Millions of individuals receiving Universal Credit and other benefits in the United Kingdom are poised to receive a payment increase starting in April 2024. This annual uprating, announced by Chancellor Rachel Reeves in the Autumn Budget, aligns benefit payments with the Consumer Price Index (CPI) inflation rate from the preceding September, which stood at 1.7% according to the Office for National Statistics (ONS). While the new rates officially take effect from April 7th, the first Monday after the new tax year, recipients might experience a slight delay before seeing the additional funds reflected in their payments.
The impact of this 1.7% increase translates to varying amounts depending on the specific benefit received and individual circumstances. Analysis by the Joseph Rowntree Foundation, an organization focused on poverty reduction, estimates that the standard allowance basic rate for Universal Credit will rise by approximately £1.50 per week, from the current £90.55. Couples receiving Universal Credit can expect an increase of around £2.50 per week, up from £145.13. For a typical low-income family with two children, the annual Universal Credit award is projected to rise by £253.
Beyond Universal Credit, several other benefits are also legally mandated to increase in April, mirroring the September inflation rate. These include Personal Independence Payment (PIP), Disability Living Allowance, Attendance Allowance, Incapacity Benefit, Severe Disablement Allowance, Industrial Injuries Benefit, Carer’s Allowance, Additional State Pension, and Guardian’s Allowance. For example, recipients of the lower rate of Attendance Allowance will see their weekly payment increase by £1.23 to £73.85, while those on the higher rate will receive an additional £1.85, bringing their total to £108.55. Carer’s Allowance will increase by £1.39 per week, reaching £83.29.
Breaking down the increases further, Personal Independence Payment (PIP) rates are set to rise by 1.7% across the board. The enhanced rate for the daily living component will increase from £108.55 to £110.40, while the standard rate will rise from £72.65 to £73.89. For the mobility component, the enhanced rate will increase from £75.75 to £77.04, and the standard rate from £28.70 to £29.19. These increases aim to address the additional living costs faced by individuals with illnesses or disabilities.
Employment Support Allowance (ESA), which supplements the income of low-earning workers, will also see adjustments in April. Rates will vary based on age, relationship status, and the presence of children. For instance, single individuals under 25 will see their ESA rise from £71.70 to £72.92, while those aged 25 and older will receive an increase from £90.50 to £92.04. Similar increases apply to lone parents. Couples receiving ESA will also experience rate adjustments based on their age and whether they have children. Further variations exist for individuals with disabilities or caring responsibilities, details of which can be found on the government’s website.
Finally, Attendance Allowance, designed to offset the costs associated with severe disabilities requiring care, will see increases in both its higher and lower rates. The higher rate will rise from £108.55 to £110.40, while the lower rate will increase from £72.65 to £73.89. Additionally, Guaranteed Pension Credit payments are projected to rise from £218.15 to £221.86 per week for individuals and from £332.95 to £338.61 for couples. Those eligible for Savings Credit, a component of Pension Credit for individuals who reached state pension age before April 6, 2016, and have saved for retirement, will see their weekly payments increase as well. For individuals, the increase is from £17.01 to £17.30, and for couples, from £19.04 to £19.36.
It is important for individuals to ensure they are receiving all the benefits they are entitled to. Several online resources, including benefits calculators offered by organizations like Turn2Us, Entitledto, MoneySavingExpert.com, StepChange, and Policy in Practice, can help individuals determine their eligibility and potential benefit amounts. While these calculators provide estimates, the exact entitlement will only be confirmed upon making a formal claim. These tools empower individuals to navigate the benefits system effectively and access the financial support they need.
