HOUSEHOLDS should be aware of a number of benefit changes which could be announced in the Autumn Budget.
Rachel Reeves is set to deliver her statement on November 26.
Millions are waiting in anticipation to see what changes to Universal Credit and other benefits could also be announced.
It’s been suggested that benefit claimants could get a 3.8% pay increase and the two-child benefit cap could be scrapped.
However, any of these measures are yet to be confirmed, so you will have to wait for the Budget at the end of the month to see what changes are actually taking place.
Your benefit claim could increase
Financial support such as PIP, Carer’s Allowance and Attendance Allowance could increase by up to 3.8%.
The figures is not set in stone, but are very likely to be confirmed in the Autumn Budget.
That is because the government typically uses September’s inflation figure to determine how much to increase benefits and then the amount rises each April.
Inflation hit 3.8% during the month. This means someone claiming Attendance Allowance could see their payment rise to £76.71 for lower amount or £114.59 for the higher rate.
Meanwhile someone claiming the the daily living component of PIP could go up from to £110.40 a month to £114.59 for those claiming the higher rate.
A number of benefits are set for a boost, which will spell good news for millions of claimants.
These include:
- Industrial Injuries Disablement Benefit
- Child Benefit
- Guardian’s Allowance
- Personal independence payment (PIP)
- Carer’s Allowance
- Universal Credit
- State Pension
- Disability Living Allowance
Two-child benefit cap could be scrapped
Rachel Reeves is expected to scrap the two-child benefit cap and replace it with a taper system.
The current rule means that low income families do not get any additional means-tested benefits for their third child or any subsequent children they have.
This includes benefits such as child tax credits and income support.
It means that families with three or more kids may still be missing out on cash they’re eligible for.
Who’s exempt from the two-child benefit cap?
The two-child benefit cap means that you can only get more child tax credit or Universal Credit for your third (or more) child if:
- They were born before April 6, 2017
- They are disabled (disabled child element only)
- You qualify for an exception in child tax credit or special circumstances apply in Universal Credit
You qualify for an exception or special circumstances for each third (or subsequent) child if:
- You have adopted them or other children in your household
- You receive guardian’s allowance for them or other children in your household
- They are the second (or more) child born in a multiple-birth
- They or other children in your household are the offspring of one of your children who is under 16 years old
- They or other children in your household are not your child or stepchild, and you look after them under a court order
- They or other children in your household are not your child or stepchild and you look after them under an arrangement with Social Services (except for formal foster care)
- They were conceived as a result of rape, and you do not live with the perpetrator
The rumour was first revealed by The Sun, with precise detail still under discussion and has not yet been finalised.
A review by the government’s Child Poverty Taskforce recently concluded that it would help lift thousands of kids out of poverty.
No changes to PIP claims..yet
The DWP is plotting a reform to PIP claims, but no changes are expected to be announced in the upcoming Budget.
The benefit designed to help you cover day-to-day costs if you are suffering from a long-term mental health or physical condition.
Labour previously set out plans to tighten the rules for claiming PIP.
It was part of an aim to shave £5billion a year off the nation’s welfare budget and help more people to return to work.
New guidance was set out and that included shaking up the PIP scoring system.
It was proposed that claimants would needing to score at least four points on one specific daily living activity to qualify.
At the time, it was estimated that around 800,000 people lose out on their claim.
However, this was scrapped over the summer after facing huge backlash from charities and MPs.
Instead, the government said it would launch a review into the rules for claiming the benefit, but this could still include tightening up eligibility.
But this means that any changes to PIP have been postponed until after the review takes place.
A final outcome on the review is expected to be announced next year, with Sir Stephen Timms, a minister in the Department for Work and Pensions (DWP) leading the process.
What is the Budget?
THE Budget is big news and where you’ll often hear announcements about taxes. But what exactly is it?
The Budget is when the Government outlines its plans for the economy including taxation and spending.
The Chancellor of the Exchequer delivers a speech in the House of Commons and announces plans for things like tax hikes, cuts and changes to Universal Credit and the minimum wage.
At the same time, the Office for Budget Responsibility (OBR) publishes an independent analysis of the UK economy.
Usually, the Budget is a once-a-year event and usually takes place in the Autumn, with a smaller update known as the Spring Statement.
But there have been exceptions in recent years when there have been more updates, or the announcements have taken place at different times, for example during the pandemic or when there is a General Election.
On the day of the Budget, usually a Wednesday, the Chancellor is photographed outside No 11 Downing Street with the red box.
She then heads to the House of Commons to deliver her speech, at around 12.30 following Prime Minister’s Questions (PMQs).
Changes announced in the Budget are sometimes implemented the same day, while others may not have a set date.
For example, a change to tobacco duty usually happens on the same day, pushing up the price of cigarettes.
Some tax changes are set to come in at the start of a new tax year, which is April 6.
Other changes may need to pass through Parliament before coming into law.
