Exact amount DWP payments for parents will rise next year including child benefit and tax credits

PARENTS who get benefits should see payments rise by 1.7% from next April, helping them to manage the increasing cost of living.

Chancellor Rachel Reeves, confirmed in the Budget that all working age benefits would be going up in line with the Consumer Prices Index (CPI) inflation rate.

That means that everything from Universal Credit to Child Benefit will increase by this amount.

For parents specifically, the child specific elements of various benefits will also increase by 1.7%.

However, working-age people may feel hard done by compared to pensioners, because the State Pension is protected by something called the triple-lock.

This means that the State Pension will rise by 4.1% compared to the lower than 2% rise that everyone else will receive.

We’ve crunched the numbers on the benefits aimed specifically at parents, to see how much they’ll increase by.

Here’s what you need to know.

Universal Credit

Universal Credit is the standard benefit for working-age people in the UK, replacing several legacy benefits.

The government has slowly been moving people across to this benefit since its introduction in 2013, with a view to stopping benefits such as child tax credit, housing benefit, income support, jobseeker’s allowance, employment and support allowance, and working tax credits.

Almost all new benefit claimants are enrolled under Universal Credit, and the aim is for everyone on legacy benefits to be moved across by the end of next year.

Like most benefits, Universal Credit will increase by 1.7%, which the government says will see around 5.7 million families gain £150 on average over the next tax year.

Exactly how much you’ll get depends on how your family is made up and which elements you receive, but for joint claimants where one or both are 25 or over, the standard allowance will rise from £617.60 to £628.099.

Parents will also see an uplift in the monthly child element:

• For those with a first child born before April 6, 2017, the extra amount will go up from £333.33 to £338.99
• For those with a child born on or after April 6, 2017, or a second child, the extra amount will go up from £287.92 to £292.81
• For those with a disabled child, the lower rate additional payment will rise from £156.11 to £158.76 and the higher rate from £487.58 to £495.86

Child Benefit

Child Benefit is designed to help with the cost of raising a family in the UK.

It’s paid every four weeks and currently worth £1,331.20 for the eldest eligible child and £881.40 for all subsequent eligible children.

From April 6, 2025 this will increase to £26.04 for the eldest and £17.24 for each extra child.

You can claim child benefit for any child aged under 16.

If your child stays in approved education (such as doing A-levels or Scottish Highers), you can keep claiming until your child is 20.

If they leave approved education, for instance to go to university, you stop getting the money.

While anyone can claim the benefit, if you or your partner earns £60,000 or more, you start having to pay some of the money back.

Once either of you earns over £80,000 (individually) you have to pay all of it back.

Despite that, it’s often worth claiming because it also gives you national insurance credits if you have a child under 12.

These are really important if one parent is either a stay-at-home parent, working part time, or on a low income, because it helps build up State Pension entitlement.

Child Tax Credit

Child tax credits are due to stop from April next year, so the amount you get won’t increase.

However, you may be able to claim Universal Credit, and get the child elements outlined above, which are rising by 1.7%.

Housing Benefit

Housing benefit is stopping for most people by the end of 2024, however the government says that it will continue to pay it for people who live in supported or temporary accommodation.

There are different rules for people who are above state pension age, who may continue to get the benefit.

If you get Housing Benefit, you should receive something called a managed migration notice that explains about your switch to Universal Credit.

It’s really important to respond to this, because otherwise your benefits might stop and you’ll miss out on important transitional protections.

Carer's Allowance

You can claim Carer's Allowance if you care for someone at least 35 hours a week and they get certain benefits.

These include:

• Personal Independence Payment - daily living component
• Disability Living Allowance - the middle or highest care rate
• Attendance Allowance
• Pension Age Disability Payment
• Constant Attendance Allowance at or above the normal maximum rate with an Industrial Injuries Disablement Benefit
• Constant Attendance Allowance at the basic (full day) rate with a War Disablement Pension
• Armed Forces Independence Payment
• Child Disability Payment - the middle or highest care rate
• Adult Disability Payment - daily living component at the standard or enhanced rate

The rate will go up from £81.90 to £83.29 a week.

The threshold at which you become ineligible for carer's allowance - known as the "cliff edge" will also rise from April.

Maternity, paternity, adoption and shared parental pay

If you’re pregnant or hoping to be next year, then you might be thinking about maternity, paternity, or adoption leave.

While many employers are more generous, for a lot of people this means looking at the statutory rates, which are typically 90% of average weekly earnings or £184.03 – whichever is lower.

All of these benefits will also increase by 1.7% from the beginning of next April from £184.03 a week to £187.16.

Maternity Allowance

New mums who don't qualify for standard maternity pay could still get a payment adding up to thousands of pounds from Maternity Allowance.

This will also rise from £184.03 a week to £187.16 from April 2024.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Facebook group to share your tips and stories