All the benefits set to go up in April including state pension and Universal Credit
MILLIONS of people receiving benefits are in line for a pay boost next month when welfare payments go up.
Benefits, including the state pension, will increase to offset the rising price of food and other goods, the The Department for Work and Pensions has confirmed.
Many benefits will increase by 1.7%, however some including the State Pension will increase by considerably more.
This increase will apply to a range of benefits, including Disability Living Allowance (DLA), Personal Independence Payment (PIP), and Universal Credit.
Of course, the exact increase in your payments will depend on your individual circumstances.
Here’s a full breakdown of all the benefits set to increase:
Attendance Allowance
Attendance Allowance helps with extra costs if you have a disability severe enough that you need someone to help look after you.
It’s paid at two different rates and how much you get depends on the level of care you need.
In April both rates will increase by 1.7%.
The higher rate will rise from £108.55 to £110.40, while the lower rate will go up from £72.65 to £73.90.
Carer’s Allowance
You can claim Carer’s Allowance if you provide at least 35 hours a week of care to someone in receipt of applying benefits listed below:
- Personal Independence Payment – daily living component
- Disability Living Allowance – the middle or highest care rate
- Scottish Adult Disability Living Allowance – the middle or highest care rate
- Attendance Allowance
- Pension Age Disability Payment
- Constant Attendance Allowance at or above the normal maximum rate with an Industrial Injuries Disablement Benefit
- Constant Attendance Allowance at the basic (full day) rate with a War Disablement Pension
- Armed Forces Independence Payment
- Child Disability Payment – the middle or highest care rate
- Adult Disability Payment – daily living component at the standard or enhanced rate
From April the amount claimants receive will increase from £81.90 to £83.30 a week, or 1.7%.
Child Benefit
Parents can claim Child Benefit if they’re responsible for a child under 16, or under 20 if in approved education or training.
Only one person in the household can get the benefit, but there is no limit to the number of children you can claim for.
There are two child benefit rates – one for the eldest child and another for each further child.
The eldest or only child rate will rise from £25.60 per week, to £26.05 in April, an increase of 1.7%.
The rate for additional children is £16.95, which will also rise by 1.7% to £17.25.
Disability Living Allowance (DLA)
DLA is a benefit that helps people with costs associated with a disability.
It is currently being phased out and replaced by Personal Independence Payment (PIP).
You can now only apply for DLA if you’re under 16, although it may have some legacy claimants, all of which will see rates go up by 1.7%.
DLA is paid at three levels.
- The highest amount will increase from £108.55 to £110.40
- The middle amount will increase from £72.65 to £73.90
- The lowest amount will increase from £28.70 to £29.20
And those who also receive the mobility component will also see their payments go up:
- The higher amount will increase from £75.75 to £77.05
- The lower amount will increase from £28.70 to £29.20
Employment Support Allowance (ESA)
Employment Support Allowance (ESA) tops up workers’ pay if they’re on a low income because a disability or health condition impacts how much they can work.
In April rates will increase by 1.7%.
Single people will see their payments increase by:
- Under 25-years-old, from £71.70 to £72.90
- Age 25 and older, from £90.50 to £92.05
- Lone parent under 18, from £71.70 to £72.90
- Lone parent 18 or over, from £90.50 to £92.05
Those in a couple will also see their rates rise:
- Both under 18-years-old, from £71.70 to £72.90
- Both under 18 years old with a child, from £108.30 to £110.15
- Both over 18, from £142.25 to £144.65
- Under 25, partner under 18, from £71.70 to £72.90
- Claimant 25 or over, partner under 18, from £90.50 to £92.05
The premium paid to those with an enhanced disability will rise from £20.85 to £21.20 for a single claimant and from £29.75 to £30.25 for a couple.
Those with a severe disability will see payments rise from £81.50 to £82.90 for a single claimant, from £81.50 to £82.90 for a couple on the lower rate and from £163 to £165.80 for a couple on the higher rate.
Carers of someone with a severe disability will see payments increase from £45.60 to £46.40.
Pensioners will also see a 1.7% increase, while the work-related activity component will go up from £35.95 to £36.55 and the support component from £47.70 to £48.50.
Housing Benefit
Housing Benefit helps claimants with the cost of renting if they’re unemployed, on a low income or claiming benefits.
The benefit is in the process of being phased out, with claimants being moved to Universal Credit.
Individuals can only now make a claim if they have reached state pension age or are in supported, sheltered or temporary accommodation.
The rates at which housing benefit is paid to existing claimants are set to increase by 1.7%.
Single people under 25 will see their personal allowances increase from £71.70 to £72.90, while those over 25 will see the rate increase from £90.50 to £92.05.
A couple under the age of 18 will see their personal allowance increase from £108.30 to £110.15, while for a couple over 18 it will increase from £142.25 to £144.65.
The rate for dependant children will increase from £83.24 to £84.66.
A single pensioner will see their personal allowance increase from £83.24 to £84.66 while a couple of pension age will see it increase from £352 to £366.
New-style Jobseeker’s Allowance (JSA)
JSA has replaced income-based Jobseeker’s allowance and supports those who are out of work while they look for employment.
Payments under the benefit are set to go up by 1.7%.
For under 25-year-olds JSA payments will go up from £71.70 a week to £72.90, while those over 25 will see them increase from £90.50 to £92.05.
Couples under the age of 18 will see payments increase from £71.70 to £72.90, while those over 18 will see a rise from £142.25 to £144.65.
A single pensioner will see payments increase from £127.65 to £135.05 while a couple of state pension age will receive £201.95, up from £190.70.
