HELPING HAND
Millions on benefits including Universal Credit to get up to £470 payment boost next year, Jeremy Hunt confirms
But the same households will also face tougher work assessments
MILLIONS of households on benefits, including Universal Credit, will get a payment boost worth up to £470 next year.
Jeremy Hunt has confirmed that benefit payments will increase in line with inflation in today's Autumn Statement.
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The payment boost will come into effect in April 2024 and the average family on Universal Credit will be around £470 a year better off.
Mr Hunt said: "Firstly, for those on the lowest incomes. I understand the concerns some have about the effect on work incentives of matching benefit increases to inflation.
"I know there has been some speculation that we would increase benefits next year by the lower October figure for inflation.
"But cost of living pressures remain at their most acute for the poorest families.
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"So instead, the government has decided to increase Universal Credit and other benefits from next April by 6.7% in line with September’s inflation figure, an average increase of £470 for 5.5m households next year.
"Vital support to those on the very lowest incomes from a compassionate Conservative government."
In his Autumn Statement Jeremy Hunt announced:
- The biggest ever price hike for tobacco products
- A major win for The Sun's Save Our Sups campaign with alcohol duty frozen
- A major benefit change for renters on Universal Credit
- A £10,000 energy bill discount for Brits living near pylons
- A £192 income boost for self-employed workers
- A £470 payment boost for millions on Universal Credit
- Millions will be stripped of benefits under harsh new rules
- Nurses will save £500 in a personal income tax cut
- No fuel duty hike in huge relief for drivers
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The Department for Work and Pensions (DWP) usually uses September's inflation figures to make the decision on uprating benefit and pension payments from the following April.
However, there were concerns that the government was planning to use a lower inflationary figure to uprate welfare payments.
The yearly inflation rate for September came in at 6.7%, compared to 4.6% for October.
But Jeremy Hunt has now committed to using September's inflation figure as usual.
Pensioners are also set to get a bumper pay boost as The Chancellor is expected to confirm that the triple lock will remain unchanged.
While a boost to benefits will be welcomed by millions of households, claimants are set to face tougher work assessments.
It is part of a major back-to-work drive with a record high 2.6million people long-term sick.
Sanctions will see the worst-offending claimants lose a chunk of their benefits.
How will Universal Credit payments increase?
There are more than five million people claiming Universal Credit.
The current standard allowance for single UC claimants under the age of 25 is £292.11 a month.
This will increase by 6.7% to £311.68 - an increase of £19.57.
The standard allowance for single claimants over the age of 25 is £368.74 a month.
This means payments will increase by £24.71 a month to £393.45.
If you live with your partner and are both under 25, your monthly payment will increase from £458.51 to £489.23 - a rise of £30.72.
If you live with your partner and either of you are 25 or over, you could see a rise of £38.78 from £578.82 to £617.60 a month.
Of course, how much extra you'll get a month depends on your current benefit level.
To calculate yours, simply multiply your monthly benefit amount by 1.067.
The following are legally required to have their payments rise with the previous September's rate of inflation each April:
- Personal independence payment (PIP)
- Disability living allowance
- Attendance allowance
- Incapacity benefit
- Severe disablement allowance
- Industrial injuries benefit
- Carer's allowance
- Additional state pension
- Guardian's allowance
But in the documents released alongside the Autumn Statement the Chancellor also confirmed that Blind Person’s Allowance (BPA) and Married Couple’s Allowance (MCA) will also go up.
These will also increase by the September CPI figure of 6.7%.
The BPA will be valued at £3,070 and the MCA will be valued at between £4,280 and £11,080.
How to get help now
If you're struggling with rising costs and bills now there is help available to you.
For example, you could be entitled to cost of living payments of up to £1,350.
This year and into 2024, the government is handing out cash to millions of people.
Individually, the payments are worth £900, £300 and £150.
Some people may be eligible for all three, meaning a total of £1,350.
The £900 Cost of Living payment has been split into three instalments worth £301, £300 and £299.
The second instalment of £300 has just been dished out, with the third to follow in Spring next year.
A separate £300 pensioner CoL payment will be dished out this winter.
Plus, the £150 is being applied from now until March 31 next year.
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And you can also get help from your local council as part of the Household Support Fund.
For example, eligible households can get up to £350 free if they live in Tandridge, in east Surrey.
You can also join our new Sun Money to share stories and tips and engage with the consumer team and other group members.
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