As the new financial year begins, payment rates will change, and millions of people who claim benefits will get more money from the state in just a few days. Every year at the start of April, a number of benefits go up, along with bills and taxes. For example, the state pension goes up according to the triple lock, and the Universal Credit goes up according to the standard universal credit allowance. The triple lock, which chooses the highest of wage growth, inflation, or 2.5%, will raise the state pension by about £574.60 a year starting next month.
As a result, UK pensioners will see their weekly payments go up from £230.25 to £241.30, bringing the total annual state pension to £12,547.60. On April 1, Universal Credit recipients will also get a 6.2% raise. The standard allowance will go from £316.98 to £338.58 per month for single people under 25 and from £497.55 to £528.34 per month for couples under 25.
Department of Work and Pensions
At the start of the new fiscal year, the DWP will raise benefit rates (Image: Getty) Meanwhile, rates for people on UC with kids will go up from £339 per month to £351.88 for the first child born before April 6, 2017.
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Rates will go up from £292.81 per month to £303.94 for people who have children born on or after April 6, 2017.
Next month, most benefits will go up by 3.8%. This is because UK inflation stayed at that level in September, which was lower than the 4% that was expected.
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The triple lock will raise the state pension by 4.8%, while Universal Credit will see a “rebalancing” rise, which will raise standard allowances by about 6.2%.
The Department for Work and Pensions (DWP) must legally raise these benefits every April to keep up with inflation. Other benefits, on the other hand, need to be approved by Parliament.
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Changes to the main rate that will take effect next month:
Pension from the state
- New state pension: going up from £230.25 to £241.30 a week
- The basic state pension is going up from £176.45 to £184.90 a week.
The Daily Living Component of the Personal Independence Payment (PIP)
- The enhanced rate goes up from £110.40 to £114.60.
- Standard rate: going up from £73.90 to £76.70
The Mobility Component of Personal Independent Payment (PIP)
- Increased rate: going from £77.05 to £80
- Standard rate: going up from £29.20 to £30.30
Credit for Everyone
- Single under 25 rate: going up from £316.98 to £338.58
- Single over 25 rate: going up from £400.14 to £424.900
- Joint claimants both under 25 rate: Going up from £497.55 to £528.34
- Joint claimants, one or both over 25: The rate goes up from £628.10 to £666.97.
- First child, born before April 6, 2017, rate: Going up from £339 to £351.88
- The rate for the first child, who was born on or after April 6, 2017, and the second child is going up from £292.81 to £303.94.
