BENEFIT payments will rise next year according to government plans.
Claimants should expect benefits and Universal Credit to rise in line with September’s inflation rate of 10.1% next April – here’s how that will look.
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As part of his Autumn Statement, Jeremy Hunt previously explained what will happen with benefits next year.
Altogether, changes made will cost the government £11billion and will help 10million households.
It came after previous concerns that the government would raise benefits in line with wages instead, which would’ve left millions of people hundreds of pounds worse off.
Benefit payments usually rise each year in April, based on how much prices are rising in the previous September.
For instance, last April benefits rose by 3.1% in line with inflation from September 2021.
Inflation is higher than wage growth, which means if the government uses wages then payments will not rise by as much – and would be a cut in real terms.
A real-terms pay cut is when your pay rises below the level of inflation.
Benefit amounts vary depending on which type you’re on, including Universal Credit, so payments will be different for each person.
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Below we explain how much each benefit payment is rising by in April 2023, based on the 10.1% inflation rate.
It’s always worth checking that you’re getting all the benefits you’re entitled to by using a free benefits checker.
Universal Credit
Standard allowance (per month)
- For those single and aged under 25, the standard allowance will rise from £265.31 to £292.11
- For those single and aged 25 or over, the standard allowance will rise from £334.91 to £368.74
- For joint claimants both under 25, the standard allowance will rise from £416.45 to £458.51
- For joint claimants where one or both are 25 or over, the standard allowance will rise from £525.72 to £578.82
Extra amounts for children
- For those with a first child born before April 6, 2017, the extra amount is going up from £290 to £315
- For those with a child born on or after April 6, 2017 or second child and subsequent child, the extra amount is going up from £244.58 to £269.58
- For those with a disabled child, the lower rate addition payment is going up from £132.89 to £146.31 and the higher rate from £414.88 to £456.89
Extra amounts for limited capability for work
- For those deemed to have limited capability for work, the extra amount is going up from £132.89 to £146.31
- For those deemed to have limited capability for work or work-related activity, the extra amount is going up from £354.28 to £390.06
Extra amounts for being a carer
Universal Credit claimants can get an additional amount if they’re caring for a severely disabled person for at least 35 hours a week.
The amount you get a month will rise from £168.81 to £185.86.
Increased work allowance
- The higher work allowance (no housing amount) for someone claiming Universal Credit with one or more dependent children or limited capability for work is going up from £573 to £631
- The lower work allowance for someone claiming Universal Credit with one or more dependent children or limited capability for work is going up from £344 to £379
Housing Benefit
Housing Benefit is designed to help you pay your rent if you’re unemployed, on a low income or claiming benefits.
Keep in mind that what you get through Housing Benefit depends on your circumstances – including how much you pay in rent, where you live and your personal circumstances.
We list the circumstances below.
Single person
- Aged under 25: Increasing from £61.05 to £67.20
- Any age and on main phase ESA: Increasing from £77 to £84.80
- Aged between 25 and state pension credit age: Increasing from £77 to £84.80
- Has reached pension age: Increasing from £197.10 to £217
Lone parent
- Aged under 18: Increasing from £61.05 to £67.20
- Any age and on main phase ESA: Increasing from £77 to £84.80
- Aged between 18 and state pension credit age: Increasing from £77 to £84.80
- Has reached state pension age: Increasing from £197.10 to £217
Couple
- Both aged under 18: Increasing from £92.20 to £101.50
- One or both aged between 18 and state pension credit age: Increasing from £121.05 to £133.30
- Any age and on main phase ESA: Increasing from £121.05 to £133.30
- One or both have reached pension age: Increasing from £294.90 to £324.70
Other
- Dependent child/young person aged under 20: Increasing from £70.80 to £77.78
Income Support
Income support is extra money for people who don’t have enough to live on.
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 £61.05.
It will go up to £67.20 a week – a £6 a week pay rise, from April, 2023.
Pension Credit
Retirees on a low income can get it topped up via Pension credit.
Pension Credit will rise from £182.60 a week to £201.05 or for couples, from £278.70 to £306.85.
If your income is lower than this, you should be eligible for the benefit.
You could get the “Savings Credit” part of Pension Credit if both of the following apply:
- you reached state pension age before 6 April 2016
- you saved some money for retirement, for example, a personal or workplace pension
This part of Pension Credit will rise from £14.48 a week to £15.94 or for couples, from £16.20 to £17.84.
There are also top-up amounts, for instance, if you’re caring for someone else or are disabled.
You can find out more about Pension Credit including how to apply in our guide.
Attendance Allowance
Attendance Allowance helps with extra costs if you have a disability severe enough that you need someone to help look after you.
It’s paid at two different rates and how much you get depends on the level of care that you need because of your disability.
The higher rate will rise from £92.40 to £101.75, while the lower rate will also go up from £61.85 to £68.10.
Carer’s Allowance
You can claim Carer’s Allowance if you care for someone at least 35 hours a week and they get certain benefits.
The rate will increase from £69.70 to £76.75 a week.
Disability Living Allowance
The Disability Living Allowance is being replaced by Personal Independence Payment (PIP) for disabled people.
You can only apply for DLA if you’re under 16. Older people whose DLA claim hasn’t come to an end may see payments go up.
- Highest amount will rise from £92.40 to £101.75
- Middle amount from £61.85 to £68.10
- Lowest amount from £24.45 to £26.90
And for the mobility component:
- Higher amount from £64.50 to £71.00
- Lower amount from £24.45 to £26.90
Employment Support Allowance
Employment Support Allowance (ESA) tops up workers’ pay if they’re on a low income.
- Under 25 years old, from £61.05 to £67.20
- Age 25 and older, from £77 to £84.80
- Lone parent under 18, from £61.05 to £67.20
- Lone parent 18 or over, from £77 to £84.80
There are also further rates for couples, those with disabilities or caring responsibilities.
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 next year.
For under 25-year-olds, contribution-based and income-based payments will go up from £61.05 a week to £67.20, and from £77 to £84.80 a week for those who are older.
There are also further rates for couples, those with children, disabilities or caring responsibilities.
Maternity, paternity, adoption and shared parental pay
Pay for mums and dads taking time away for kids, including those adopting, will rise next year too.
The statutory rates will rise from £156.66 to £172.48, for maternity, adoption, paternity and shared parental pay.
Parental bereavement pay will also rise by the same amounts.
Maternity allowance
New mums who don’t qualify for standard maternity pay could still get a payment adding up to thousands of pounds from Maternity Allowance.
It will rise from £156.66 a week to £172.48 from April.
Personal Independence Payment
Rates for Personal Independence Payments (PIP) will rise from next April.
PIP helps with the extra cost of living for those with illnesses or disabilities.
Payments for the daily living component will rise from £92.40 to £101.75 for enhanced and from £61.85 to £68.10 for standard.
For the mobility component it will rise from £64.50 to £71.00 for enhanced, and £24.45 to £26.90 for standard.
State Pension
The full rate of the new State Pension will rise from £185.15 a week to £203.85.
For the basic part of the old state pension, the rate will rise from £141.85 to £156.20.
