DWP confirms 2023 Universal Credit rates

Autumn Statement: Key announcements from Jeremy Hunt

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

An estimated 19.2 million families and 39.8 million individuals in Great Britain in receipt of Department of Work and Pensions (DWP) and HMRC benefits are due to see an increase in their payments to help with rising costs next year. Universal Credit claimants are one of the many benefit recipients who are legally due the raise, but what rates might be expected?

Announcing the plans on how he’d like to “go further” to support people most exposed to high inflation, Mr Hunt told the House of Commons during his Autumn Statement: “There have also been some representations to keep the uplift to working age and disability benefits below the level of inflation given the financial constraints we face.

“But that would not be consistent with our commitment to protect the most vulnerable so today I also commit to uprate such benefits by inflation with an increase of 10.1 percent. That is an expensive commitment costing £11billion.”

He continued: “But it means 10 million working-age families will see a much-needed increase next year. On average, a family on Universal Credit will benefit next year by around £600. And to increase the number of households who can benefit from this decision I will also exceptionally increase the benefit cap with inflation next year.”

How much Universal Credit a person receives depends on their individual circumstance, including age, whether they live in a couple, and whether they have children.

Each household gets one ‘standard allowance’ and currently, the rates are as follows:

  • Single and aged under 25 – £265.31 per month
  • Single and aged 25 and over – £334.91 per month
  • A couple both under 25 – £416.45 per month (for both)
  • A couple aged 25 and over – £525.72 per month (for both).

But, by honouring Mr Hunt’s pledge to increase Universal Credit rates in line with September 2022’s inflation rate, each standard allowance will see a 10.1 percent uplift.

Man slashes broadband bill from £504 a year to £180 [EXPLAINED]
Martin Lewis warns 800,000 pensioners missing out on up to £3,500 [ANALYSIS]
Pensioners protest ‘cruel’ frozen state pension policy [INSIGHT]

However, it should be noted, the childcare cost amount component of the benefit will not see an increase, as this aligns with the childcare element of Working Tax Credit.

Universal Credit 2023/24 rates

The DWP has now confirmed the new weekly payment rates in a full online guide to the increases for state pensions, benefits and the increased benefit cap on the GOV.UK website.

Standard allowance monthly rate

  • Single under 25: £292.11 (a difference of £26.80)
  • Single 25 or over: £368.74 (a difference of £33.83)
  • Joint claimants both under 25: £458.51 (a difference of £42.06)
  • Joint claimants, one or both 25 or over: £578.82 (a difference of £53.10)

To view the full list of increases, including extra amounts, the full list is available here. The new rates will come into effect from April 2023.

Who is entitled to Universal Credit?

Universal Credit is a benefit distributed by the DWP to people who are on a low income or are unemployed and need help with their living costs.

The support is available to Britons aged 18 and over and under the state pension age who have £16,000 or less in cash, savings or investments.

However, for those who already claim other benefits, Universal Credit is replacing the following:

  • Child Tax Credit
  • Housing Benefit
  • Income Support
  • Income-based Jobseeker’s Allowance (JSA)
    Income-related Employment and Support Allowance (ESA)
  • Working Tax Credit.

This means if a person or their partner starts claiming Universal Credit, they’ll stop getting these benefits and tax credits.

However, it shouldn’t impact other benefits a person may be receiving such as Personal Independence Payment (PIP) or Carer’s Allowance.

If a person thinks they may be eligible for the benefit, they can apply using the online Universal Credit tool.

Source: Read Full Article