DWP handing out £5,740 payments which are 'tax free' within weeks

DWP handing out £5,740 payments which are 'tax free' within weeks
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The Department for Work and Pensions is set to bring in a big change for people who claim two of the most popular disability benefits. The DWP says two key benefits will rise up to £1,362 each month from April thanks to an uprating from the new Labour Party government.

Both Attendance Allowance and the Basic State Pension is set to rise in April this year. Attendance Allowance is being hiked and the non-means tested weekly benefit will rise to £73.90 or £110.40 depending on your condition.

As the benefit is usually paid every four weeks, this amounts to either £290.60 (rising to £295.60) or £434.20 (rising to £441.60) every pay period. It means over a year-long period this means pensioners can get up to £5,740 to their 2025/26 income.

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Those on the full basic State Pension will see weekly payments rise by £6.95 per week from £169.50 to £176.45, or £705.80 every four-week payment period. Annual payments will rise by £361.40 from £8,814 to £9,175.40 over the 2025/26 financial year.

If you're admitted to hospital, your Attendance Allowance will stop after you've been in hospital for 28 days (four weeks). You'll be paid again from the day that you leave hospital. When working out how many days you've been in hospital, don't count the day you go in or the day you come out.

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If you have a long-term health condition that means you need help or supervision to do day-to-day activities, but you also care for someone else for at least 35 hours a week, and you have an income under £151 a week, you may be able to claim both Attendance Allowance and Carer's Allowance.

You won't be taxed on any money you get from Attendance Allowance, either. If you claim Attendance Allowance you'll be exempt from the benefit cap, so claiming won't reduce any of your other benefit entitlements.