The Department for Work and Pensions (DWP) recently announced a 6.7% increase in benefits for the next financial year, starting from April 8, 2024. This rise, based on the Consumer Price Index (CPI) from September 2024, is part of the UK Government’s effort to adjust benefits and pensions in line with inflation. Additionally, the basic and new state pensions will increase by 8.5%. This move is set to provide much-needed financial relief to millions of households.
Key Benefit Increases
Several essential benefits are set to rise by 6.7% in 2024. Below are the details of some of the most significant increases:
Universal Credit
Universal Credit will see significant increases across various categories:
- Single under 25: From £292.11 to £311.68
- Single over 25: From £368.74 to £393.45
- Couples under 25: From £458.51 to £489.23
- Couples over 25: From £578.82 to £617.60
This increase also applies to child amounts, carers’ allowances, and work allowances, helping families and individuals facing financial difficulties.
| Universal Credit Rates | 2023/2024 | 2024/2025 |
|---|---|---|
| Single (Under 25) | £292.11 | £311.68 |
| Single (25+) | £368.74 | £393.45 |
| Couples (Under 25) | £458.51 | £489.23 |
| Couples (25+) | £578.82 | £617.60 |
Attendance Allowance
This benefit for people with disabilities or illnesses will also increase:
- Higher rate: From £101.75 to £108.55
- Lower rate: From £68.10 to £72.65
DLA
Both the care and mobility components of the Disability Living Allowance will rise:
- Care component:
- Highest rate: £108.55
- Middle rate: £72.65
- Lowest rate: £28.70
- Mobility component:
- Higher rate: £75.75
- Lower rate: £28.70
PIP
Personal Independence Payment will also see increases:
- Daily living component:
- Enhanced: From £101.75 to £108.55
- Standard: From £68.10 to £72.65
- Mobility component:
- Enhanced: From £71 to £75.75
- Standard: From £26.90 to £28.70
Benefit
This benefit compensates those injured at work and will see increases based on the level of disablement:
- 100% disablement: From £207.60 to £221.50
- 20% disablement: From £41.52 to £44.30
| Disablement Level | 2023/2024 | 2024/2025 |
|---|---|---|
| 100% | £207.60 | £221.50 |
| 20% | £41.52 | £44.30 |
Statutory Sick Pay
Employees eligible for statutory sick pay will also benefit from the increase:
- Standard rate: From £109.40 to £116.75
Statutory Maternity
Parental benefits are also set to rise:
- Statutory Maternity Pay: From £172.48 to £184.03
- Statutory Paternity Pay: From £172.48 to £184.03
Severe Disablement Allowance
For those unable to work due to long-term illness or disability, the Severe Disablement Allowance will increase:
- Basic rate: From £92.20 to £98.40
- Age-related additions: Increase from £7.65 to £8.15 for both lower and middle rates.
Additional State Pension
The additional state pension will rise:
- Maximum rate: From £204.68 to £218.39
Statutory Adoption Pay
Statutory adoption pay will also be adjusted:
- Standard rate: From £172.48 to £184.03
Behind the Increase
The DWP’s decision to raise benefits by 6.7% stems from the September 2024 CPI inflation figure. The UK Government has long used this measure to adjust state benefits to ensure they keep pace with rising living costs. In addition, average weekly earnings between May and July 2024 grew by 8.5%, influencing the pension increase. The rise is part of the government’s triple-lock policy, which ensures pensions rise by either CPI inflation, wage growth, or 2.5%—whichever is highest.
What Does This Mean?
If you receive any of the benefits listed above, these changes mean a slight but potentially impactful increase in your monthly income starting from April 2024. For millions of families, individuals with disabilities, and pensioners, this rise will provide some relief against the backdrop of inflation and cost-of-living pressures.
Read Also- 2025 COLA Announced – Why Many Retirees Are Unhappy with the Increase
If you’re unsure how these increases might impact your situation, you can check the UK Government’s official website for detailed information on the new benefit rates for 2024 to 2025. It’s essential to stay updated and ensure you’re receiving the correct amount.
FAQs
When will the benefits rise?
The 6.7% increase will take effect on April 8, 2024.
How much will Universal Credit rise by?
Universal Credit will rise by 6.7%, with a single claimant under 25 now receiving £311.68.
Will pensions also rise?
Yes, pensions will rise by 8.5%, with the state pension increasing as part of the triple-lock policy.
Are all benefits rising by 6.7%?
Not all benefits, but many linked to inflation will rise by 6.7%, including Universal Credit, Attendance Allowance, and more.
Where can I check my benefit rates?
You can visit the UK Government’s website for the full list of benefits and pensions affected.