Rates for those with disabilities will also increase by 1.7%.
Maternity allowance
New mums who don’t qualify for standard maternity pay, including those who are self employed, can claim Maternity Allowance.
It will also rise from £184.03 a week to £187.18 from April.
Pension Credit
Pension Credit is paid to those who are of state pension age and on low income to help with living costs.
Some Pension Credit payments are set to increase by more than the 1.7% applied to most benefits.
Guaranteed Pension Credit payments will go up by 4.1% from £218.15 a week to £227.10 for single claimants and from £332.95 to £346.60 for couples.
A single, disabled Pension Credit claimant will see payments increase by 1.7% from £81.50 to £82.90, while a couple where both claimants qualify for disability payments will see the amount they receive go up from £163 to £165.80.
You may also get the “Savings Credit” part of Pension Credit if both of the following apply:
- You reached state pension age before April 6, 2016
- You saved some money for retirement, for example, a personal or workplace pension
This maximum payments made with this part of pension credit will rise from £17.01 a week to £17.30 for single people or from £19.04 to £19.36 for couples.
Personal Independence Payments (PIP)
PIP covers the extra cost of living for those suffering from illnesses or disabilities.
It is paid to those with long-term conditions or disabilities who have difficulties with everyday tasks.
Rates for PIP will rise by 1.7% in April.
Payments for the daily living component will go up from £108.55 to £110.40 for the enhanced rate and from £72.65 to £73.90 for standard.
The mobility component will also rise from £75.75 to £77.05 for enhanced and from £28.70 to £29.20 for standard.
State pension
The state pension will rise from £11,502.40 to £11,975 per year – a £473 or 4.1% boost.
That’s because of the triple lock system, which sees the state pension rise in line with whatever is highest out of: wage growth, 2.5% or September’s inflation figures.
This year the rate of wage growth applies, meaning a 4.1% boost.
The full rate of the new State Pension will go up from £221.20 a week to £230.25.
For the basic part of the old state pension, the rate will increase from £169.50 to £176.45.
Statutory parental pay
Statutory parental pay rates will all increase by 1.7%.
This includes maternity, paternity, shared parental, adoption and parental bereavement payments.
Rates will increase by £184.03 a week to £187.18.
Statutory sick pay
You might be able to get statutory sick pay (SSP) if you’re off work due to illness.
SSP is currently worth £116.75 per week and it is paid by your employer for up to 28 weeks.
It will increase in April to £118.75.
Universal Credit
Universal Credit is paid to those who are not currently in work or to top up the income of low earners.
It was designed to combine several of the old “legacy benefits” into a single monthly payment.
Universal Credit payments are set to go up by 1.7% in April.
Standard allowance (per month)
- For those single and aged under 25, the standard allowance will rise from £311.68 to £316.98
- For those single and aged 25 or over, the standard allowance will rise from £393.45 to £400.14
- For joint claimants both under 25, the standard allowance will rise from £489.23 to £497.55
- For joint claimants where one or both are 25 or over, the standard allowance will rise from £617.60 to £628.10
Extra amounts for children
- For those with a first child born before April 6, 2017, the extra amount will go up from £333.33 to £339
- For those with a child born on or after April 6, 2017 or second child and subsequent child, the extra amount will go up from £287.92 to £292.81
- For those with a disabled child, the lower rate addition payment will rise from £156.11 to £158.76 and the higher rate from £487.58 to £495.87.
Extra amounts for limited capability for work
- For those deemed to have limited capability for work, the extra amount will go up from £156.11 to £158.76
- For those deemed to have limited capability for work or work-related activity, the extra amount will go up from £416.19 to £423.27
Extra amounts for being a carer
Universal Credit claimants can get an additional amount if caring for a severely disabled person for at least 35 hours a week.
The amount you get a month will rise from £198.31 to £201.68
The work allowance rates will also rise in April.
Increased work allowance
- The higher work allowance (no housing amount) for someone claiming Universal Credit with one or more dependent children or limited capability for work will rise from £673 to £684
- The lower work allowance for someone claiming Universal Credit with one or more dependent children or limited capability for work will rise from £404 to £411
Widowed Parent’s Allowance
The Widowed Parent’s Allowance is paid to parents with a dependant child whose partner died before April 5 2017, where the parents had been married, in a civil partnership or living together as such.
The amount paid will increase from £148.40 to £150.90, a rise of 1.7%.
The benefits that won't rise
The benefit increase is not universal and three components will not rise.
These three components can affect the amount of Universal Credit you receive.
They are benefit caps, capital limits and local housing allowance (LHA).
First brought in by the government in 2013, the benefit cap sets a limit on the total amount of benefits households can get.
Universal Credit counts towards the cap, along with other benefits like Child Benefit, Housing Benefit and Jobseekers Allowance.
And if your combined income is above this limit, your housing benefit or Universal Credit might be reduced.
Capital limits restrict the amount of savings you can have before you stop getting certain benefits.
This includes things like Universal Credit and Housing Benefit.
The lower limit remains at £6,000, meaning that any savings you have below that will be disregarded for benefits calculations.
The upper limit is usually £16,000 and will not be changing, meaning that if you have any savings over that, you won’t receive any benefits at all.
Local housing allowance (LHA) rates set the maximum amount people renting from a private landlord can claim in housing benefit or Universal Credit.
They will remain at their current level from April 2025.
This decision will impact around 1.6million households, resulting in a shortfall of as much as £3,129 a year in areas with the highest rents..
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