly payments £100 (no change)
- Higher rate lump sum stays at £3,500 (no change)
- Higher rate monthly payments £350 (no change)
Carer’s Allowance
- £69.70 (from £67.60)
Disability Living Allowance
Care Component
- Highest: £92.40 (from £89.60)
- Middle: £61.85 (from £60.00)
- Lowest: £24.45 (from £23.70)
Mobility component
- Higher: £64.50 (from £62.55)
- Lower: £24.45 (from £23.70)
Employment and Support Allowance (ESA)
- Under 25: £61.05 (from £59.20)
- 25 or over: £77 (from £74.70)
Housing Benefit
- Under 25: £61.05 (from £59.20)
- 25 or over: £77.00 (from £74.70)
- Entitled to main phase ESA: £77.00 (from £74.70)
Incapacity Benefit
- Long-term: £118.25 (from £114.70)
Income Support
- Under 25: £61.05 (from £59.20)
- 25 or over: £77.00 from (£74.70)
Industrial death benefit
- Widow's pension higher rate: £141.85 (from £137.60)
- Widow's pension lower rate: £42.56 (from £41.28)
- Widower's pension: £141.85 (from £137.60)
Jobseeker's Allowance
Contribution-based JSA
- Under 25: £61.05 (from £59.20)
- 25 or over: £77.00 (from £74.70)
Income-based JSA
- Under 25: £61.05 (from £59.20)
- 25 or over: £77.00 (from £74.70)
Maternity/Paternity/Shared Parental Allowance/Statutory Parental Bereavement Pay
- Standard rate: £156.66 (from £151.97)
Pension Credit
- Single: £182.60 (from £177.10)
- Couple: £278.70 (from £270.30)
Personal Independence Payment (PIP)
Daily Living Component
- Enhanced: £92.40 (from £89.60)
- Standard: £61.85 (from £60.00)
Mobility Component
- Enhanced: £64.50 (from £62.55)
- Standard: £24.45 (from £23.70)
State Pension
New State Pension
- £185.15 (from £179.60)
Old State Pension
- Category A or B Basic: £141.85 (from £137.60)
Category B (lower) basic pension - spouse or civil partner's insurance: £85 (from £82.45)
Category C or D - non-contributory: £85 (from £82.45)
Widow's Pension
- Standard rate: £126.35 (from £122.55)
Universal Credit (monthly rates shown)
Standard allowance
Single
- Single under 25: £265.31 (from £257.33)
- Single 25 or over: £334.91 (from £324.84)
Couple
- Joint claimants both under 25: £416.45 (from £403.93)
- Joint claimants, one or both 25 or over: £525.72 (from £509.91)
Child amounts
- First child (born prior to 6 April 2017): £290.00 (from £282.60)
- First child (born on or after 6 April 2017) or second child and subsequent child (where an exception or transitional provision applies): £244.58 (from £237.08)
Disabled child additions
- Lower rate: £132.89 (from £128.89)
- Higher rate: £414.88 (from 402.41)
