The Department for Work and Pensions (DWP) in the UK has announced a notable increase of 6.7% in various benefits for the upcoming year, taking effect from April 8, 2024. This adjustment is based on the Consumer Price Index (CPI) from September 2024, reflecting inflation rates. Additionally, the basic and new state pensions will rise by 8.5%, providing further financial support to pensioners.
List of Benefits Increasing by 6.7%
Several key benefits will see an increase, including:
Universal Credit
- Single (under 25 years): From £292.11 to £311.68
- Single (25 or over): From £368.74 to £393.45
- Couples (both under 25): From £458.51 to £489.23
- Couples (one or both 25 or over): From £578.82 to £617.60
Attendance Allowance
- Higher rate: From £101.75 to £108.55
- Lower rate: From £68.10 to £72.65
Disability Living Allowance (Care Component)
- Highest rate: From £101.75 to £108.55
- Middle rate: From £68.10 to £72.65
- Lowest rate: From £26.90 to £28.70
Disability Living Allowance (Mobility Component)
- Higher rate: From £71 to £75.75
- Lower rate: From £26.90 to £28.70
Personal Independence Payment (Daily Living Component)
- Enhanced rate: From £101.75 to £108.55
- Standard rate: From £68.10 to £72.65
Personal Independence Payment (Mobility Component)
- Enhanced rate: From £71 to £75.75
- Standard rate: From £26.90 to £28.70
Industrial Injuries Disablement Benefit
- 100% Disablement: From £207.60 to £221.50
- 90% Disablement: From £186.84 to £199.35
- 80% Disablement: From £166.08 to £177.20
Statutory Paternity and Maternity Pay
- Standard rate: From £172.48 to £184.03
Statutory Sick Pay
- Standard rate: From £109.40 to £116.75
Additional State Pension
- Maximum amount: From £204.68 to £218.39
Incapacity Benefit
- Long-term: From £130.20 to £138.90
- Short-term (under state pension age): From £116.20 to £124.00 (higher rate)
Severe Disablement Allowance
- Basic rate: From £92.20 to £98.40
- Age-related addition (Higher rate): From £13.80 to £14.70
Statutory Adoption Pay
- Standard rate: From £172.48 to £184.03
The DWP’s decision to increase benefits and pensions by 6.7% in April 2024 aims to assist individuals in coping with rising living costs. This adjustment ensures that benefits keep pace with inflation, providing necessary financial relief to many households across the UK.
For a comprehensive list of the benefits and pensions affected by this increase, individuals can visit the official UK Government website.
FAQs:
When will the benefit increase take effect?
The increase will take effect on April 8, 2024.
What is the percentage increase for the state pension?
The basic and new state pensions will rise by 8.5%.
Why is there a 6.7% increase in benefits?
This increase is based on the Consumer Price Index (CPI) for September 2024, reflecting inflation rates.
Will the earnings threshold for benefits change?
No, the earnings threshold remains unchanged at £123 for certain benefits like statutory adoption pay.