DWP update: Exact amount benefits could rise by REVEALED – how much will Universal Credit & PIP be?
The Department for Work and Pensions (DWP) is set to increase benefits by 1.7 per cent from April 2024, following the confirmation of September’s inflation rate.
This rise will affect millions of people, but how will those on Universal Credit and Personal Independence Payment (PIP) be impacted?
Chancellor Rachel Reeves is expected to officially announce the increase in her Autumn Budget on 30 October.
The uplift comes after benefits rose by 6.7 per cent this April, following a 10.1 per cent increase the previous year.
While the 1.7 per cent increase is lower than in recent years, it still represents a boost for those relying on welfare payments.
The DWP is legally required to increase nine specific benefits in line with inflation each April.
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These include Personal Independence Payment (PIP), Disability Living Allowance, and Attendance Allowance. Other benefits, such as Universal Credit, are subject to Parliamentary approval.
Meanwhile, the state pension is set to rise by 4.1 per cent under the triple lock formula. This guarantees an increase based on the highest of inflation, wage growth, or 2.5 per cent.
The exact date of the increase may vary depending on the benefit claimed. It’s worth noting that the amount that can be deducted from benefit payments through sanctions could also increase.
Rachel Reeves previously stated her belief that benefits should continue to rise in line with the traditional September inflation rate.
Here’s how some common benefits are expected to increase:
- Universal Credit’s standard allowance for a single person over 25 will rise from £393.45 to £400.14 per month.
- Attendance Allowance will see the lower rate increase to £73.90 per week and the higher rate to £110.40 weekly.
- Carer’s Allowance is set to rise from £81.90 to £83.30 per week.
- Child Benefit for the first child will increase to £26.05 weekly, while additional children will receive £17.25 per week.
- Personal Independence Payment (PIP) rates will also rise, with the daily living component increasing to £73.90 (lower rate) and £110.40 (higher rate) per week.
- The full new state pension is expected to increase from £221.20 to £230.30 weekly.
Benefits such as Universal Credit usually increase as well, but these are subject to Parliamentary approval.
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The benefit increases are set to take effect from April 2024, providing a modest boost to claimants’ incomes.
However, it’s important to note that the exact implementation date may vary depending on the specific benefit claimed.
While the uplift aims to help recipients cope with rising living costs, some concerns remain. The DWP has released figures showing over one million households are not receiving a collective £3billion in “unfulfilled” benefits.
This could be due to changes in circumstances since initial claims were made, such as worsening health conditions or unreported rent increases for Universal Credit claimants.
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