Millions to see DWP payments increase due to major change in April

April is the start of the new tax year and with it comes changes to Universal Credit as well as other various allowances and benefits. In many cases the government has committed to giving increases in line with inflation of 10.1% to help people cope with the cost of living.

Some of the other key changes you can expect to see in April include PIP, Pension Credit, Attendance Allowance rates, Housing Benefit and Carers’ allowances. The changes are expected to impact over 22.4 million people in the UK who receive Department of Work and Pensions (DWP) and HMRC benefits, as per Gov.uk.

Universal Credit

Next month will see the rate of Universal Credit increase by 10.1 percent with the new amounts looking like this:

• Single people under 25, the amount will increase from £265.31 to £292.11 per month.
• Single people aged 25 or over, the amount will rise from £334.91 to £368.74 per month.
• Joint claimants, where both are under 25 will see a rise from £416.45 to £458.51 per month.
• The rate will rise from £525.72 to £578.82 for those ina couple where one or both are 25 or over.

Other rates including child amounts, disabled child additions, limited capability for work, carer amount and childcare cost amounts will see the same increase of 10.1 percent, as per The Express.

Pension Credit

Pensions Credit will also increase and some people may get extra amounts if they have other responsibilities and costs. The top-up and extra amounts are known as 'Guarantee Credit', and the new rates from April 2023 will be:

• Single: £201.05per week (from £182.60)
• Couple: £306.85 per week (from £278.70)

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Personal Independence Payment (PIP)

PIP is there to support people with a long-term health condition or disability, and the sum is split into two parts -the daily living component and mobility component. Each part is then split into two tiers, depending on the level of support a person’s condition requires.

Daily living tasks

• Standard rate - £68.10per week (up from £61.85)
• Enhanced rate - £101.75 per week (up from £92.40)

Mobility tasks

• Standard rate - £26.90 per week (up from £24.45)
• Enhanced rate - £71 per week (up from £64.50)

Attendance Allowance

Attendance Allowance is for people over state pension age who need help with personal care or supervision due to illness or a disability and the new lower and higher payment rates for April 2023 will be:

• Lower rate: £68.10 per week (up from £61.85)
• Higher rate: £101.75 per week (up from £92.40)

Carer’s Allowance

Carer’s Allowance is a benefit distributed to people who care for another person (who receives certain disability benefits) for at least 35 hours a week.

From April 2023, the allowance will increase from £69.70 a week, to £76.75 a week. This could see eligible claimants receive up to £3,991 a year, which could be equivalent to around £332 a month.

The list of benefits and payments overseen by the DWP set to receive a 10.1 percent pay rise includes:

• Housing Benefit
• Attendance Allowance
• Income Support
• Jobseeker’s Allowance
• Maternity Allowance
• State pension
• Statutory sick pay
• Widow’s Benefit.

The full list of increases for state pensions, benefits, and the increased benefit cap can be found online at Gov.uk.

Read more:

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Sources used:

- The Express 'DWP update: All the changes to expect in April for Universal Credit and other benefits'

- Somerset Live 'DWP increasing Universal Credit and six other benefits from April - full list of changes'

- Gov.uk 'Benefit and pension rates 2023 to 2024'