Universal Credit and PIP are rising this year – how much will you get from the DWP?

Martin Lewis: 500,000 more people now eligible for Universal Credit

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Universal Credit has served as a lifeline for many who are out of work, unable to work, or who are on a low income. Whereas PIP is a benefit intended to assist those who have health challenges or a disability in the long-term. Regardless of what payment Britons receive, the support from the Department for Work and Pensions (DWP) can often be invaluable.

In many circumstances, people will use these payments in order to get by in their day-to-day lives.

Consequently, it is likely to be good news that benefits issued by the DWP will undergo an increase this year.

The Secretary of State for Work and Pensions, Dr Therese Coffey, recently confirmed an increase in a statement made to the House of Commons.

She said: “All benefits will be increased in line with CPI – which was 0.5 percent in the relevant reference period.

“This includes working-age benefits, benefits to help with additional needs arising from disability, carers’ benefits, pensioner premiums in income-related benefits, Statutory Payments, and Additional state pension.”

As a result, those who are in receipt of PIP and Universal Credit should see a difference in their bank balance once the changes are implemented this year.

But how much are Britons set to receive from the DWP?

PIP is currently split into two parts – daily living and mobility – with each part having two tiers – enhanced and standard.

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For the daily living component, the standard rate is set to increase from its current level of £60.00 to £61.85.

Similarly, the enhanced rate will also increase, but this time from £89.60 to £92.40.

Mobility rates for PIP are also set to undergo change for those in receipt of them.

The standard rate will rise from £23.70 to £24.45, while the enhanced rate is set to increase from £62.55 to £64.50.

PIP is not the only increasing benefit, however, and rates have also been confirmed for Universal Credit this new year.

Universal Credit is usually paid according to a person’s circumstances, such as whether they are single or in a relationship, and whether or not they have children, as well as their age.

Single people under 25 can expect to receive £265.31, an increase from the current level of £257.33.

Those singletons over the age of 25 will see an increase from £324.84 to £334.91.

Couples where both people are under 25 will now receive £416.45, in a jump from £403.93.

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Where one or both people in a couple are 25 or over, the sum will stand at £525.72 this year, compared to £509.91.

Child elements of Universal Credit will also change in the coming year. For a first child born prior to April 6, 2017, the sum will increase from £282.60 to £290.00.

However, where the first child was born on or after April 6, 2017, or for second and subsequent children, the sum will be £244.58, increasing from £237.08.

It is worth noting Universal Credit is usually paid on a monthly basis to those who are eligible.

PIP is calculated weekly, but paid every four weeks. 

The changes in payments will come into force in April 2022. 

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