MILLIONS of people will have more money in their pockets next year as benefit rates are set to rise.
Benefit rates increase annually to keep up with rising costs and inflation.
1
Universal Credit is one of several benefits which is set to increase.
Anyone getting child benefit, housing benefit and personal independence payment could also see higher payments.
It comes as inflation reached a 40-year high of 10.1% in the 12 months to July.
If inflations runs this high in September, it could see benefit payments rise by that amount the following April.
For example in this year benefits were uprated by 3.1% based on inflation in September last year.
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 Department for Work and Pensions usually confirm the amount it will rise in November.
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%.
If inflation remains this high into September it means that Universal Credit and other benefits could increase by that amount in April 2023.
Will Universal Credit and other benefits rise in 2023?
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.
Charities have called for the government to increase benefit rates by more than the 3.1% handed out in April this year, as inflation has since shot up.
Instead the government has offered help through one-off cost of living payments worth up to £1,200 for the most hard up households on benefits.
The government has already confirmed that the triple lock which is used to calculate a rise in the State Pension will apply next year.
It means retirees getting the maximum state pension could get as much as extra £1,059 a year if inflation stays at 11%.
I’m struggling with my bills – what can I do?
There are a number of charities and organisations that may be able to help you piece your finances back together.
You can get in touch with these organisations as they may be able to help you get your finances back on track:
Don’t forget to check that you’re getting all the benefits you’re entitled to by using a free benefits checker, as this could boost your budget more.
Energy suppliers also have schemes in place where you can apply for free grants to put towards your energy bills.
You can also apply to wipe your energy debt clear, or get money for energy efficient appliances.
Here’s the full list of energy suppliers handing out help and information on how to apply.
Councils also have schemes you can apply to – such as the Household Support Fund and welfare assistance programmes.
You can also get up to £1,000 in cash if you apply to your local council’s welfare assistance scheme.
