Millions of benefits claimants will soon know how much their payments will go up by – and soaring inflation means increases could be pretty big.
The Department for Work and Pensions (DWP) will soon decide how much to increase many benefits by from the new tax year in April 2023.
We should know their plans by November 2022.
But normally benefits including Universal Credit, Personal Independence Payment, Housing Benefit and Employment and Support Allowance (ESA) go up based on inflation.
The DWP normally looks at inflation in the year to September then puts up benefits by that figure from the following April.
Higher food and petrol prices have pushed inflation up to a 40-year high of 9.4% in June, the latest figures show.
The Bank of England thinks inflation could go even higher this year, to around 11%.
But around 31million people are on benefits that tend to go up with inflation, the Liverpool Echo reports.
So while high inflation means we are paying more now for things like energy bills, food and petrol, in the long run it is better news for claimants.
As it stands, the current DWP payment rates for 2022-2023 are below, with the previous amount for 2021-2022 in brackets to show how much they increased by.
Attendance Allowance
Higher rate: £92.40 (from £89.60)
Lower rate: £61.85 (from £60.00)
Bereavement Benefit
For deaths between April 9, 2001 and April 5, 2017
Widowed Parent’s Allowance: £126.35 (from £122.55)
Bereavement Support Payment
For deaths occurring on or after April 6, 2017
Standard rate (lump sum) £2,500 (no change)
Standard rate monthly payments £100 (no change)
Higher rate lump sum stays at £3,500 (no change)
Higher rate monthly payments £350 (no change)
Carer’s Allowance
£69.70 (from £67.60)
Disability Living Allowance – Care Component
Highest: £92.40 (from £89.60)
Middle: £61.85 (from £60.00)
Lowest: £24.45 (from £23.70)
Disability Living Allowance – Mobility Component
Higher: £64.50 (from £62.55)
Lower: £24.45 (from £23.70)
Employment and Support Allowance (ESA)
Under 25: £61.05 (from £59.20)
25 or over: £77 (from £74.70)
Housing Benefit
Under 25: £61.05 (from £59.20)
25 or over: £77.00 (from £74.70)
Entitled to main phase ESA: £77.00 (from £74.70)
Incapacity Benefit
Long-term: £118.25 (from £114.70)
Income Support
Under 25: £61.05 (from £59.20)
25 or over: £77.00 from (£74.70)
Industrial Death Benefit
Widow’s pension higher rate: £141.85 (from £137.60)
Widow’s pension lower rate: £42.56 (from £41.28)
Widower’s pension: £141.85 (from £137.60)
Jobseeker’s Allowance – Contribution-based JSA
Under 25: £61.05 (from £59.20)
25 or over: £77.00 (from £74.70)
Jobseeker’s Allowance – Income-based JSA
Under 25: £61.05 (from £59.20)
25 or over: £77.00 (from £74.70)
Maternity/Paternity/Shared Parental Allowance/Statutory Parental Bereavement Pay
Standard rate: £156.66 (from £151.97)
Pension Credit
Single: £182.60 (from £177.10)
Couple: £278.70 (from £270.30)
Personal Independence Payment (PIP) – Daily Living Component
Enhanced: £92.40 (from £89.60)
Standard: £61.85 (from £60.00)
Personal Independence Payment (PIP) – Mobility Component
Enhanced: £64.50 (from £62.55)
Standard: £24.45 (from £23.70)
New State Pension
£185.15 (from £179.60)
Old State Pension
Category A or B Basic: £141.85 (from £137.60)
Category B (lower) basic pension – spouse or civil partner’s insurance: £85 (from £82.45)
Category C or D – non-contributory: £85 (from £82.45)
Widow’s Pension
Standard rate: £126.35 (from £122.55)
Universal Credit (monthly rates shown)
Standard allowance – single
Single under 25: £265.31 (from £257.33)
Single 25 or over: £334.91 (from £324.84)
Standard allowance – couple
Joint claimants both under 25: £416.45 (from £403.93)
Joint claimants, one or both 25 or over: £525.72 (from £509.91)
Standard allowance – child amounts
First child (born prior to 6 April 2017): £290.00 (from £282.60)
First child (born on or after 6 April 2017) or second child and subsequent child (where an exception or transitional provision applies): £244.58 (from £237.08)
Standard allowance – disabled child additions
Lower rate: £132.89 (from £128.89)
Higher rate: £414.88 (from 402.41)
Limited capability for work
Limited Capability for Work: £132.89 (from 128.89)
Limited Capability for Work and Work-Related Activity: £354.28 (from £343.63)
Carer amount
£168.81 (from £163.73)