The UK government recently announced a big change in the benefits provided to people, starting in April 2024. The Department of Work and Pensions (DWP) will increase benefits by 6.7%, helping many families and individuals manage the rising cost of living.
This increase is based on the Consumer Price Index (CPI) from September 2024, which measures inflation or how much prices have gone up. Along with this, the basic and new state pensions will also see an 8.5% rise. This guide will help you understand what benefits will increase and how it might affect you.
DWP’s 6.7% Benefit Increase: What You Need to Know
Starting April 8, 2024, various state pensions and benefits will increase by 6.7%. This change is significant because it will affect many people across the UK. The benefits that are set to rise include Universal Credit, Attendance Allowance, Disability Living Allowance, Statutory Sick Pay, and more. These changes are meant to help people keep up with inflation, which has been calculated at 6.7% for September 2024.
The DWP adjusts benefits and pensions each year based on inflation. Since 2011, the inflation rate has been reviewed in September to decide on changes for the upcoming financial year. For 2024, the increase is influenced by the CPI of 6.7% and an 8.5% rise in average weekly earnings from May to July 2024.
Benefits Set to Increase in 2024
Universal Credit
Universal Credit, a benefit designed to support those with low incomes or out of work, will see an increase. For single individuals under 25, the monthly allowance will rise from £292.11 to £311.68. Couples where both are under 25 will see their allowance go from £458.51 to £489.23. Other parts of Universal Credit, like child amounts and carer allowances, will also increase.
New Rates:
- Single (Under 25): £292.11 → £311.68
- Single (25 or Older): £368.74 → £393.45
- Couples (Both Under 25): £458.51 → £489.23
- Couples (One or Both 25 or Older): £578.82 → £617.60
Attendance Allowance
Attendance Allowance, which helps people who need assistance with personal care due to disability, will also see a rise. The higher rate will go from £101.75 to £108.55, and the lower rate from £68.10 to £72.65.
New Rates:
- Higher Rate: £101.75 → £108.55
- Lower Rate: £68.10 → £72.65
Disability Living Allowance (DLA)
Disability Living Allowance, which helps cover extra costs for those with disabilities, will have increases in both the care and mobility components. The highest care component rate will rise from £101.75 to £108.55, while the highest mobility component rate will increase from £71 to £75.75.
Care Component:
- Lowest Rate: £26.90 → £28.70
- Middle Rate: £68.10 → £72.65
- Highest Rate: £101.75 → £108.55
Mobility Component:
- Higher Rate: £71 → £75.75
- Lower Rate: £26.90 → £28.70
Personal Independence Payment (PIP)
Personal Independence Payment, another benefit for those with disabilities, will see similar increases.
The daily living component’s enhanced part will rise from £101.75 to £108.55, while the mobility component’s enhanced part will increase from £71 to £75.75.
Daily Living Component:
- Enhanced Rate: £101.75 → £108.55
- Standard Rate: £68.10 → £72.65
Mobility Component:
- Enhanced Rate: £71 → £75.75
- Standard Rate: £26.90 → £28.70
Other Benefits Increasing in 2024
- Industrial Injuries Disablement Benefit: Maximum weekly amount for 100% disablement will increase from £207.60 to £221.50.
- Statutory Paternity Pay: Standard rate will go up from £172.48 to £184.03.
- Statutory Sick Pay: Will rise from £109.40 to £116.75.
- Additional State Pension: Maximum amount will increase from £204.68 to £218.39.
- Statutory Maternity Pay: Will increase from £172.48 to £184.03.
- Incapacity Benefit: Long-term rate will rise from £130.20 to £138.90.
- Severe Disablement Allowance: Basic rate will increase from £92.20 to £98.40.
- Statutory Adoption Pay: Will rise from £172.48 to £184.03.
The 6.7% increase in benefits by the DWP is a significant move to help people manage the rising costs of living in the UK. This change will affect a wide range of benefits, ensuring that people receive the support they need. For those who rely on these benefits, this increase can make a big difference in their daily lives. To find out more or see the full list of benefits that will increase, you can visit the UK Government’s official website.
When will the 6.7% benefit increase take effect?
The increase will start on April 8, 2024.
What benefits will see an increase?
Benefits like Universal Credit, Attendance Allowance, Disability Living Allowance, and more will increase.
Why is there a 6.7% increase?
The increase is based on the Consumer Price Index (CPI) from September 2024, reflecting inflation.
Will state pensions also increase?
Yes, state pensions will see an 8.5% increase alongside the 6.7% rise in other benefits.
Where can I find more information?
You can visit the UK Government’s official website for more details.
