MILLIONS on benefits including Universal Credit will get a bumper pay rise from April.
Chancellor Jeremy Hunt announced the hike during his Autumn Statement on November 22.
AlamyA number of benefits are rising from April[/caption]
Benefit payments will rise by 6.7% later this year, in line with the Consumer Price Index (CPI) level of inflation for September 2023.
However, the state pension will rise by 8.5% after the Government confirmed the triple lock, while Pension Credit will increase by the same amount.
Of course, the amount your benefits will rise by depends on which one you receive and your financial circumstances.
Although the new rates come in from April, you might have to wait a little longer to get the extra cash.
A spokesperson for the Department for Work and Pensions confirmed they will rise from the first Monday after the new tax year begins on April 6 – so that’s from April 8.
Remember, your benefit will rise on your usual payment date.
That means if you usually get paid on the 2nd of each month, you won’t actually see your benefit rate increase until May 2.
Which benefits are going up?
A number of benefits have to go up in line with inflation as it’s the law. These include:
Personal independence payment (PIP)
Disability living allowance
Incapacity benefit
Severe disablement allowance
Industrial injuries benefit
Additional state pension
Guardian’s allowance
A number of other benefits don’t have to rise in line with inflation, but the Government hikes them anyway so households don’t suffer a real-terms pay cut.
The list of benefits going up by 6.7% from April includes:
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
How much will my benefits go up?
How much your benefit goes up by will vary depending on which one you’re on as they pay out different amounts.
We’ve included a couple of examples below:
Universal Credit
Over six million people claim Universal Credit.
Under the system, you receive different amounts depending on your circumstances:
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 April, 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)
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 £67.20 a week.
This will go up to £71.70 a week from April.
You can see the full list of benefits and how much they will rise by in our full guide.
It’s also worth noting that millions of Brits are missing out on other benefits adding up to billions of pounds in total.
There are several benefit checker tools you can use to find out what you could be eligible for.
You can also join our new Sun Money Facebook group to share stories and tips and engage with the consumer team and other group members.