MILLIONS on Universal Credit and benefits will see their payments increase in April, despite Britain’s ballooning welfare bill.
Financial support such as Universal Credit, PIP and Carers Allowance increases every year to keep pace with rising costs.
The government typically uses September’s inflation figure to determine how much to increase benefits by and then the amount rises each April.
Inflation hit 3.8% last month, but those claiming Universal Credit are in line for an even bigger rise.
That is because the new Universal Credit Act introduced to Parliament this year will mean those claiming the benefit are set for an extra boost.
The latest figures mean the UC standard allowance is set to rise from £92 to £98 per week for single people.
Meanwhile it will rise from £145 to £154 per week for couples.
The news comes as Rachel Reeves has unveiled a a range of money-raising tactics as the Chancellor tries to fill a £20billion black hole and fund a welfare shake-up.
The Chancellor will freeze income tax thresholds until 2030 – a move that will hit workers wages.
She will also cap the amount that workers can pay into salary sacrifice schemes.
More benefits expected to rise – how much more will YOU get
And it is not only those claiming Universal Credit who are set for a boost in pay.
The government is legally required to increase some benefits in line with inflation such as PIP and Carers Allowance.
Today’s announcement means payments for the daily living component of PIP will rise from £110.40 a month to £114.59 for those claiming the higher rate.
While those claiming the lower rate will see their pay rise from £73.90 every four weeks to £76.71.
Meanwhile those claiming the higher rate of mobility will see their payment rise from £29.20 to £30.31.
And those claiming the higher rate could see their payment rise to £77.05 to £79.98.
From April the amount for people claiming Cares Allowance is set to increase from £83.30 to £86.47 or 3.8%.
Attendance Allowance helps with extra costs if you have a disability severe enough that you need someone to help look after yo
It’s paid at two different rates and how much you get depends on the level of care you need.
In April both rates are set to now set to increase by 3.8%.
That means payments will rise to £76.71 for lower amount or £114.59 for the higher rate.
The full list of benefits set to increase include:
- Disability living allowance
- Attendance allowance
- Incapacity benefit
- Severe disablement allowance
- Industrial injuries benefit
- Additional state pension
- Guardian’s allowance
- Universal Credit
- Cares Allowance
- PIP
How to check what you’re entitled to
You can find free-to-use online benefits calculators to work out what you’re entitled to.
For example, Entitledto’s free calculator works out whether you qualify for various benefits, tax credits and Universal Credit.
If you run out of time to complete the form in one go you can save your results and come back later but you will need to sign in or register.
You can do this using Facebook, Google or by setting up an Entitledto account.
You can also use Policy in Practice’s calculator to not only find out which benefits you could receive but also to find out how much cash you’ll have leftover each month after paying for housing costs.
Usefully, it also includes links to claim for benefits.
Charity Turn2Us’ benefits calculator works out what means-tested benefits you might be entitled to, as well as whether you qualify for carers allowance.
It points out that it doesn’t calculate non-means tested benefits and contributory benefits, but it will include these in your results if you’re already getting them.
The calculator has advice on how you may be able to claim additional support to help you through the Covid period too.
Before using the tools, make sure you have key financial information to hand, such as bank and savings statements, and information on pensions and existing benefits.
If you live with a partner or family, get their basic financial information together too as this could affect your claim.
Once you’ve used the tools you can use the contact information on Gov.uk to get the ball rolling and apply for what you’re owed.
Are you missing out on benefits?
YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to
Charity Turn2Us’ benefits calculator works out what you could get.
Entitledto’s free calculator determines whether you qualify for various benefits, tax credit and Universal Credit.
MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto’s data.
You can use Policy in Practice’s calculator to determine which benefits you could receive and how much cash you’ll have left over each month after paying for housing costs.
Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.
