Budget 2024: Benefits to rise as new Universal Credit, PIP and pension sums announced
Rachel Reeves has confirmed that benefits and pensions are set to rise for recipients across the nation. Making the announcement while presenting Labour's first Budget in nearly a decade and a half, the Chancellor detailed the forthcoming changes.
There will be a 1.7% increase in benefits which aligns with the consumer price index (CPI) inflation rate recorded in September 2024. This adjustment ensures that come April 2025, individuals reliant on aid like Universal Credit will see a boost in their payments.
Furthermore, the Chancellor has reiterated the government's pledge to the distinguished 'triple lock' policy concerning state pensions, meaning a 4.1 percent ascent in state pension remittances will take place.
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Speaking on the expected impacts of the pension increases, the Chancellor pointed out the positive ramifications for over 12 million senior citizens starting from next year. Ms Reeves noted: "This commitment means that while working-age benefits will be uprated in line with CPI at 1.7%, the basic and new state pension will be uprated by 4.1% in 2025-26."
Ms Reeves further mentioned: "This means that over 12 million pensioners will gain up to £470 next year.", reports Wales Online.
She went on to say: "The pension credit standard minimum guarantee will also rise by 4.1% from around £11,400 per year to around £11,850 for a single pensioner."
A comprehensive breakdown of all the revised benefit and pension rates can be found below:
Universal Credit
Under 25s (single) from £311.68 to £316.98
Under 25s (joint claim) from £489.23 to £497.55
Over 25s (single) from £393.45 to £400.14
Over 25s (joint claim) from £617.60 to £628.099
Personal independence payment (PIP)
Daily living component
from £108.55 to £110.40 (enhanced)
from £72.65 to £73.89 (standard)
Mobility component
from £75.75 to £77.04 (enhanced)
from £28.70 to £29.19 (sandard)
Employment Support Allowance
Under 25s (single) from £71.70 to £72.92
Over 25s (single) from £90.50 to £92.04
Lone parent (under 18) from £71.70 to £72.92
Lone parent (18+) from £90.50 to £92.04
Attendance Allowance
Higher rate:
from £108.55 to £110.40
Lower rate
from £72.65 to £73.89
State pension
New state pension
full rate from £221.20 a week to £230.27
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