Five DWP changes in May 2024 you need to know about

In May 2024, there are five key cost-of-living changes from the Department for Work and Pensions (DWP) that you need to be aware of. These alterations could potentially impact millions across Wales and the rest of the UK.

This follows significant changes in April, which saw a 6.7% increase in state benefits such as universal credit, PIP, ESA, DLA and income support. Pensioners also experienced an uplift with the state pension rising by 8.5%, taking the full new state pension to £221.20 per week.

Further changes are due in May that could significantly affect your finances. These will primarily impact those claiming certain benefits like universal credit, with changes to work requirements and modifications to payment dates due to two bank holidays.

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Here's everything you need to know about the financial changes coming in May.

Although the DWP introduced new benefit rates from April, many won't see these higher rates reflected in their payments until next month due to the way benefits are paid, either monthly or fortnightly, reports Wales Online.

Bank holiday payment changes May 6 & 27

The Department for Work and Pensions (DWP) has revealed changes set for May affecting individuals on certain benefits. Due to the bank holidays on May 6 and May 27, those scheduled to receive universal credit or other benefits on these dates will generally receive their payments earlier. Sign up for the North Wales Live newsletter sent twice daily to your inbox

If your benefits are due on Monday, May 6, you'll receive your payment on Friday, May 3. Similarly, if your benefits are due on Monday, May 27, you'll be paid on Friday, May 24.

These bank holiday alterations will apply to the following benefits:.

Interest rates decision - May 9

The Bank of England convenes several times a year to determine the base interest rate, which is utilised to regulate inflation and can impact things like mortgage repayments for millions of households. Over the past two years, the bank has been raising the rate in an effort to combat inflation, which reached a peak of 11.1% in October 2022 but dropped to 3.2% in March.

In March, the base rate was maintained at 5.25%, and it's uncertain what the new rate will be in May. Experts had previously anticipated a rate cut in May or June, but this might not occur until August or September.

Universal credit changes - May 13

Major changes are on the horizon next month that will impact thousands of Universal Credit claimants who work. The administrative earnings threshold (AET) determines the minimum wage levels for individuals to receive full benefits without needing to seek additional employment.

Previously, claimants needed to work approximately nine hours a week to receive full benefits. However, from 13 May, the minimum wage levels for benefit claimants with work requirements will increase to £892 per calendar month for individuals and £1,437 per calendar month for couples.

This equates to an individual working 18 hours per week at the national living wage or couples working a combined total of 29 hours per week at the same wage rate.

This change means that around 180,000 people will need to work more hours to receive full benefits, or they could face sanctions or have their payments stopped entirely. More information about this can be found here.

The State Pension Age (Compensation) Bill for WASPI women is set for its second reading on 17 May. This bill seeks to compensate women affected by changes to the state pension age.

In March, following a six-year investigation, the Parliamentary and Health Service Ombudsman (PHSO) stated that women born in the 1950s who were impacted by short notice changes to their state pension age should receive compensation.

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