DWP making big change to eight benefits before 'biggest crackdown in generation'
Eight benefits are set to be changed by thr Department for Work and Pensions in a major shake up. The DWP is set to roll out big changes to benefits in line with inflation, as it hikes payments for those who claim in a welcome boost.
But the benefits boost comes with a sting in the tail - as the DWP has warned it will launch the biggest crackdown in a GENERATION under the Labour Party government. Around 19.7 million households, containing 39.5 million people, are estimated to be in receipt of at least one DWP or HMRC benefit that will be uprated from April 2025.
Welfare payments usually increase each year by the rate of inflation from the previous September. The Consumer Prices Index (CPI) rate of inflation in September 2024 was announced to be 1.7%, which is therefore the rate that inflation-linked benefits and tax credits will rise by this year.
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Universal Credit
The standard allowance, which is the basic amount you receive before any additional payments or deductions are accounted for, will rise by:
Single under 25: £311.68 a month to £316.98 a month
Single 25 or over: £393.45 a month to £400.14 a month
Joint claimants both under 25: £489.23 a month to £497.55 a month
Joint claimants, one or both 25 or over: £617.60 a month to £628.10 a month
Some receive additional payments for factors such as dependent children or long-term illness.
For those with children:
First child born before April 6, 2017: £333.33 a month to £339 a month
First child born on or after April 6, 2017 or second child and subsequent child: £287.92 a month to £292.81 a month
Disabled child element lower rate: £156.11 a month to £158.76 a month
Disabled child higher rate: £487.58 a month to £495.87 a month
For those with limited capability for work:
Limited capability for work: £156.11 a month to £158.76 a month
Limited capability for work or work-related activity: £416.19 a month to £423.27 a month
For carers:
£198.31 a month to £201.68 a month
Attendance Allowance
People eligible for this are those over the state pension age who need help or supervision with personal care because of illness or disability.
Lower rate:
£72.65 a week to £73.90 a week
Higher rate:
£ 108.55 a week £110.40 a week
Carer's Allowance
This benefit is given to those who are looking after someone for 35 hours or more a week. You don't have to live with, or be related to them to be eligible.
£81.90 a week to £83.30 a week
Child Benefit
This monthly payment is for parents or anyone looking after a child.
First or eldest child: £25.60 a week to £26.05 a week
Any additional child: £16.95 a week to £17.25 a week
Disability Living Allowance
Disability Living Allowance (DLA) is being replaced by Personal Independence Payment (PIP) for those with a disability. You can only apply for DLA if you're under 16 and you live in England or Wales. Those who live in Scotland can apply for Child Disability Payment.
DLA care component rates will increase as follows:
The highest rate: £108.55 a week to £110.40 a week
The middle rate from £72.65 a week to £73.90 a week
The lowest rate from £28.70 a week to £29.20 a week
DLA mobility component rates will increase as follows:
The higher rate: £75.75 a week to £77.05 a week
The lower rate: £28.70 a week to £29.20 a week
Pension Credit
If you're above state pension age, this credit tops up your income. It also allows the recipient to access other things such as council tax discounts and free TV licences for over-75s.
Standard minimum guarantee:
Single: £218.15 a week to £227.10 a week
Couple: £332.95 a week to £346.60 a week
There are additional elements available if you're a carer, you're disabled, you're looking after children, or if you have savings and reached state pension age before April 2016.
Personal Independence Payment (PIP)
This is for adults of working age who have an illness, disability or mental health condition. PIP has two components - a daily living rate and a mobility rate. You can be entitled to both or just one of these.
Daily living:
Lower rate: £72.65 a week to £73.90 a week
Higher rate: £108.55 a week to £110.40 a week
Mobility:
Lower rate: £28.70 a week to £29.20 a week
Higher rate: £75.75 a week to £77.05 a week
State Pension
If you're a man born on or after April 6, 1951, or a woman born on or after April 6, 1953 you can claim the new state pension. The basic state pension is for men born before April 6, 1951, or a woman born before April 6, 1953.
Full new state pension: £221.20 a week to £230.25 a week
Full old basic state pension: £169.50 a week to £176.45 a week.