It’s been a really hard year for everyone whether you’ve been on benefits or not thanks to spiralling bills, inflation and the cost of living crisis that’s still making our lives that bit harder financially.
But for people on two types of benefits, there is help at hand because beginning from Monday, a change from the government means that two payments will be increased in cash terms for the next 12 months.
In a move announced by the Secretary of State for Work and Pensions, Universal Credit and the State Pension will both be increased in line with inflation, starting from April.
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Every year, both of these benefits is reviewed by the DWP in order to make sure the money is still enough to support people once inflation has reduced spending power.
Universal Credit, which is also claimed as a top up benefit for people who do work but are on low incomes, is going to be increased by 6.7%, which will give an average boost of £39 per month, which the government says will make it a £470 boost on average for the next financial year.
The State Pension is also being increased, by an average of £310 from April thanks to an inflation linked uplift as well.
That makes a total of £780 more money dropping into people’s bank accounts this year. With inflation currently sitting at 3.4%, it’s a timely boost.
Of course, if your benefit is usually paid on the 1st of the month you may even have had your most recent payment early due to the Bank Holiday weekend, but the uplifted amounts apply to benefits due to be paid from April onwards.
The Secretary of State for Work and Pensions is required to review the level of benefits each year. Inflation-linked benefits and tax credits will rise by a significant 6.7% from April 2024, in line with the Consumer Prices Index (CPI) rate of inflation level from September 2023.
The DWP has announced that an uplift in State Pensions to counteract inflation will add about £310 a year back into people’s pockets.
From April, the Full Basic State Pension will also increase in line with the ‘triple lock’, from £156.20 per week to £169.50, an increase of £13.30.
The Full New State Pension rises by £17.35 from £203.85 to £221.20.
Universal Credit is also being uplifted for the same reason. Speaking about the benefit, the government announced: “In 2024/25, around 5.5 million Universal Credit families are forecast to benefit from uprating with an average annual gain for a family on Universal Credit estimated to be £470 (equivalent to an increase of around £39 per month), however gains will vary depending on the elements received by different family types.”
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