MILLIONS of people will get a pay rise as benefit rates are going up.
That includes so-called legacy benefits like tax credits and housing benefit, for those who have not yet moved over to Universal Credit.
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Eventually everyone will be moved over to Universal Credit, with the government setting a goal for that of the end of 2024.
Until then there are thousands who have not been moved over to the new system yet and are getting six benefits under the old system.
- Income-based Jobseekers Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income support
- Housing benefit
- Child tax credit
- Working tax credit
If you’re not already getting these and are making a new claim for benefits you won’t get any of these old ones.
Rates for these benefits are going up from Monday (April 11) by 3.1% along with others like Universal Credit and the State Pension.
Payments usually go up each year to keep up with rising costs, but inflation is now far higher than that and could even hit 8% this year.
So that means you could still be feeling the pinch because of rising bills and other essentials, despite the pay rise.
It’s always worth checking if you’re getting all the benefits you’re entitled to – if you’re missing out and start claiming it could boost your income.
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You can check by using an online benefits calculator, which are offered by charities such as Turn2Us and EntitledTo.
And if you’re struggling with bills there’s further help you can get – check it out here.
Here are the legacy benefit rates rising and how much more you’ll get for 2022-23.
The exact date you’ll see the rise depends on when you normally get the benefit payment.
How much you get will depend on your situation, including income and savings, if you’re eligible for other benefits and if you are subject to the benefit cap.
If you have a change of circumstances at the same time which affects your benefit entitlement then your payments could be different.
Jobseekers Allowance
Jobseekers Allowance (JSA) supports those who are out of work while they look for a job.
It is being replaced by Universal Credit but if you are still claiming it you’ll see payments go up.
For under 25-year-olds, contribution-based and income-based payments will go up from £59.20 a week to £61.05, and from £74.70 to £77.00 week for those who are older.
There are also further rates for couples, those with children, disabilities or caring responsibilities.
Employment Support Allowance
Employment Support Allowance (ESA) tops up pay from work if you have a disability or health condition.
- Under 25-year-old, from £59.20 to £61.05
- Age 25 and older, from £74.70 £77.00
- Lone parent under 18, from £59.20 to £61.05
- Lone parent 18 or over, from £74.70 £77.00
There are also further rates for couples, those with disabilities or caring responsibilities, and how much that is depends on your circumstances.
Income support
Income support can give you extra money if you’re on a low income.
You get a basic amount known as a personal allowance and may get extra payments on top (premiums).
Here’s how much more you’ll get on the basic amount:
- Aged under 25, from £59.20 to £61.05
- Aged 25 or over, from £74.70 to £77.00
- Lone parent aged under 18, from £59.20 to £61.05
- Lone parent age 18 or over, from £74.70 to £77.00
There are also further rates for couples, and premiums for those with disabilities or caring responsibilities.
Housing benefit
Personal allowances for housing benefit are increasing, but that doesn’t necessarily mean you will get more money.
For example, in some circumstances, including if you receive housing benefit alongside Universal Credit, the amount you get is calculated without regard to the personal allowance.
Housing benefit is usually worked out by adding together personal allowances and any additional “premiums” you could be entitled to, for instance if you have disabilities, or if you are caring for someone who is disabled.
- Aged under 25, from £59.20 to £61.05
- Any age and on main phase ESA, from £74.70 to £77.00
- Aged between 25 and state pension credit age, from £74.70 to £77.00
- Has reached pension age, from £191.15 to £197.10
- Lone parent aged under 18, from £59.20 to £61.05
- Any age and on main phase ESA, from £74.70 to £77.00
- Aged between 18 and state pension credit age, from £74.70 to £77.00
- Has reached state pension age, from £191.15 to £197.10
There are also further rates for couples, and premiums for those with disabilities or caring responsibilities.
How much you get will depend on your situation, including you renting situation and income.
Tax credits
There are two types of tax credits: working tax credits and child tax credits.
Working tax credit per year
- Basic element, from £2,005 to £2,070
- Couple and lone parent element, from £2,060 to £2,125
- 30 hour element, from £830 to £860
- Disabled worker element, from £3,240 to £3,345
- Severe disability element, from £1,400 to £1,445
The childcare element of working tax credits will remain the same at £175 and £300, depending on the number of children and costs covered will remain 70%.
Child tax credit per year
The family element of child tax credits will remain the same at £545.
- Child element, from £2,845 to £2,935
- Disability element: disabled child rate, from £3,435 to £3,545
- Disability element: severally disabled child rate, from £1,390 to £1,430
The income threshold for tax credits will rise from £6,565 to £6,770 and the withdrawal rate will remain 41%.
The threshold for those entitled to child tax credit only will rise from £16,480 to £17,005.
The income disregard will remain £2,500.
Capital limits which apply to all these benefits are not rising, so the first £6,000 of savings is ignored when claiming, and you won’t get any means-tested benefits if you have over £16,000 in the bank.
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