Exact date millions on Universal Credit and benefits will get a pay rise – how much better off will you be?

MILLIONS claiming Universal Credit and other benefits are set to get a payrise from April.

Chancellor Rachel Reeves announced the hike in her Autumn budget last October.

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Benefits rise each year in April in line with the rate of CPI inflation the previous September, known as uprating.

September’s rate of inflation was announced late this year as 1.7%, according to the Office for National Statistics (ONS).

The benefits will increase on the first Monday after the new tax year, which is April 7.

Of course, the amount your benefits will rise by depends on which one you receive and your financial circumstances.

Although the new rates come in from April, you might have to wait a little longer to get the extra cash.

HOW MUCH MORE WILL I GET?

Previous analysis by the Joseph Rowntree Foundation, which works on tackling poverty, said the 1.7% increase means the standard allowance basic rate of Universal Credit will rise by around £1.50 a week from its current level of £90.55.

Meanwhile, the basic rate for couples will go up by around £2.50 a week from the current level of £145.13 a week.

The group said the changes will mean a typical low-income family with two children would see its annual UC award rise by £253 next April.

The following benefits are also legally required to increase each April in line with the previous September’s rate of inflation: 

• Personal independence payment (PIP)
• Disability living allowance
• Attendance allowance
• Incapacity benefit
• Severe disablement allowance
• Industrial injuries benefit
• Carer’s allowance
• Additional state pension
• Guardian’s allowance

This means that those who currently receive the lower rate of Attendance Allowance will see their weekly payment rise by £1.23 to £73.85.

Those on the higher rate of £108.55 will see their weekly allowance rise by £1.85.

In comparison, those on Carers Allowance will see their weekly payment rise by £1.39 to £83.29.

Of course, the exact increase in your payments will depend on your individual circumstances.

We have broken down how much your benefits will increase by if you claim the following.

Personal independence payments (PIP)

Rates for personal independence payments (PIP) will rise by 1.7% in April.

PIP covers the extra cost of living for those suffering from illnesses or disabilities.

Payments for the daily living component will go up from £108.55 to £110.40 for enhanced and from £72.65 to £73.89 for standard.

The mobility component will rise from £75.75 to £77.04 for enhanced and from £28.70 to £29.19 for standard.

Employment support allowance (ESA)

Employment Support Allowance (ESA) tops up workers’ pay if they’re on a low income.

Rates will change in April for those who are single and:

• Under 25-years-old, from £71.70 to £72.92
• Age 25 and older, from £90.50 to £92.04
• Lone parent under 18, from £71.70 to £72.92
• Lone parent 18 or over, from £90.50 to £92.04

Those in a couple could will also see their rates rise:

• Both under 18-years-old, from £71.70 to £72.92
• Both under 18 years old with a child, from £108.30 to £110.14
• Both over 18, from £142.25 to £144.67
• Under 25, partner under 18, from £71.70 to £72.92
• Claimant 25 or over, partner under 18, from £90.50 to £92.04

There are also further rates for those with disabilities or caring responsibilities.

Check out the Government’s website for more details.

Attendance Allowance

Attendance Allowance helps with extra costs if you have a disability severe enough that you need someone to help look after you.

It’s paid at two different rates and how much you get depends on the level of care you need.

The higher rate will rise from £108.55 to £110.40 in April, while the lower rate will go up from £72.65 to £73.89.

Pension credit

Guaranteed pension credit payments could go up from £218.15 a week to £221.86, or £332.95 to £338.61 for couples.

You may also get the “Savings Credit” part of pension credit if both of the following apply:

• You reached state pension age before April 6, 2016
• You saved some money for retirement, for example, a personal or workplace pension

This part of pension credit will rise from £17.01 a week to £17.30 or for couples, from £19.04 to £19.36.