The Department of Work and Pensions (DWP) has recently announced a significant increase in benefits for the upcoming year. Starting in April 2024, many benefits and pensions in the UK will rise by 6.7%. This change, based on the consumer price index (CPI) of September 2024, aims to help people cope with rising living costs. In this article, we’ll break down what this means for you and list the benefits that will see an increase.
What Does a 6.7% Increase Mean?
The 6.7% increase announced by the DWP will affect various state benefits and pensions. These changes will start on April 8, 2024. Along with this rise, the basic and new state pensions will see an 8.5% increase. This is great news for many people in the UK, as it will provide extra financial support during tough times.
List of Benefits That Will Rise by 6.7% in 2024
Let’s look at the benefits that will go up next year. These include:
Universal Credit
Universal Credit is one of the main benefits that will see a rise. The standard allowance for single people under 25 will increase from £292.11 to £311.68. For couples, the allowance will increase from £458.51 to £489.23. Other parts of Universal Credit, like Child amounts, Carers amounts, and Work allowances, will also increase.
- Single (under 25): £292.11 → £311.68
- Single (25 or more): £368.74 → £393.45
- Couples (both under 25): £458.51 → £489.23
- Couples (one or both 25 or more): £578.82 → £617.60
Attendance Allowance
Attendance Allowance helps people who need extra help to stay independent. The higher rate will go up from £101.75 to £108.55, and the lower rate will rise from £68.10 to £72.65.
- Higher rate: £101.75 → £108.55
- Lower rate: £68.10 → £72.65
Disability Living Allowance
Disability Living Allowance (DLA) is for people with disabilities who need help with mobility or care. The Care Component’s rates will increase as follows:
- Lowest: £26.90 → £28.70
- Middle: £68.10 → £72.65
- Highest: £101.75 → £108.55
For the Mobility Component:
- Higher rate: £71.00 → £75.75
- Lower rate: £26.90 → £28.70
Personal Independence Payment
Personal Independence Payment (PIP) is for people who need help with daily living or getting around. The daily living component will see these increases:
- Enhanced: £101.75 → £108.55
- Standard: £68.10 → £72.65
For the mobility component:
- Enhanced: £71.00 → £75.75
- Standard: £26.90 → £28.70
Industrial Injuries Disablement Benefit
This benefit helps people who are injured or disabled because of their job. The maximum weekly amount for a 100% disablement will increase from £207.60 to £221.50. The amount decreases with the level of disablement, down to £44.30 for a 20% disablement level.
Statutory Paternity and Maternity Pay
Both Statutory Paternity and Maternity Pay will increase from £172.48 to £184.03.
- Standard rate: £172.48 → £184.03
Additional State Pension
The maximum additional state pension will rise from £204.68 to £218.39.
- Maximum: £204.68 → £218.39
Other Benefits
Other benefits, like Statutory Sick Pay, Incapacity Benefit, Severe Disablement Allowance, and Statutory Adoption Pay, will also see a 6.7% increase starting April 8, 2024.
Why Is This Increase Happening?
This increase is tied to the consumer price index (CPI) from September 2024, which showed a 6.7% inflation rate. The UK government uses this index to adjust benefits and pensions to ensure that they keep pace with the cost of living. Since 2011, the government has used the CPI in September each year to set the rates for the following financial year.
The 6.7% rise in benefits and pensions announced by the DWP is a welcome change for many in the UK. With the rising cost of living, this increase will provide much-needed support to those who rely on these benefits. Whether it’s Universal Credit, Disability Living Allowance, or Statutory Pay, the extra money will make a difference in people’s lives.
If you want to know more about these changes, you can visit the UK Government’s website for detailed information.
When will the 6.7% increase in benefits start?
The increase will start on April 8, 2024.
Which benefits will be affected by the 6.7% rise?
Benefits like Universal Credit, Attendance Allowance, Disability Living Allowance, and others will see an increase.
How is the increase in benefits calculated?
The increase is based on the consumer price index (CPI) from September 2024.
Where can I find more information about the benefit increase?
You can find more details on the UK Government’s official website.
Will my state pension also increase by 6.7%?
The basic and new state pensions will see an even higher increase of 8.5%.
