A range of Department for Work and Pensions (DWP) benefit changes are scheduled to take effect in April, impacting a variety of benefits. Key changes include social security benefits increasing by 1.7%, the earnings threshold for Carer’s Allowance rising, and updates to Universal Credit debt repayments.
These adjustments aim to improve financial conditions for millions of claimants. Notably, the Universal Credit debt repayment changes are expected to enhance the financial situation of around 1.2 million claimants, providing an extra £420 annually.
Other important updates include the closure of the Tax Credit service, deadlines for voluntary National Insurance contributions for the contribution years 2006/07 to 2015/16, and the introduction of a new Pension Age Disability Payment in Scotland.
Additionally, several DWP benefits will see an increase, including the State Pension and Universal Credit. These increases are generally aligned with the consumer price index, which confirmed a 1.7% rise in inflation for 2024.
Key Changes in DWP Benefits
1. State Pension Increase
The State Pension will rise based on whichever is higher among the following criteria:
- Inflation rate
- Average earnings growth between May and July
- 2.5% increase (the triple lock promise)
In 2024, the State Pension will rise by 4.1%, in line with average earnings growth. This increase is set to benefit both new and existing pensioners.
2. Other DWP Benefits to Increase
- Universal Credit, Child Benefits, and Disability Living Allowance are among the benefits that will see an increase next month.
- The annual increase is tied to the inflation rate from September of the prior year, which in 2024 is confirmed at 1.7%.
Detailed Breakdown of Upcoming Benefit Increases
Universal Credit Payment Increases
The Universal Credit standard allowance, which is the basic amount received before any deductions, will rise as follows:
| Claimant Type | Current Amount | New Amount |
|---|---|---|
| Single under 25 | £311.68/month | £316.98/month |
| Single 25 or over | £393.45/month | £400.14/month |
| Joint claimants (both under 25) | £489.23/month | £497.55/month |
| Joint claimants (one or both 25 or over) | £617.60/month | £628.10/month |
Additional Payments for Universal Credit
- Child Element:
- First child (born before April 6, 2017): £333.33 to £339
- First child (born on or after April 6, 2017) or subsequent children: £287.92 to £292.81
- Disabled Child Element:
- Lower rate: £156.11 to £158.76
- Higher rate: £487.58 to £495.87
- Carer Element: £198.31 to £201.68
Work Allowance Increase
The work allowance for individuals receiving Universal Credit will also rise:
- Higher work allowance (no housing amount): £673 to £684
- Lower work allowance (with housing amount): £404 to £411
Childcare Cost Element Increase
The maximum for childcare costs will increase:
- For one child: £1,014.63 to £1,031.88
- For two or more children: £1,739.37 to £1,768.94
Carer’s Allowance Increase
Carer’s Allowance will be raised in March to support individuals who care for someone for 35 hours or more each week. The allowance will increase from £81.90 a week to £83.30 a week.
Pension Credit Top-Up Rates
Pension Credit helps top up the income of those over the State Pension age, with various additional elements available based on specific circumstances. These include care duties, disability, or being a carer.
| Category | Current Amount | New Amount |
|---|---|---|
| Single (minimum guarantee) | £218.15/week | £227.10/week |
| Couple (minimum guarantee) | £332.95/week | £346.60/week |
State Pension Rate Increases
- Full new state pension: £221.20/week to £230.25/week
- Full old basic state pension: £169.50/week to £176.45/week
These rates apply to individuals based on their birth date, with new state pension rates applying to men born after April 6, 1951 and women born after April 6, 1953.
Disability Living Allowance (DLA) Increases
For individuals receiving Disability Living Allowance, the care component and mobility component will both see an increase:
| Care Component | Current Rate | New Rate |
|---|---|---|
| Highest rate | £108.55/week | £110.40/week |
| Middle rate | £72.65/week | £73.90/week |
| Lowest rate | £28.70/week | £29.20/week |
| Mobility Component | Current Rate | New Rate |
|---|---|---|
| Higher rate | £75.75/week | £77.05/week |
| Lower rate | £28.70/week | £29.20/week |
As of April 2024, significant changes to DWP benefits will provide substantial financial relief for many claimants.
The rise in Universal Credit, Carer’s Allowance, and other benefits, alongside the introduction of the Pension Age Disability Payment in Scotland, reflects a broader effort to adjust benefits in line with inflation and the cost of living.
With a 1.7% increase across many benefits and a more significant 4.1% rise for the State Pension, these changes are set to provide essential support to millions across the UK.