Universal Credit: How much your payments will go up by in 2023 | Personal Finance | Finance
Universal Credit claimants, as well as other DWP benefit claimants, will receive a rise in payments in line with the inflation by 10.1 percent next year. Mr Hunt explained that this will benefit families on the benefit by around £600 more each year.
Confirming that benefits and state pensions will rise in line with inflation, the Chancellor told the Commons: “I also commit to uprate such benefits by inflation with an increase of 10.1 percent, that is an expensive commitment costing £11billion.
“But it means 10 million working-age families will see a much-needed increase next year.
“On average, a family on Universal Credit will benefit next year by around £600. And to increase the number of households who can benefit from this decision I will also increase the benefit cap with inflation next year.”
When will Universal Credit go up?
Government figures show around 5.8 million people were receiving Universal Credit in October. This means millions of people are set to receive the cash boost next year.
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“10 million working-age families will see a much-needed increase next year,” the Chancellor said.
The rate rises will kick in from April 2023.
How much are Universal Credit rates rising?
Standard allowance rates for April 2023/2024, according to Manchester Live:
- single, aged 25 and over – £368.74 – an increase of £33.83
- single, aged 25 and over up with limited capability for work and work-related activity – £758.80 – an increase of £69.61
- single, aged 25 and over with one child – £638.32 – and increase of £58.83
- couple, at least one adult 25 and over and two children – £1,117.98 and increase of £103.10
Another change mentioned affects 600,000 Universal Claimants.
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Joanna Elson CBE, chief executive of the Money Advice Trust, said: “This Autumn Statement will provide relief for some of the households who are among the hardest hit by the cost of living and energy crisis – but serious challenges remain for millions across the country.
“The Chancellor is right to have listened to widespread calls to increase benefits with inflation – and additional targeted payments for the most vulnerable are also welcome.
“But rising daily costs, higher rents and mortgage payments will now be joined by significant hikes in council tax and energy bills in April – which will take an enormous toll on the nation’s personal finances.
“The Government needs to do more to protect households at the sharp end of this crisis.
“This included making sure that no one is pushed into hardship by unaffordable debt repayments, suspending the forced installation of energy pre-payment meters and increasing funding for Council Tax Support schemes for those unable to pay.”
For more information, people can visit the Government website.
