Millions of households across the UK are set to receive a major financial boost from April 2024, as the Department for Work and Pensions (DWP) confirms a significant 6.7% increase in benefit payments. This uprating is designed to help struggling families keep pace with the rising cost of living.
What Does the Increase Mean for Your Wallet?
The hike means some individuals and families could see their monthly payments rise by as much as £440. This vital increase applies to a wide range of support, including Universal Credit, Personal Independence Payment (PIP), and disability benefits.
Full Breakdown of New Benefit Rates
Here’s a detailed look at how the new rates will affect key benefits from April 2024:
Universal Credit (Monthly Standard Allowance)
- Single under 25: Rising from £292.11 to £311.68
- Single 25 or over: Increasing from £368.74 to £393.45
- Joint claimants both under 25: Up from £458.51 to £489.23
- Joint claimants, one or both 25 or over: Jumping from £578.82 to £617.60
Additional Support Elements
The increases also apply to crucial extra elements within Universal Credit, such as those for children, childcare, and limited capability for work.
State Pension Update
In a separate but simultaneous move, the State Pension will also see a substantial increase. The full new State Pension will rise by 8.5%, taking it from £203.85 per week to £221.20. This represents a yearly increase of over £900 for pensioners.
Why Are Payments Increasing?
The government uprates benefits each year to prevent their real-term value from being eroded by inflation. This year’s 6.7% increase is based on the Consumer Prices Index (CPI) from September 2023, ensuring support is aligned with the cost of living.
This financial uplift will be a welcome relief for millions, providing crucial support for essential expenses like food, energy, and rent during ongoing economic pressures.
