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Millions in Universal Credit and state pension will NOT get a pay rise in April

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MILLIONS of households on benefits are facing a payment delay over the way their benefits will be paid next month.

Benefits will increase by 6.7% from April, in line with the consumer price index (CPI) inflation level for September 2023.

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Great Britain pound currencyCredit: Getty

However, it’s important to note that even though the new rates go into effect on April 8, most won’t see their payments increase until May.

This is because most benefits are paid monthly or twice a month in arrears.

For example, if you typically receive your state pension payment on or before the 8th of each month, you will not receive a payment increase until after your May payment is due.

Millions on Universal Credit will also have to wait a little longer to receive the top-up because of the way the benefit is assessed.

This means that the date on which you receive the wage increase depends on when your last tax period was.

Universal Credit is paid monthly and is based on your circumstances on a monthly basis.

This is called your ‘assessment period’ and starts on the day you make your claim.

The new Universal Credit rates will only come into effect during the first assessment period, which starts on or after April 8.

Those whose assessment period began before April 8 will see benefits increase in May, but those whose assessment period began after this date will not see this until June.

Here’s a full list of the new benefit rates for 2024-2025 so you can see how much extra you could get.

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Universal credit

Standard fee (per month)

  • For singles and under 25s, the standard allowance will increase from £292.11 to £311.68
  • For single people and those aged 25 or over, the standard allowance will increase from £368.74 to £393.45
  • For joint claimants who are both under 25 years of age, the standard award will increase from £458.51 to £489.23
  • For joint claimants where one or both are aged 25 or over, the standard compensation increases from £578.82 to £617.6

Additional amounts for children

  • For those with a first child born before April 6, 2017, the additional amount will increase from £315 to £333.33
  • For those with a child born on or after April 6, 2017 or a second child and a subsequent child, the additional amount will increase from € 269.58 to £287.92
  • For people with a disabled child, the additional charge on the lower rate will increase from £146.31 to £156.11 and the higher rate of £456.89 to £487.58

Additional amounts for limited work capacity

  • For those deemed to have limited capacity to work, the additional amount will increase from £146.31 to £156.11
  • For those deemed to have limited employment opportunities or work-related activities, the additional amount will increase from £390.06 to £416.19

Additional amounts as an informal caregiver

Universal Credit claimants can get an extra amount if they care for a severely disabled person for at least 35 hours a week.

The amount you receive per month increases from € 185.86 to € 185.86 £198.31

The work allowance rates will also increase in April next year.

Increased work compensation

  • The higher work allowance (not housing amount) for someone claiming Universal Credit who has one or more dependent children or limited employment opportunities will increase from £631 to £673
  • The reduced work allowance for someone claiming Universal Credit who has one or more dependent children or limited employment options will rise from £379 to £404

AOW

The full rate of the new state pension will increase from £203.85 per week to £221.20.

For the basic part of the old state pension, the rate will increase from £156.20 to £169.50.

How much pension you receive depends on your entitlement.

Are you missing out on benefits?

You can use a benefit calculator to check whether you are not missing out on money you are entitled to

Charity The Turn2Us benefits calculator figuring out what you could get.

Upright free calculator determines whether you are eligible for various benefits, tax credits and Universal Credit.

MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto’s data.

You can use The Policy in Practice calculator to determine which benefits you can receive and how much money you have left every month after paying your housing costs.

Exactly what you are entitled to will not be clear until you make a claim, but calculators can indicate what you may be eligible for.

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