DWP Announces 6.7% Increase in Benefits – List of Benefits Rising by 6.7% Next Year in the UK

The Department of Work and Pensions (DWP) in the UK has officially announced a significant 6.7% increase in various benefits for the upcoming year. This change, effective from April 8, 2024, reflects adjustments based on the Consumer Price Index (CPI) as of September 2024. Additionally, state pensions will see an even larger rise of 8.5%, ensuring that those on fixed incomes keep pace with the rising cost of living.

Benefit Increases

The 6.7% increase in benefits is part of the DWP’s annual review process, which adjusts payments in line with inflation to help recipients manage their finances as living costs rise. This adjustment impacts a wide range of benefits, including Universal Credit, Attendance Allowance, Disability Living Allowance, and Statutory Sick Pay, among others.

Detailed Breakdown

Universal Credit, a crucial benefit for many, will see increases across all standard allowances:

• Single (Under 25 years): £292.11 → £311.68
• Single (25 years or older): £368.74 → £393.45
• Couples (Both under 25): £458.51 → £489.23
• Couples (One or both 25 years or older): £578.82 → £617.60

Other elements of Universal Credit, such as Child Amounts, Carers Amounts, and Work Allowances, will also see similar increases.

Attendance Allowance

For those receiving Attendance Allowance, the new rates will be:

• Higher Rate: £101.75 → £108.55
• Lower Rate: £68.10 → £72.65

Disability Living Allowance

The Disability Living Allowance (DLA) will be adjusted as follows:

• Care Component:
  • Lower Rate: £26.90 → £28.70
  • Middle Rate: £68.10 → £72.65
  • Higher Rate: £101.75 → £108.55
• Mobility Component:
  • Lower Rate: £26.90 → £28.70
  • Higher Rate: £71 → £75.75

Personal Independence Payment

The Personal Independence Payment (PIP) will see the following increases:

• Daily Living Component:
  • Enhanced: £101.75 → £108.55
  • Standard: £68.10 → £72.65
• Mobility Component:
  • Enhanced: £71 → £75.75
  • Standard: £26.90 → £28.70

Industrial Injuries Disablement Benefit

For those receiving the Industrial Injuries Disablement Benefit, the increase is as follows:

• 100% Disablement: £207.60 → £221.50 per week
• 20% Disablement: £41.52 → £44.30 per week

Statutory Benefits

Various statutory benefits will also rise:

• Statutory Paternity Pay: £172.48 → £184.03
• Statutory Sick Pay: £109.40 → £116.75
• Statutory Maternity Pay: £172.48 → £184.03
• Statutory Adoption Pay: £172.48 → £184.03

Additional State Pension

The Additional State Pension will increase, providing more support to pensioners:

• Maximum Additional State Pension: £204.68 → £218.39

Incapacity Benefit

Changes to Incapacity Benefit include:

• Long-Term Incapacity: £130.20 → £138.90
• Short-Term Incapacity (Under State Pension Age): £116.20 → £124.00 (Higher Rate)
• Short-Term Incapacity (Above State Pension Age): £130.20 → £138.90 (Higher Rate)

Severe Disablement Allowance

The Severe Disablement Allowance will increase as follows:

• Basic Rate: £92.20 → £98.40
• Age-Related Addition:
  • Lower Rate: £7.65 → £8.15
  • Middle Rate: £7.65 → £8.15
  • Higher Rate: £13.80 → £14.70

What This Means for You

These increases are part of the DWP’s effort to ensure that benefits keep pace with inflation, helping individuals and families manage their day-to-day expenses. The adjustments will come into effect on April 8, 2024, so beneficiaries should expect to see the increased payments reflected from that date onward.

For a full list of all benefits and pensions affected by the increase, you can visit the UK Government’s official website. Staying informed about these changes is crucial to managing your finances effectively as these adjustments take place.

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