Three Key Benefits You Might Be Overlooking – One Even Offers a Free TV License!
Next month, millions of individuals receiving various benefits are set to see a significant boost in their payments. This increase is designed to help offset the rising costs of essentials like food and other goods, as confirmed by the Department for Work and Pensions (DWP).
The DWP will implement a 1.7% increase in many benefits, though some, such as the State Pension, will see even more substantial rises. The adjustment will affect a wide array of benefits, including Disability Living Allowance (DLA), Personal Independence Payment (PIP), and Universal Credit. The specific amount by which your payments will increase depends on your personal circumstances. Below is a comprehensive breakdown of the benefits set to see increases:
Attendance Allowance
Attendance Allowance is designed to assist with additional costs if you have a disability that requires someone to help care for you. It is available at two different rates, depending on your level of care needs. Starting in April, both rates will increase by 1.7%. The higher rate will rise from £108.55 to £110.40, while the lower rate will increase from £72.65 to £73.90.
Carer’s Allowance
If you provide at least 35 hours of care each week to someone who receives one of the following benefits, you may be eligible for Carer’s Allowance:
- Personal Independence Payment – daily living component
- Disability Living Allowance – middle or highest care rate
- Scottish Adult Disability Living Allowance – middle or highest care rate
- Attendance Allowance
- Pension Age Disability Payment
- Constant Attendance Allowance at or above the normal maximum rate with an Industrial Injuries Disablement Benefit
- Constant Attendance Allowance at the basic (full day) rate with a War Disablement Pension
- Armed Forces Independence Payment
- Child Disability Payment – middle or highest care rate
- Adult Disability Payment – daily living component at the standard or enhanced rate
From April, the amount received will increase from £81.90 to £83.30 per week, reflecting a 1.7% rise.
Child Benefit
Child Benefit is available to parents responsible for a child under 16, or under 20 if they are in approved education or training. Only one person in a household can claim this benefit, and there is no cap on the number of children you can claim for. There are two rates of Child Benefit: one for the eldest child and another for each additional child. Starting in April, the eldest or only child rate will rise from £25.60 to £26.05, marking a 1.7% increase. The rate for additional children will go up from £16.95 to £17.25, also reflecting a 1.7% increase.
Disability Living Allowance (DLA)
DLA assists individuals with costs related to their disabilities. It is currently being phased out in favor of Personal Independence Payment (PIP), and new applications for DLA are only accepted for those under 16. However, legacy claimants will see their rates increase by 1.7%. DLA is paid at three levels:
- The highest amount will increase from £108.55 to £110.40
- The middle amount will rise from £72.65 to £73.90
- The lowest amount will increase from £28.70 to £29.20
Additionally, those receiving the mobility component will see increases as well:
- The higher mobility amount will rise from £75.75 to £77.05
- The lower mobility amount will increase from £28.70 to £29.20
Employment Support Allowance (ESA)
Employment Support Allowance (ESA) provides financial support to individuals whose ability to work is affected by a disability or health condition. Starting in April, rates will increase by 1.7%. Single individuals will see their payments rise as follows:
- Under 25 years old: from £71.70 to £72.90
- Aged 25 and older: from £90.50 to £92.05
- Lone parent under 18: from £71.70 to £72.90
- Lone parent 18 or over: from £90.50 to £92.05
Couples will also see their rates adjusted:
- Both under 18 years old: from £71.70 to £72.90
- Both under 18 years old with a child: from £108.30 to £110.15
- Both over 18: from £142.25 to £144.65
- Under 25, partner under 18: from £71.70 to £72.90
- Claimant 25 or over, partner under 18: from £90.50 to £92.05
The premium for those with an enhanced disability will increase from £20.85 to £21.20 for singles and from £29.75 to £30.25 for couples. Payments for those with severe disabilities will rise from £81.50 to £82.90 for singles, and from £163 to £165.80 for couples on the higher rate. Carers for someone with a severe disability will see their payment increase from £45.60 to £46.40.
Pensioners will also benefit from a 1.7% increase. The work-related activity component will rise from £35.95 to £36.55, while the support component will go up from £47.70 to £48.50.
Housing Benefit
Housing Benefit assists individuals with rental costs if they are unemployed, on a low income, or receiving benefits. This benefit is currently being phased out, with claimants transitioning to Universal Credit. Individuals can only apply if they have reached state pension age or if they are in supported, sheltered, or temporary accommodation. Rates for existing claimants will increase by 1.7%. Under-25s will see their personal allowances rise from £71.70 to £72.90, while those over 25 will see theirs increase from £90.50 to £92.05. Couples under 18 will experience a rise from £108.30 to £110.15, while couples over 18 will see an increase from £142.25 to £144.65. The rate for dependent children will increase from £83.24 to £84.66. A single pensioner will see their personal allowance increase from £83.24 to £84.66, while a couple of pensioners will see theirs rise from £352 to £366.
New-style Jobseeker’s Allowance (JSA)
JSA replaces income-based Jobseeker’s Allowance and provides support for those who are currently unemployed while searching for work. Payments are set to increase by 1.7%. For those under 25, JSA payments will rise from £71.70 to £72.90, while those over 25 will see theirs increase from £90.50 to £92.05. Couples under 18 will see their payments increase from £71.70 to £72.90, while those over 18 will experience a rise from £142.25 to £144.65. A single pensioner will see their payments increase from £127.65 to £135.05, while a couple at state pension age will receive £201.95, up from £190.70. Rates for those with disabilities will also see a 1.7% increase.
