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Around 10 million families can expect an income boost next week as the Universal Credit payment rate rises by 10.1 percent. Chancellor Jeremy Hunt announced the plans during last November’s Autumn Statement, and the uplift could see some families receive hundreds more a year.
Universal Credit is a benefit distributed by the Department of Work and Pensions (DWP) to people who are on a low income or are unemployed and need help with their living costs.
How much Universal Credit a person receives depends on the individual’s circumstances, including age, whether they live in a couple, and whether they have children.
Each household gets one ‘standard allowance’ and, if eligible, additional payments on top of this to support other costs.
Universal Credit 2023/24 rates
By honouring Mr Hunt’s pledge to raise Universal Credit rates in line with September 2022’s inflation, the standard allowances will increase as follows:
- Single under 25: £292.11 (up from £265.31 per month)
- Single 25 or over: £368.74 (up from £334.91 per month)
- Joint claimants both under 25: £458.51 (up from £416.45 per month)
- Joint claimants, one or both 25 or over: £578.82 (up from £525.72 per month).
The childcare cost amount component of the benefit will not see an increase, as this aligns with the childcare element of the Working Tax Credit.
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Extra amounts for first and second children
Claimants with children can be entitled to additional payments, and the rate varies depending on how many children a person might have.
Most claimants only get extra payments for up to two children, but those whose children were born before April 6, 2017, or who were claiming for three or more children before that date can get payments for additional children.
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First child payments
- First child payments to parents with children born before April 6, 2017, will increase to £315 (up from £290)
- Payments for children born after April 2017 and second children/additional children will increase to £269.58 (up from £244.58).
Disabled child payments
Parents with disabled children are also entitled to further payments to help with costs. The increased rates include:
- The lower rate for parents of disabled children will increase to £146.31 (up from £132.89)
- The higher rate for severely disabled children will increase to £456.89 (up from £414.88).
Claimants with disabilities or health conditions
Britons with certain disabilities or health conditions that limit their ability to work can be eligible for further payments through the Limited Capability to Work component, on top of their standard Universal Credit.
Those eligible for the Limited Capability for Work rate will see payments increase from £132.89 to £146.31.
The Limited Capability for Work and Work-Related Activity amount will rise from £354.28 to £390.06
The full list explaining each individual increase can be found here, including extra amounts. The new rates will come into effect from April 2023.
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Who is entitled to Universal Credit?
Universal Credit 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.
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.
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.
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