PAY BOOST
The 19 benefits that will rise next year – how much could your payments increase?
MILLIONS on benefits including Universal Credit will receive a pay boost from April 2023.
Benefits will rise in line with the consumer price index (CPI) level of inflation for September, which was 10.1%.
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Chancellor Jeremy Hunt announced the news in his Autumn Statement today.
He also announced:
- Up to £1,350 in cost of living payments
- Pension triple lock to stay in £870 boost for seniors
- Benefits including Universal Credit and pension credit to rise with inflation
- New work coach requirements for Universal Credit
- Social housing rents to rise 7%
- Freeze on income tax and National Insurance thresholds
- Stamp duty cut to end in 2025
- Typical energy bills to be capped at £3,000
- Minimum wage to rise to £10.42 an hour
The amount your benefits will rise depends on what you're receiving.
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There are nine benefits that have to rise in line with the consumer price index (CPI) rate of inflation because it's the law.
But millions on Universal Credit and other benefits were waiting to hear if their payments would go up in line with inflation because there's no legal obligation.
Benefits are already lagging a long way behind runaway living costs, leaving many pockets squeezed.
They were last increased in April 2022 by 3.1%, based on the previous September’s inflation figure.
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Which benefits must rise in line with inflation?
The following nine benefits are legally required to have their payments rise with the previous September's rate of inflation each April:
- Personal independence payment (PIP)
- Disability living allowance
- Attendance allowance
- Incapacity benefit
- Severe disablement allowance
- Industrial injuries benefit
- Carer's allowance
- Additional state pension
- Guardian's allowance
We've listed some examples below of how much you can expect your payments to go up by based on a 10.1% rise.
Personal independence payment (PIP)
People with long-term health conditions or disabilities can get extra help from a benefit known as personal independent payment (PIP).
PIP consists of two parts and whether you get one or both depends on how severely your condition affects you.
You may get the mobility part of PIP if you need help going out or moving around. The weekly rate for this is either £24.45 or £64.50.
While on the daily living part of PIP, the weekly rate is either £61.85 or £92.40 - and you could get both elements, so up to £156.90 in total.
If you get the maximum amount, you can expect your payments to rise from £156.90 a week to £172.75 a week from April 2023 - up by £15.85 a week.
Disability living allowance
Disability living allowance is made up of two parts, the "care component" and the "mobility component".
To get DLA you must be eligible for at least one of the components.
If you receive the highest care component, right now you'll get £92.40 a week.
If you receive the lowest amount, you'll get £24.45 a week.
From April 2023, your weekly payments will rise from £92.40 to £101.73 - up by £9.33 a week, if you're on the highest amount.
If you're on the lowest, your weekly payments will go from £24.45 to £26.90 - up £2.46 a week.
Attendance allowance
is paid to people who've reached state pension age and need help looking after themselves because of a physical or mental disability.
The lower rate is worth £61.85 a week.
From next April, payments will rise from £61.85 to £68.10 a week - a rise of £6.25.
The higher rate is worth £92.40 a week, which will rise to £101.73.
Which other benefits will rise?
The following 10 benefits don't have to rise in line with inflation, but after the Chancellor's announcement, will do.
- Universal Credit
- Child benefit
- Contributory employment and support allowance
- Contributory jobseeker's allowance
- Statutory maternity/paternity pay and maternity allowance
- Income-based jobseeker's allowance (JSA)
- Income-related employment and support allowance (ESA)
- Income support
- Working tax credit
- Child tax credit
We've listed some examples of how much Universal Credit, housing benefit and income support payments will rise by next year.
Universal Credit
Almost five million people claim Universal Credit, which was first introduced in 2013.
Under the system, you receive different amounts depending on your circumstances:
- If you're single and under 25 - £265.31
- If you're single and 25 or over - £334.91
- If you live with your partner and you're both under 25 - £416.45 (for you both)
- If you live with your partner and either of you are 25 or over £525.72 (for you both)
If you live with your partner and you're both under 25 you'll currently be getting £416.45 between you a month.
This will now go up by £41.64 to £458.51 from next April.
If you're single and under 25, you'll currently receive £265.31 - this will go up to £292.10 from April 2023.
Housing benefit
Housing benefit is designed to help you pay your rent if you're unemployed, on a low income or claiming benefits.
It is being replaced by Universal Credit through what's called "Managed Migration", however not everyone has been transferred across yet.
What you get through Housing Benefit depends on your circumstances - including how much you pay in rent, where you live and your personal circumstances.
But if you were theoretically receiving £100 every four weeks that will go up to £110.10 a month next year, just over a £10 pay rise.
Income support
Income support is extra money for people who don't have enough to live on.
It's a means-tested benefit which means your income, savings and any sources of cash are taken into consideration when deciding how much you'll receive.
How much you get depends on your personal circumstances, however if you're single and aged between 16 and 24, your weekly payments start from £61.05.
It will go up to £67.22 a week - a £6 a week pay rise, from April, 2023.
It's also worth noting that millions of Brits are missing out on other benefits they're entitled to adding up to billions of pounds in total.
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Benefit calculators can help you check what you could be entitled to.
There are several benefit checker tools you can use - here's our guide.
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