MILLIONS of households on benefits, including Universal Credit, are expected to get a payment boost worth £600 next year.
Jeremy Hunt is expected to confirm that benefit payments will increase in line with inflation in today’s Autumn Statement.
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The payment boost will come into effect in April 2024 and the average family on Universal Credit will be around £600 a year better off.
The Department for Work and Pensions (DWP) usually uses September’s inflation figures to make the decision on uprating benefit and pension payments from the following April.
However, there were concerns that the government was planning to use a lower inflationary figure to uprate welfare payments.
The yearly inflation rate for September came in at 6.7%, compared to 4.6% for October.
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But Jeremy Hunt is now expected to use September’s inflation figure as usual.
Pensioners are also set to get a bumper pay boost as The Chancellor is expected to confirm that the triple lock will remain unchanged.
While a boost to benefits will be welcomed by millions of households, claimants are set to face tougher work assessments.
It is part of a major back-to-work drive with a record high 2.6million people long-term sick.
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Sanctions will see the worst-offending claimants lose a chunk of their benefits.
How much could Universal Credit go up?
There are more than five million people claiming Universal Credit.
The current standard allowance for single UC claimants under the age of 25 is £292.11 a month.
This will increase by 6.7% to £311.68 – an increase of £19.57.
The standard allowance for single claimants over the age of 25 is £368.74 a month.
This means payments will increase by £24.71 a month to £393.45.
If you live with your partner and are both under 25, your monthly payment will increase from £458.51 to £489.23 – a rise of £30.72.
If you live with your partner and either of you are 25 or over, you could see a rise of £38.78 from £578.82 to £617.60 a month.
Of course, how much extra you’ll get a month depends on your current benefit level.
To calculate yours, simply multiply your monthly benefit amount by 1.067.
While the government is yet to confirm the full list of benefits to rise, the following are also legally required to have their payments rise with the previous September’s rate of inflation each April:
How to get help now
If you’re struggling with rising costs and bills now there is help available to you.
For example, you could be entitled to cost of living payments of up to £1,350.
This year and into 2024, the government is handing out cash to millions of people.
Individually, the payments are worth £900, £300 and £150.
Some people may be eligible for all three, meaning a total of £1,350.
The £900 Cost of Living payment has been split into three instalments worth £301, £300 and £299.
The second instalment of £300 has just been dished out, with the third to follow in Spring next year.
A separate £300 pensioner CoL payment will be dished out this winter.
Plus, the £150 Warm Home Discount is being applied from now until March 31 next year.
And you can also get help from your local council as part of the Household Support Fund.
For example, eligible households can get up to £350 free if they live in Tandridge, in east Surrey.
You can also join our new Sun Money Facebook group to share stories and tips and engage with the consumer team and other group members.
