New pay rates for Universal Credit, PIP and other benefits have come into play affecting millions of households. Most Department for Work and Pensions (DWP) benefits have risen by 10.1 per cent as part of the annual uprating in line with last September’s inflation rate.
This means more than 39 million individuals and 19 million families will receive extra cash into their bank accounts amid the cost of living crisis. However, this may not be felt straightaway by many people due to payments made in arrears.
It comes after Chancellor Jeremy Hunt confirmed that rates would rise in line with inflation at a cost of £11 billion to the UK Government. The uprating means that on average, a family on Universal Credit will benefit by around £600 this year.
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Below is a summary of the new weekly payment rates, weekly rates are shown, unless otherwise stated, reports the Daily Record.
Attendance Allowance
Carer’s Allowance
Disability Living Allowance / Child Disability Payment
Care Component
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Highest: £101.75 (from £92.40)
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Middle: £68.10 (from £61.85)
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Lowest: £26.90 (from £24.45)
Mobility component
Employment and Support Allowance (ESA)
Incapacity Benefit (long-term)
Income Support
Jobseeker’s Allowance (JSA – contributions based)
Jobseeker’s Allowance (JSA – income-based)
Maternity/Paternity/Shared Parental Allowance
Pension Credit
Personal Independence Payment (PIP) + Adult Disability payment
Daily Living Component
Mobility Component
State Pension
Widow’s Pension
Universal Credit (Monthly rates shown)
Standard allowance
Couple
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Joint claimants both under 25: £458.51 (from £416.45)
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Joint claimants, one or both 25 or over: £578.82 (from £525.72)
Child Benefit payment rates for 2023/24
There are two Child Benefit rates in place.
New rates per week – from April 2023
Guardian’s Allowance rates from April 2023
The new weekly rate for Guardian’s Allowance will be £20.40 – an increase of £1.85 on the current 2022/23 rate of £18.55.
Working Tax Credit rates for 2023/24 (yearly amount shown)
Working Tax Credit is paid to people who are in work and on a low income – it does not matter whether you are an employee or self-employed, and you do not need to have children to get the payment.
Child Tax Credit is paid to people who have children and is paid in addition to Child Benefit and the Scottish Child Payment – you do not have to be working to receive it.
Here are the details of the proposed new payment thresholds and rates for the 2023/24 financial year.
Working Tax Credit income threshold
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2023/24 rate: £7,455
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2022/23 rate: £6,770
Basic element
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2023/24 rate: £2,280
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2022/23rate: £2,070
Couples and lone parent element
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2023/24 rate: £2,340
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2022/23 rate: £2,125
30-hour element
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2023/24 rate: £950
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2022/23 rate: £860
Disabled worker element
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2023/24 rate: £3,685
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2022/23 rate: £3,345
Severe disability element
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2023/24 rate: £1,595
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2022/23 rate: £1,445
Child Tax Credit income threshold
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2023/24 rate: £18,725
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2022/23 rate: £17,005
Family element
Child and qualifying young person element
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2023/24 rate: £3,235
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2022/23 rate: £2,935
Child disability element
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2023/24 rate: £3,905
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2022/23 rate: £3,545
Severely disabled rate of the child disability element
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2023/24 rate: £1,575
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2022/23 rate: £1,430
You can read the full list of proposed payment rate and threshold changes from HMRC on the GOV.UK website here.
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