Full list of benefits to increase next year including Universal Credit and state pension

MILLIONS of households will get a benefit payment boost next year as rates are set to rise.

Jeremy Hunt today confirmed a raft of benefits including Universal Credit will rise with September’s inflation rate of 10.1% in his Autumn Budget.

The move will cost £11billion and help 10million households, as Mr Hunt said he was committed to “protect the most vulnerable”.

He said those on Universal Credit will benefit by around £600 a year.

He also announced:

• Up to £1,350 in cost of living payments
• Pension triple lock to stay in £870 boost for seniors
• Benefits including Universal Credit and pension credit to rise with inflation
• New work coach requirements for Universal Credit
• Social housing rents to rise 7%
• Freeze on income tax and National Insurance thresholds
• Stamp duty cut to end in 2025
• Typical energy bills to be capped at £3,000
• Minimum wage to rise to £10.42 an hour

It comes after previous concerns that the government would raise them in line with wages instead, which would’ve left millions of people hundreds of pounds worse off.

The Department for Work and Pensions (DWP) usually uses September’s inflation figures to make the decision on uprating benefit and pension payments from the following April.

Following today’s Autumn Statement, the government has now confirmed the full list of benefits that will rise.

An increase in line with inflation is designed to help people keep up with rising prices.

Last April, benefits rose by 3.1% but prices have soared even more since then.

The inflation rate for October came in at 11.1%.

Below we explain how much each benefit is rising by from April 2023, based on the 10.1% inflation rate.

It’s always worth checking that you’re getting all the benefits you’re entitled to by using a free benefits checker.

Universal Credit

Standard allowance (per month)

• For those single and aged under 25, the standard allowance will rise from £265.31 to £292.11 
• For those single and aged 25 or over, the standard allowance will rise from £334.91 to £368.74
• For joint claimants both under 25, the standard allowance will rise from £416.45 to £458.51
• For joint claimants where one or both are 25 or over, the standard allowance will rise from £525.72 to £578.77

Extra amounts for children

• For those with a first child born before April 6, 2017, the extra amount is going up from £290 to £319.29
• For those with a child born on or after April 6, 2017 or second child and subsequent child, the extra amount is going up from £244.58 to £269.28
• For those with a disabled child, the lower rate addition payment is going up from £132.89 to £146.31 and the higher rate from £414.88 to £456.78

Extra amounts for limited capability for work

• For those deemed to have limited capability for work, the extra amount is going up from £132.89 to £146.31 
• For those deemed to have limited capability for work or work-related activity, the extra amount is going up from £354.28 to £390.06

Extra amounts for being a carer

Universal Credit claimants can get an additional amount if they’re caring for a severely disabled person for at least 35 hours a week.

The amount you get a month will rise from £168.81 to £185.86.

Increased work allowance

• The higher work allowance (no housing amount) for someone claiming Universal Credit with one or more dependent children or limited capability for work is going up from £573 to £630.87
• The lower work allowance for someone claiming Universal Credit with one or more dependent children or limited capability for work is going up from £344 to £378.74

Housing benefit

Single person

• Aged under 25: Increasing from £61.05 to £67.22 
• Any age and on main phase ESA: Increasing from £77 to £84.78
• Aged between 25 and state pension credit age: Increasing from £77 to £84.78 
• Has reached pension age: Increasing from £197.10 to £217

Lone parent

• Aged under 18: Increasing from £61.05 to £67.22 
• Any age and on main phase ESA: Increasing from £77 to £84.78 
• Aged between 18 and state pension credit age: Increasing from £77 to £84.78 
• Has reached state pension age: Increasing from £197.10 to £217 

Couple

• Both aged under 18: Increasing from £92.20 to £101.51 
• One or both aged between 18 and state pension credit age: Increasing from £121.05 to £133.27 
• Any age and on main phase ESA: Increasing from £121.05 to £133.27 
• One or both have reached pension age: Increasing from £294.90 to £324.68

Other

• Dependent child/young person aged under 20: Increasing from £70.80 to £77.95 

Pension Credit

Retirees on a low income can get it topped up via Pension credit.

Pension Credit will rise from £182.60 a week to £201.04 or for couples, from £278.70 to £306.85.

If your income is lower than this, you should be eligible for the benefit.

You could get the “Savings Credit” part of Pension Credit if both of the following apply:

• you reached state pension age before 6 April 2016
• you saved some money for retirement, for example, a personal or workplace pension

This part of Pension Credit will rise from £14.48 a week to £15.94 or for couples, from £16.20 to £17.84.

There are also top-up amounts, for instance, if you’re caring for someone else or are disabled.

You can find out more about Pension Credit including how to apply in our guide.

Attendance Allowance

Attendance Allowance helps with extra costs if you have a disability severe enough that you need someone to help look after you.

It’s paid at two different rates and how much you get depends on the level of care that you need because of your disability.

The higher rate will rise from £92.40 to £101.73, while the lower rate will also go up from £61.85 to £68.10.

Carer’s Allowance

You can claim Carer’s Allowance if you care for someone at least 35 hours a week and they get certain benefits.

The rate will increase from £69.70 to £76.74 a week.

Disability Living Allowance

The Disability Living Allowance is being replaced by Personal Independence Payment (PIP) for disabled people.

You can only apply for DLA if you’re under 16. Older people whose DLA claim hasn’t come to an end may see payments go up.

• Highest amount will rise from £92.40 to £101.73
• Middle amount from £61.85 to £68.09 
• Lowest amount from £24.45 to £26.92

And for the mobility component:

• Higher amount from £64.50 to £71.01 
• Lower amount from £24.45 to £26.92

Employment Support Allowance

Employment Support Allowance (ESA) tops up workers’ pay if they’re on a low income.

• Under 25 years old, from £61.05 to £67.22
• Age 25 and older, from £77 to £84.78
• Lone parent under 18, from £61.05 to £67.22
• Lone parent 18 or over, from £77 to £84.78 

There are also further rates for couples, those with disabilities or caring responsibilities.

Jobseekers Allowance

Jobseekers Allowance (JSA) supports those who are out of work while they look for a job.

It is being replaced by Universal Credit but if you are still claiming it you’ll see payments go up next year.

For under 25-year-olds, contribution-based and income-based payments will go up from £61.05 a week to £67.22, and from £77 to £84.78 a week for those who are older.

There are also further rates for couples, those with children, disabilities or caring responsibilities.

Maternity, paternity, adoption and shared parental pay

Pay for mums and dads taking time away for kids, including those adopting, will rise next year too.

The statutory rates will rise from £156.66 to £172.48, for maternity, adoption, paternity and shared parental pay.

Parental bereavement pay will also rise by the same amounts.

Maternity allowance

New mums who don’t qualify for standard maternity pay could still get a payment adding up to thousands of pounds from Maternity Allowance.

It will rise from £156.66 a week to £172.48 from April.

Income support

Income support is extra money for people who don’t have enough to live on.

How much you get depends on your personal circumstances, however if you’re single and aged between 16 and 24, your weekly payments start from £61.05.

It will go up to £67.22 a week – a £6 a week pay rise, from April, 2023.

Personal Independence Payment

Rates for Personal Independence Payments (PIP) will rise from next April.

PIP helps with the extra cost of living for those with illnesses or disabilities.

Payments for the daily living component will rise from £92.40 to £101.73 for enhanced and from £61.85 to £68.10 for standard.

For the mobility component it will rise from £64.50 to £71.01 for enhanced, and £24.45 to £26.92 for standard.

State Pension

The full rate of the new State Pension will rise from £185.15 a week to 203.85.

For the basic part of the old state pension, the rate will rise from £141.85 to £156.18.