The Department of Work and Pensions (DWP) has recently announced a 6.7% increase in various benefits for the upcoming year, marking a significant rise that will take effect from April 8, 2024. This announcement, made on November 22, 2024, is based on the Consumer Price Index (CPI) data from September 2024. In addition to this, the basic and new state pensions will also see an 8.5% increase, providing crucial financial support to millions of people across the UK. Here’s a closer look at which benefits will rise and what this means for recipients.
the 6.7% Rise
The 6.7% increase is designed to help benefits keep pace with inflation, ensuring that recipients do not lose purchasing power as the cost of living rises. This adjustment is particularly important given the economic challenges many face, including higher living costs and stagnant wages. The increase applies to a wide range of benefits and pensions administered by the UK Government, affecting millions of people.
The decision to raise benefits by 6.7% comes after reviewing the CPI for September 2024, which indicated that inflation remained significant. Since 2011, the UK has used September’s CPI as the default measure for calculating inflation-related adjustments to benefits and pensions for the following financial year. This method ensures that the adjustments reflect the economic conditions close to the time they are implemented.
Benefits
Several key benefits and pensions will see a 6.7% increase in 2024. Here’s a breakdown of some of the most notable changes:
Universal Credit
Universal Credit, which provides vital financial assistance to low-income households, will see a significant rise. The standard allowance for single individuals under 25 will increase from £292.11 to £311.68, while couples under 25 will see their allowance rise from £458.51 to £489.23. For those aged 25 and older, the allowance will also see a similar increase.
- Single Under 25: £292.11 → £311.68
- Single (25 or more): £368.74 → £393.45
- Couples (both under 25): £458.51 → £489.23
- Couples (one or both 25 or more): £578.82 → £617.60
Attendance Allowance
Attendance Allowance, which supports those with long-term disabilities or health conditions, will also increase. The higher rate will rise from £101.75 to £108.55, and the lower rate will increase from £68.10 to £72.65.
- Higher rate: £101.75 → £108.55
- Lower rate: £68.10 → £72.65
Disability Living Allowance (DLA)
The Disability Living Allowance, which helps with the extra costs of living with a disability, will see increases across both the Care and Mobility Components. The Care Component’s highest rate will go from £101.75 to £108.55, and the Mobility Component’s higher rate will increase from £71 to £75.75.
- Care Component:
- Highest: £101.75 → £108.55
- Middle: £68.10 → £72.65
- Lowest: £26.90 → £28.70
- Mobility Component:
- Higher rate: £71 → £75.75
- Lower rate: £26.90 → £28.70
Personal Independence Payment (PIP)
PIP, another benefit for those with disabilities, will see the daily living component’s enhanced rate rise from £101.75 to £108.55, while the standard rate will increase from £68.10 to £72.65. The mobility component will also rise similarly.
- Daily Living Component:
- Enhanced: £101.75 → £108.55
- Standard: £68.10 → £72.65
- Mobility Component:
- Enhanced: £71 → £75.75
- Standard: £26.90 → £28.70
Industrial Injuries Disablement Benefit
The Industrial Injuries Disablement Benefit, which supports those injured at work, will see an increase in both the weekly payments and the maximum life gratuity.
- Weekly Amount (100% disablement): £207.60 → £221.50
- Maximum Life Gratuity: £13,780 → £14,700
Statutory Payments
Statutory payments like paternity, sick, maternity, and adoption pay will also increase. The standard rate for statutory paternity and maternity pay will rise from £172.48 to £184.03, reflecting the general increase across statutory benefits.
- Statutory Paternity Pay: £172.48 → £184.03
- Statutory Maternity Pay: £172.48 → £184.03
- Statutory Sick Pay: £109.40 → £116.75
State Pension
The Additional State Pension, a critical source of income for many retirees, will increase from £204.68 to £218.39, helping pensioners maintain their standard of living despite inflationary pressures.
- Maximum Additional State Pension: £204.68 → £218.39
The 6.7% increase in benefits announced by the DWP is a significant step toward helping the UK’s most vulnerable citizens navigate the ongoing economic challenges. These increases, set to take effect on April 8, 2024, will provide much-needed relief to millions of people, ensuring they can better manage the rising cost of living.
For those receiving these benefits, the increase represents a critical adjustment that helps maintain purchasing power and supports day-to-day living. As the UK continues to face economic uncertainties, these adjustments demonstrate the government’s commitment to supporting its citizens through social welfare programs.
FAQs
When will the 6.7% increase in benefits take effect?
The increase will take effect on April 8, 2024.
Which benefits will see the 6.7% increase?
Benefits like Universal Credit, Attendance Allowance, and Disability Living Allowance will rise.
How much will Universal Credit increase by?
For singles under 25, it will rise from £292.11 to £311.68.
What is the new rate for Statutory Sick Pay?
Statutory Sick Pay will increase from £109.40 to £116.75.
Will the Additional State Pension also increase?
Yes, it will increase from £204.68 to £218.39.