Universal Credit and other benefits look set to get big payment boost as inflation rises

Inflation and wage levels will determine the rise in most payouts, the Department of Work and Pensions has said. All cash payments get an annual uprating which comes into effect each April, with a 3.1 percent increase in place for the current financial year.

This was is in line with the September 2021 Consumer Prices Index (CPI) figure.

The previous increase was based on inflation, which has now reached 9.4 percent, meaning a big cash boost could be on the way for benefits recipients.

Liberal Democrat MP Wendy Chamberlain asked ministers what factors will be taken into account when benefits are next reassessed.

In a written parliamentary answer, DWP minister David Rutley said: “The Secretary of State must increase certain benefits by at least the increase in prices or earnings.

“If she considers it appropriate, having regard to the national economic situation and any other matters which she considers relevant, she may increase others by such a percentage(s) as she thinks fit.

“Her review will commence in the autumn and her decisions will be announced to Parliament in November in the normal way.”

The DWP has already said it will not bring in any widespread increases in the meantime to ease the cost of living crisis.

READ MORE: Inheritance tax: 11 ways to slash IHT bills as families pay more 

Former Chancellor Rishi Sunak introduced a cost of living support package, including a £650 one-off payment for people on low incomes.

MPs asked Work and Pensions Secretary Therese Coffey why the Government had decided to make these one-off cost-of-living payments instead of boosting the benefits system.

She said: “We didn’t want to necessarily change ratings beyond what we’d already done with my annual rating review.

“Some of that would mean locking in, but we come back, frankly, to some of the challenges of our IT systems.

“UC (Universal Credit) is far more agile, our legacy benefits aren’t, and it’s absolutely critical that people on both legacy benefits and UC were to get this payment.

“We’re confident that we’ll get those payments out the door.”

Below is a list of all the DWP payment rates for 2022-2023, with the previous amount for 2021-2022 in brackets.

Weekly rates are shown, unless otherwise stated.

DON’T MISS:
Heat pump tumble dryer ‘will save you £104 per year’ [INSIGHT]
WASPI women in new state pension compensation warning [WARNING]
Yorkshire Building Society now offering 5% on savings – are you eligible for account? [COMPETITIVE]

Pension Credit

Single: £182.60 (from £177.10)

Couple: £278.70 (from £270.30)

Personal Independence Payment (PIP)

Daily Living Component

Enhanced: £92.40 (from £89.60)

Standard: £61.85 (from £60.00)

Mobility Component

Enhanced: £64.50 (from £62.55)

Standard: £24.45 (from £23.70)

State Pension

New State Pension

£185.15 (from £179.60)

Old State Pension

Category A or B Basic: £141.85 (from £137.60)

Category B (lower) basic pension – spouse or civil partner’s insurance: £85 (from £82.45)

Category C or D – non-contributory: £85 (from £82.45)

Widow’s Pension

Standard rate: £126.35 (from £122.55)

Universal Credit (monthly rates shown)

Standard allowance

Single

Single under 25: £265.31 (from £257.33)

Single 25 or over: £334.91 (from £324.84)

Couple

Joint claimants both under 25: £416.45 (from £403.93)

Joint claimants, one or both 25 or over: £525.72 (from £509.91)

Child amounts

First child (born prior to 6 April 2017): £290.00 (from £282.60)

First child (born on or after 6 April 2017) or second child and subsequent child (where an exception or transitional provision applies): £244.58 (from £237.08)

Disabled child additions

Lower rate: £132.89 (from £128.89)

Higher rate: £414.88 (from 402.41)

Limited capability for work

Limited Capability for Work: £132.89 (from 128.89)

Limited Capability for Work and Work-Related Activity: £354.28 (from £343.63)

Carer amount

£168.81 (from £163.73)