The Department for Work and Pensions has unveiled that claimants of eight benefits are set to receive a “bumper” payment come April, following adjustments in the uprating of these benefits. In line with inflation, benefits will see a 1.7% boost, as the Labour Party government has confirmed.
Notably, the New and Basic State Pensions, along with the Minimum Guarantee in Pension Credit, are set for a 4.1% increase. Moreover, the Tax Credit service is scheduled to shut down on April 5, 2025, with all remaining accounts to be terminated.
Breaking down the changes, the standard allowance for Universal Credit will climb from £311.68 to £316.98 monthly for single claimants under 25, and from £393.45 to £400.14 for those aged 25 and above. Couples under 25 will witness their monthly sum go from £489.23 to £497.55, while those over 25 will see a rise from £617.60 to £628.10.
Additionally, individuals with limited capability for work can expect an uplift from £156.11 to £158.76 per month, and those unable to work or undertake work-related activities will have their benefit increased from £416.19 to £423.27 monthly. The earnings threshold for Carer’s Allowance is also set to rise from £151 to £196, reports Coventry Live.
Overall, social security benefits will experience a 1.7% increment. The monthly carer elements are also due to increase, going from £198.31 to £201.68.
The higher rate work allowance is set for a boost from £673 to £684 monthly, while the lower rate will see an increase from £404 to £411. Childcare costs are also on the up, with the amount claimable for one child going from £1,014.63 to £1,031.88 per month, and for two or more children, from £1,739.37 to £1,768.94.
In terms of Attendance Allowance for pensioners aged 66 and over who require aid due to long-term health conditions, the weekly lower rate will be bumped from £72.65 to £73.90, with the higher rate climbing from £108.55 to £110.40.
This non-means-tested weekly payment helps cover costs of pensioners (aged 66+) who need someone to ‘attend’ them due to long-term health conditions, including sensory disabilities or learning difficulties. You must have needed help or supervision for at least six consecutive months, or have been told by a medical professional that you have 12 months or less to live.
As for the Carer’s Allowance, it’s set for an uptick from £81.90 to £83.30 weekly. If you’re aged16+, earning less than £151a week (after tax), and providing 35+ hours of weekly care for someone who needs daily living help and is claiming certain benefits, you could be eligible for Carer’s Allowance.
The consumer finance website Money Saving Expert has pointed out: “If you spend a significant amount of time caring for someone with an illness or disability, you may be entitled to financial help in the form of Carer’s Allowance.
“Importantly, you DON’T need to be related to, or living with, the person you’re caring for. But you do need to be providing the care for one person for at least 35 hours a week (you don’t get extra if you care for more than one person), and you must be earning £151 or less a week (after tax).”
Rates for Disability Living Allowance (DLA) are set to increase, with the care component rates rising from £108.55 a week to £110.40 a week at the higher rate, middle rate jumping from £72.65 a week to £73.90 a week, and the lowest rate going up from £28.70 a week to £29.20 a week. For the mobility component of DLA, there will also be an uptick, with increases from £75.75 a week to £77.05 a week for the higher rate, and from £28.70 a week to £29.20 a week for the lower rate.
Personal Independence Payment (PIP) will also see a hike in its daily lower rate from £72.65 a week to £73.90 a week, and the higher rate going up from £108.55 a week to £110.40 a week. Mobility rates are climbing as well, from £28.70 a week to £29.20 a week at the lower rate and from £75.75 a week to £77.05 a week at the higher rate.
Increases are also on the horizon for the Pension Credit, Basic State Pension, and New State Pension. The standard minimum guarantee for Pension Credit and state pension will increase from £218.15 a week to £227.10 a week for single people, and £332.95 for couples.
Men born on or after April 6, 1951, or women born on or after April 6, 1953 are eligible to claim the new state pension.
The full new state pension is set to increase from £221.20 a week to £230.25 a week, while the full old basic state pension will rise from £169.50 a week to £176.45 a week. This applies to men born before 6 April 1951, or women born before 6 April 1953.