MILLIONS on benefits and the state pension are set for a bumper pay rise from today.
Both payments will be going up by 6.7% and 8.5% respectively, meaning an increase of as much as £901 for some.
Benefit allowances are going up in line with the inflation rate for last September.
While those on state pension will get the 8.5% rise due to the government's triple lock remaining in place.
The triple lock system sees the state pension rise in line with whatever is highest out of: wages for May to July, 2.5% or September's inflation figures.
Growth in employees' average total pay was 8.5% in the three months to July last year.
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Meanwhile, nearly 1.4million on Pension Credit will see their payments rise by 8.5% as well.
Bear in mind, that the dates you will see your benefit payments rise depend on when you normally get paid.
For example, if you usually get paid Universal Credit on the fourth day of the month, you won't get a pay boost until May 4.
State pension is usually paid every four weeks, so if you were expecting a payment between April 1 and 5, you might not actually see your pay rise until early May.
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It's important to take that into consideration if you're already budgeting for the higher amount.
Which benefits are going up?
Several benefits have to go up in line with inflation because it's the law, these are:
- 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
Some benefits don't have to rise in line with inflation, but the government hikes them to help households' earnings keep up with the cost of living.
The list of benefits going up by 6.7% from today is as follows:
- 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
How much will my benefits go up?
The amount your payments will go up depends on which benefit you receive and whether you receive more than one.
Below are a few examples of increases but you can find the full list of benefit rates for the 2024/25 tax year on the government's website.
Are you missing out on benefits?
YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to
Charity works out what you could get.
Entitledto's determines whether you qualify for various benefits, tax credit and Universal Credit.
MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto's data.
You can use to determine which benefits you could receive and how much cash you'll have left over each month after paying for housing costs.
Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.
Universal Credit
Over six million people claim Universal Credit.
You qualify for the benefit if you are 18 or over but under state pension age, and have less than £16,000 in money, savings and investments.
You don't have to be out of work to claim Universal Credit, although your allowance will fall as your earnings increase through what's known as the "taper rate".
You receive different amounts depending on your circumstances, for the last year these were:
- If you're single and under 25 - £292.10
- If you're single and 25 or over - £368.74
- If you live with your partner and you're both under 25 - £458.51 (for you both)
- If you live with your partner and either of you are 25 or over £578.81 (for you both)
But from today, this is how much you will receive:
- If you're single and under 25 - £311.68
- If you're single and 25 or over - £393.45
- If you live with your partner and you're both under 25 - £489.23 (for you both)
- If you live with your partner and either of you are 25 or over £617.60 (for you both)
State Pension
Pensioners on the new state pension will be looking at an increase of as much as £901 a year.
This is up from just over £10,600 to £11,501 a year.
And a weekly rise from £203.85 to £221.20 - a £17.35 increase.
It's important to note though that this is for those entitled to a "full" new state pension.
How much individuals get is based on the number of qualifying years of National Insurance contributions they've accrued.
Older pensioners who retired before April 2016 will get a weekly rise from £156.20 to £169.48, and an annual rise from £8,122.40 to £8,812.96.
Other elements of the old state pension system, mainly "additional" state pensions such as SERPS, will rise in line with the increase in CPI inflation for September which was 6.7%.
Housing benefit
Single person
- Aged under 25: Increases from £67.20 to £71.70
- Any age and on main phase ESA: Increases from £84.80 to £90.50
- Aged between 25 and state pension credit age: Increases from £84.80 to £90.50
- Has reached pension age: Increases from £217 to £235.20
Lone parent
- Aged under 18: Increases from £67.20 to £71.70
- Any age and on main phase ESA: Increases from £84.80 to £90.50
- Aged between 18 and state pension credit age: Increases from £84.80 to £90.50
- Has reached state pension age: Increases from £217 to £235.20
Couple
- Both aged under 18: Increases from £101.50 to £108.30
- One or both aged between 18 and state pension credit age: Increases from £133.30 to £142.25
- Any age and on main phase ESA: Increases from £133.30 to £142.25
- One or both have reached pension age: Increases from £324.70 to £352
Other
- Dependent child/young person aged under 20: Increased from £77.78 to £83.24
Personal Independence Payment
PIP helps with the extra cost of living for those with illnesses or disabilities.
