HOUSEHOLDS claiming Universal Credit could see their payments increase next year as benefit rates are set to rise.
Payments usually increase annually in April to keep up with rising costs and inflation – it is known as an “uprating”.
1
Universal Credit is one of several benefits which is set to increase.
Benefits generally increase each year – this is known as the annual 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.
The inflation rate in September, which is set to be announced next month, will dictate next year’s uprating.
For example, this year benefits were uprated by 3.1% based on inflation in September last year.
Here, we explain if Universal Credit it set to increase next year, and by how much.
Will Universal Credit payments rise in 2023?
The Department for Work and Pensions usually confirms the amount that benefits will increase by in November each year.
But the inflation rate could still change between now and September, so the rise could still be more or less than this.
Most read in Money
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.
How much will I get?
Here’s how much more you will get next year every month in your Universal Credit pay packet
Standard allowance (per month)
The current standard allowance for single claimants over the age of 25 is £334.91 a month.
If inflation was to remain at 10.1%, payments would increase by £33.82 a month to £368.73.
But if it rises to 11%, payments could reach £371.75 – an increase of £36.84.
But inflation could still come in at more or less than this in September, or the government could decide to increase benefit rates by a different amount.
The exact amount more you get will also depend on exactly how much your benefit payments are each month, as there are also extra amounts if you have children or caring responsibilities.
Extra amounts for children
Those with a first child born before April 6 2017 could see their money go from £290 to £319.29 – £29.29 more.
This is if inflation remains at 10.1%.
If inflation rises to 11%, payments could reach £321.90 – an increase of £31.90.
While those with a child born on or after April 6 2017 with a second or subsequent child could get £24.70 more with payments up from £244.58 to £269.28, based on inflation remaining at the same level.
But if it rises to 11%, payments could go up to by £26.90 to £271.48.
If you have a disabled child, lower rate addition payments could go up from £132.89 to either £146.31 or £147.50.
While higher rates may go up from £414.88 to £456.78 or £460.51.
Extra amounts for limited capability for work
If you have limited capability for work, payments could rise to between £390.06 to £393.25 from £354.28.
Extra amounts for being a carer
You’ll get extra money if you’re caring for a severely disabled person for at least 35 hours a week.
The extra amount you get a month is going up by between £17.04 and £18.56 from £168.81.
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.