Maternity Allowance
New mothers who do not qualify for standard maternity pay, including those who are self-employed, can claim Maternity Allowance. This will increase from £184.03 per week to £187.18 starting in April.
Pension Credit
Pension Credit is designed for individuals of state pension age with a low income to help with living costs. Some Pension Credit payments are set to increase by more than the standard 1.7% applied to most benefits. Guaranteed Pension Credit payments will rise by 4.1%, from £218.15 a week to £227.10 for single claimants and from £332.95 to £346.60 for couples. A single disabled Pension Credit claimant will see payments rise by 1.7% from £81.50 to £82.90, while couples where both claimants qualify for disability payments will see their amount rise from £163 to £165.80.
If you qualify for the “Savings Credit” portion of Pension Credit, which applies if you reached state pension age before April 6, 2016, and have saved for retirement, the maximum payments will increase from £17.01 per week to £17.30 for singles and from £19.04 to £19.36 for couples.
Personal Independence Payments (PIP)
PIP is intended to cover the additional living costs faced by those with long-term illnesses or disabilities. Payments will rise by 1.7% in April. The daily living component will see the enhanced rate go up from £108.55 to £110.40, while the standard rate will increase from £72.65 to £73.90. The mobility component will similarly rise from £75.75 to £77.05 for the enhanced rate and from £28.70 to £29.20 for the standard rate.
State Pension
The state pension will increase from £11,502.40 to £11,975 per year, marking a £473 or 4.1% boost. This rise is attributed to the triple lock system, which ensures that the state pension increases in line with the highest of wage growth, 2.5%, or inflation figures from September. This year, wage growth applies, resulting in a 4.1% increase. The full rate of the new State Pension will go up from £221.20 a week to £230.25, and the basic part of the old state pension will see an increase from £169.50 to £176.45.
Statutory Parental Pay
The rates for Statutory Parental Pay, which includes maternity, paternity, shared parental, adoption, and parental bereavement payments, will also increase by 1.7%. Payments will rise from £184.03 a week to £187.18.
Statutory Sick Pay
You may be eligible for Statutory Sick Pay (SSP) if you are unable to work due to illness. Currently valued at £116.75 per week, SSP is paid by your employer for a maximum of 28 weeks. This will increase to £118.75 starting in April.
Universal Credit
Universal Credit is available for those not currently in work or to supplement the income of low earners. It was designed to consolidate several legacy benefits into a single monthly payment. Universal Credit payments are set to increase by 1.7% in April. Here are the details:
Standard Allowance (per month)
- For singles aged under 25, the standard allowance will rise from £311.68 to £316.98
- For singles aged 25 or over, the standard allowance will increase from £393.45 to £400.14
- For joint claimants both under 25, the standard allowance will rise from £489.23 to £497.55
- For joint claimants where one or both are 25 or over, the standard allowance will increase from £617.60 to £628.10
Extra Amounts for Children
- For those with a first child born before April 6, 2017, the extra amount will rise from £333.33 to £339
- For those with a child born on or after April 6, 2017, or for second and subsequent children, the extra amount will increase from £287.92 to £292.81
- For those with a disabled child, the lower rate addition will rise from £156.11 to £158.76, and the higher rate will increase from £487.58 to £495.87.
Extra Amounts for Limited Capability for Work
- For those with limited capability for work, the extra amount will rise from £156.11 to £158.76
- For those with limited capability for work or work-related activity, the extra amount will increase from £416.19 to £423.27
Extra Amounts for Being a Carer
Universal Credit claimants who care for a severely disabled person for at least 35 hours a week can receive an additional monthly amount, which will increase from £198.31 to £201.68. The work allowance rates will also see adjustments in April.
Increased Work Allowance
- The higher work allowance (no housing amount) for those claiming Universal Credit with one or more dependent children or limited capability for work will rise from £673 to £684
- The lower work allowance for those claiming Universal Credit with one or more dependent children or limited capability for work will increase from £404 to £411
Widowed Parent’s Allowance
Widowed Parent’s Allowance is available to parents with a dependent child whose partner passed away before April 5, 2017, provided they were married, in a civil partnership, or living together. The payment will increase from £148.40 to £150.90, reflecting a 1.7% rise.
The Benefits That Won’t Rise
It’s important to note that not all benefits will see an increase. Specifically, three components will remain unchanged, affecting the total amount of Universal Credit you may receive. These components are:
- Benefit Caps: First introduced in 2013, the benefit cap limits the total amount of benefits a household can receive. Universal Credit counts towards this cap, along with other benefits like Child Benefit, Housing Benefit, and Jobseeker’s Allowance. If your combined income exceeds this limit, your housing benefit or Universal Credit may be reduced.
- Capital Limits: These limits restrict the amount of savings you can have before losing eligibility for certain benefits. The lower limit remains at £6,000, meaning any savings below this amount will be ignored for benefits calculations. The upper limit is set at £16,000 and will not change, meaning that if your savings exceed this amount, you will be ineligible for benefits.
- Local Housing Allowance (LHA): LHA rates determine the maximum amount individuals renting from private landlords can claim in housing benefit or Universal Credit. These rates will remain unchanged until April 2025, affecting approximately 1.6 million households and potentially leading to a shortfall of up to £3,129 a year in areas with the highest rents.
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