Universal Credit and benefit payments set to rise in 2023 – how much more you could get explained

MILLIONS of people on benefit could get a pay rise next year as benefit rates are set to rise.

Payments usually increase annually in April to keep up with rising costs and inflation - it is known as an "uprating".

Universal Credit is one of several benefits which is set to increase.

Anyone getting child benefit, housing benefit and personal independence payment could also see higher payments.

It comes as inflation reached a 40-year high of 10.1% in the 12 months to July.

The inflation rate in September will dictate next year's uprating - so if it remains at 10.1%%, benefit payments could rise by that in April 2023.

For example, this year benefits were uprated by 3.1% based on inflation in September last year.

Benefits generally increase each year - this is known as the annual uprating.

This is so that payments can keep up with the cost of living like food, clothes and fuel, which rise over time - this is called inflation.

The Department for Work and Pensions usually confirms the amount that benefits will increase by in November each year.

But the inflation rate could still change between now and September, so the rise could still be more or less than this.

Inflation could rocket further to as much as 13.3% this year, the Bank of England has warned.

And some experts believe it could even hit 15%.

While a rise to benefit rates is good news, many could still be feeling worse off.

That's because inflation is high now and prices are rising squeezing many people's incomes - but the rise won't come in until next year.

Will Universal Credit and other benefits rise in 2023?

The current standard allowance for single claimants over the age of 25 is £334.91 a month.

If inflation was to remain at 10.1%, payments would increase by £33.82 a month to £368.73.

But if it rises to 11%, payments could reach £371.75 - an increase of £36.84.

But inflation could still come in at more or less than this in September, or the government could decide to increase benefit rates by a different amount.

The exact amount more you get will also depend on exactly how much your benefit payments are each month, as there are also extra amounts if you have children or caring responsibilities.

Charities have called for the government to increase benefit rates by more than the 3.1% handed out in April this year, as inflation has since shot up.

Instead the government has offered help through one-off cost of living payments worth up to £1,200 for the most hard up households on benefits.

The government has already confirmed that the triple lock which is used to calculate a rise in the State Pension will apply next year.

It means retirees getting the maximum state pension could get as much as extra £926 extra.

I'm struggling with my bills - what can I do?

There are a number of charities and organisations that may be able to help you piece your finances back together.

You can get in touch with these organisations as they may be able to help you get your finances back on track: