The Department for Work and Pensions (DWP) has announced a significant 6.7% increase in state pensions and benefits, effective April 8, 2024. This change follows the Consumer Price Index (CPI) inflation rate of 6.7%, recorded in September 2024.
This boost in benefits and pensions is designed to help UK residents keep up with the rising cost of living. Alongside this, the basic and new state pensions will see an even larger 8.5% increase based on recent earnings growth. Here’s a detailed look at the benefits impacted by this increase.
Benefits
Universal Credit recipients will see their standard allowance adjusted to reflect the 6.7% increase:
| Category | Previous Rate | New Rate |
|---|---|---|
| Single (under 25) | £292.11 | £311.68 |
| Single (25 or over) | £368.74 | £393.45 |
| Couple (both under 25) | £458.51 | £489.23 |
| Couple (one or both 25 or over) | £578.82 | £617.60 |
Additional allowances, such as child, carer, and work allowances, will also be adjusted to reflect this increase.
Attendance Allowance
The Attendance Allowance, available to individuals needing care due to a disability, will increase as follows:
| Rate | Previous Rate | New Rate |
|---|---|---|
| Higher | £101.75 | £108.55 |
| Lower | £68.10 | £72.65 |
Disability Living Allowance (DLA)
The Care and Mobility components of Disability Living Allowance (DLA) are both set to rise:
| Component | Rate | Previous Rate | New Rate |
|---|---|---|---|
| Care | Highest | £101.75 | £108.55 |
| Care | Middle | £68.10 | £72.65 |
| Care | Lowest | £26.90 | £28.70 |
| Mobility | Higher | £71.00 | £75.75 |
| Mobility | Lower | £26.90 | £28.70 |
Personal Independence Payment (PIP)
Personal Independence Payment (PIP), designed to assist individuals with daily living and mobility costs, will increase as follows:
| Component | Rate | Previous Rate | New Rate |
|---|---|---|---|
| Daily Living | Enhanced | £101.75 | £108.55 |
| Daily Living | Standard | £68.10 | £72.65 |
| Mobility | Enhanced | £71.00 | £75.75 |
| Mobility | Standard | £26.90 | £28.70 |
Industrial Injuries Disablement Benefit
This benefit is given to individuals injured or disabled as a result of their work. The weekly rates will adjust based on the level of disablement:
| Disablement Level | Previous Weekly Rate | New Weekly Rate |
|---|---|---|
| 100% | £207.60 | £221.50 |
| 90% | £186.84 | £199.35 |
| 80% | £166.08 | £177.20 |
| 70% | £145.32 | £155.05 |
| 60% | £124.56 | £132.90 |
| 50% | £103.80 | £110.75 |
| 40% | £83.04 | £88.60 |
| 30% | £62.28 | £66.45 |
| 20% | £41.52 | £44.30 |
Statutory Benefits
Various statutory benefits, including paternity pay, sick pay, and adoption pay, are also impacted by the 6.7% increase:
| Benefit | Previous Rate | New Rate |
|---|---|---|
| Statutory Paternity Pay | £172.48 | £184.03 |
| Statutory Sick Pay | £109.40 | £116.75 |
| Statutory Maternity Pay | £172.48 | £184.03 |
| Statutory Adoption Pay | £172.48 | £184.03 |
Additional State Pension
For retirees, the additional state pension will see an increase as well:
| Previous Rate | New Rate |
|---|---|
| £204.68 | £218.39 |
Severe Disablement Allowance
Rates for incapacity benefits and severe disablement allowances are increasing as follows:
| Benefit | