THOSE eligible for Universal Credit will see their payments increase in 2023.
Payments usually increase in April each year to keep up with rising costs and inflation – it is known as an “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.
In November, inflation dropped to 10.7%, down from 11% in October.
Inflation usually dictate’s the uprating of benefits. – but there are some which don’t, including Universal Credit.
Universal Credit is one of several benefits which Chancellor Jeremy Hunt confirmed would increase in his Autumn Budget last month.
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Here, we explain if Universal Credit it set to increase next year, and by how much.
Will Universal Credit payments rise in 2023?
The Chancellor confirmed that the government will uprate benefits by inflation with an increase of 10.1%.
This will boost the payments for the average family on Universal Credit by £600 a year.
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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.
Universal Credit claimants asked to work with a coach
More than 600,000 people on Universal Credit will be asked to work with a work coach, it was announced yesterday during the Autumn Statement.
Hunt said he hopes the move will help promote financial independence.
Speaking in the Commons, he said: “We will ask over 600,000 more people on Universal Credit to meet with a work coach so that they can get the support they need to increase their hours or earnings.”
Claimants who work with a work coach enter into what’s called a claimant commitment.
A claimant commitment is an agreement between you and the government outlining what you will do to get Universal Credit payments.
You can find it by logging into your Universal Credit account online.
How much will I get?
Here’s how much more you will get next year every month in Universal Credit payments.
Universal Credit
Standard allowance (per month)
For those single and aged under 25, the standard allowance will rise from £265.31 to £292.11 For those single and aged 25 or over, the standard allowance will rise from £334.91 to £368.74For joint claimants both under 25, the standard allowance will rise from £416.45 to £458.51For joint claimants where one or both are 25 or over, the standard allowance will rise from £525.72 to £578.77
Extra amounts for children
For those with a first child born before April 6, 2017, the extra amount is going up from £290 to £319.29For those with a child born on or after April 6, 2017 or second child and subsequent child, the extra amount is going up from £244.58 to £269.28For those with a disabled child, the lower rate addition payment is going up from £132.89 to £146.31 and the higher rate from £414.88 to £456.78
Extra amounts for limited capability for work
For those deemed to have limited capability for work, the extra amount is going up from £132.89 to £146.31 For those deemed to have limited capability for work or work-related activity, the extra amount is going up from £354.28 to £390.06
Extra amounts for being a carer
Universal Credit claimants can get an additional amount if they’re caring for a severely disabled person for at least 35 hours a week.
The amount you get a month will rise from £168.81 to £185.86.
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 is going up from £573 to £631
The lower work allowance for someone claiming Universal Credit with one or more dependent children or limited capability for work is going up from £344 to £379
How do I claim Universal Credit?
If you’re not receiving Universal Credit and think you might be eligible, you should of course check if you qualify first.
You’ll have to be on a low income or need help with living costs. This doesn’t necessarily mean you have to be out of work though.
For example, you could be:
out of workworking (including self-employed or part-time)unable to work, for example if you have a health condition
You must also meet other criteria. You must:
live in the UKbe aged 18 or overbe under State Pension agehave £16,000 or less in money, savings and investments
You can also get Universal Credit if you’re 16 or 17 if you meet certain criteria, including having a health condition or disability, or if you’re responsible for a child.
The full list is included on the government’s website.
If you are eligible, you then have to make a claim – you can do this online or call the Universal Credit helpline if you don’t have access to the internet.
The number to call is 0800 328 5644.
You’ll need a number of documents to hand too – for the full list, you can read our explainer.
When will rates rise?
The rate rises will kick in from April 2023.
It’s not only Universal Credit claimants who will benefit from a boost to their payments.
Others claiming benefits such as state pension, carer’s allowance and housing benefit will get extra too.
Meanwhile, we reveal when millions on Universal Credit could get a Christmas bonus.
We have also put together a guide to all the direct payments that could be going into your account this month – including £300 for pensions and a £400 energy bill rebate.