Payments for the daily living component will go up from £101.75 to £108.55 for enhanced and from £68.10 to £72.65 for standard.
For the mobility component, it will rise from £71 to £75.75 for enhanced, and from £26.90 to £28.70 for standard.
Employment Support Allowance
Employment Support Allowance (ESA) tops up workers' pay if they're on a low income.
Rates will change in April 2024 for those who are single and:
- Under 25-years-old, from £67.20 to £71.70
- Age 25 and older, from £84.80 to £90.50
- Lone parent under 18, from £67.20 to £71.70
- Lone parent 18 or over, from £84.80 to £90.50
Those in a couple will also see their rates rise:
- Both under 18-years-old, from £67.20 to £71.70
- Both under 18 years old with a child, from £101.50 to £108.30
- Both over 18, from £133.30 to £142.25
- Under 25, partner under 18, from £67.20 to £71.70
- Claimant 25 or over, partner under 18, from £84.80 to £90.50
There are also further rates for those with disabilities or caring responsibilities.
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 and how much you get depends on the level of care that you need because of your disability.
The higher rate will rise from £101.75 to £108.55, while the lower rate will also go up from £68.10 to £72.65.
Pension Credit
Pension credit is worth around £3,900 a year on average and unlocks many other benefits, such as council tax reductions and help with energy costs.
The benefit will go up from £201.05 a week to £218.15, or for couples from £306.85 to £332.95.
If your income is lower than this, you should be eligible for the benefit.
You could 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 part of Pension Credit will increase from £15.94 a week to £17.01 or for couples, from £17.84 to £19.04.
You may also get additional pension credit if you are disabled, have caring responsibilities or have to pay certain housing costs such as mortgage interest payments.
You can find out more about Pension Credit including how to apply in our guide.
Disability Living Allowance
The Disability Living Allowance is being replaced by Personal Independence Payment (PIP) for disabled people.
You can only apply for DLA if you're under 16. Older people whose DLA claim hasn't come to an end may see payments go up.
- Highest amount will increase from £101.75 to £108.55
- Middle amount will increase from £68.10 to £72.65
- Lowest amount will increase from £26.90 to £28.70
And for the mobility component:
- Higher amount will increase from £71.00 to £75.75
- Lower amount will increase from £26.90 to £28.70
Jobseekers Allowance
Jobseekers Allowance (JSA) supports those who are out of work while they look for a job.
It is being replaced by Universal Credit but if you are still claiming it you'll see payments go up.
For under 25-year-olds, contribution-based and income-based payments will go up from £67.20 a week to £71.70, and from £84.80 to £77 a week for those who are older.
There are also further rates for couples, those with children, disabilities or caring responsibilities.
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 circumstances, however if you're single and aged between 16 and 24, your weekly payments start from £67.20.
It will go up to £71.70 a week - a £4 a week pay rise, from today.
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.
Carer's Allowance
You can claim Carer’s Allowance if you care for someone at least 35 hours a week and they get .
The rate will go up from £76.75 to £81.90 a week.
Maternity, paternity, adoption and shared parental pay
Pay for mums and dads taking time away for kids, including those adopting, has already gone up.
The statutory rates will increase from the start of April from £172.48 to £184.03, for maternity, adoption, paternity and shared parental pay.
Parental bereavement pay also increased by the same amounts.
Maternity allowance
New mums who don't qualify for standard maternity pay could still get a payment adding up to thousands of pounds from Maternity Allowance.
It will also rise from £172.48 a week to £184.03 from today.
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Meanwhile, millions of workers and self-employed Brits started to receive a £900 wage boost over the weekend.
Plus, a huge child benefit shake-up will save half a million parents £1,300 a year.
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