From this April, benefit payments including Universal Credit and PIP are set to increase by 1.7%. Most welfare payments are adjusted annually based on the inflation level from the previous September, which was confirmed at 1.7%.
Meanwhile, the state pension will see a 4.1% rise due to the triple lock promise. This ensures that each April, the state pension increases by the highest of three figures: the previous September’s inflation rate, wage growth (average between May and July), or 2.5%, reports the Mirror.
Here’s a breakdown of how some of the most common benefits will change this spring. It’s important to note that Universal Credit is replacing six older legacy benefits – including Working Tax Credit, Child Tax Credit, Income Support, Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance and Housing Benefit.
Universal Credit
Over six million people in the UK claim Universal Credit. Here’s an estimate of how much the Universal Credit standard allowance – the basic amount before any additional payments or deductions – is likely to increase.
- For single claimants under 25, it will go from £311.68 a month to £316.98 a month.
- For single claimants aged 25 or over, it will rise from £393.45 a month to £400.14 a month.
- For joint claimants both under 25, it will increase from £489.23 a month to £497.55 a month.
- For joint claimants, where one or both are 25 or over, it will go up from £617.60 a month to £628.10 a month.
Certain individuals may be eligible for additional payments on top of their standard allowance – for instance, you might receive extra funds if you have children or a long-term illness.
Child element
- First child born before April 6, 2017: £333.33 a month to £339 a month
- First child born on or after April 6, 2017, or second child and subsequent child: £287.92 a month to £292.81 a month
- Disabled child element lower rate: £156.11 a month to £158.76 a month
- Disabled child higher rate: £487.58 a month to £495.87 a month
Limited capability for work
- Limited capability for work: £156.11 a month to £158.76 a month
- Limited capability for work or work-related activity: £416.19 a month to £423.27 a month
Carer element
- £198.31 a month to £201.68 a month
Work allowance
- Higher work allowance (no housing amount): £ 673 a month to £684 a month
- Lower work allowance (with housing amount): £404 a month to £411 a month
Childcare costs element
- Maximum for one child: £1,014.63 a month to £1,031.88 a month
- Maximum for two or more children: £1,739.37 a month to £1,768.94 a month
Attendance Allowance
Attendance Allowance is issued to those over the state pension age who need extra support for day-to-day personal care as a result of living with an illness or disability.
Carer’s Allowance
Carer’s Allowance is granted to individuals who are caring for someone for at least 35 hours a week. You don’t need to be related to, or live with, the person you’re caring for to claim Carer’s Allowance.
- £81.90 a week to £83.30 a week
Child Benefit
Child Benefit is a monthly payment available to parents or anyone responsible for caring for a child.
- First or eldest child: £ 25.60 a week to £26.05 a week
- Any additional child: £ 16.95 a week to £17.25 a week
Disability Living Allowance
Disability Living Allowance (DLA) is being phased out and replaced by Personal Independence Payment (PIP) for disabled people. DLA applications are only open to those under 16 living in England or Wales.
DLA care component rates will increase as follows:
- The highest rate: £ 108.55 a week to £110.40 a week
- The middle rate from £ 72.65 a week to £73.90 a week
- The lowest rate from £ 28.70 a week to £29.20 a week
DLA mobility component rates will increase as follows:
- The higher rate: £75.75 a week to £77.05 a week
- The lower rate: £28.70 a week to £29.20 a week
Pension Credit
Pension Credit supplements your income if you’re above state pension age. It’s also known as a gateway benefit, as it opens up access to other benefits such as council tax discounts and free TV licences for over-75s.
Standard minimum guarantee
- Single: £218.15 a week to £227.10 a week
- Couple: £ 332.95 a week to £346.60 a week
Additional benefits are available if you’re a carer, disabled, looking after children, or if you have savings and reached state pension age before April 2016.
Personal Independence Payment (PIP)
The Personal Independence Payment, also known as PIP, is designed to assist working-age adults living with an illness, disability or mental health condition. PIP consists of two components – a daily living rate and a mobility rate – and you may be entitled to either or both of these.
Daily living
- Lower rate: Weekly payments range from £72.65 to £73.90.
- Higher rate: Weekly payments range from £108.55 to £110.40.
Mobility
- Lower rate: Weekly payments range from £28.70 to £29.20.
- Higher rate: Weekly payments range from £75.75 to £77.05.
State Pension
If you’re a man born on or after April 6, 1951, or a woman born on or after April 6, 1953, you can claim the new state pension. If you’re a man born before April 6, 1951, or a woman born before April 6, 1953, you can claim the basic state pension.
- Full new state pension: £221.20 a week to £230.25 a week
- Full old basic state pension: £169.50 a week to £176.45 a week
Please note that you may not receive the full amounts listed above as it all depends on your National Insurance record.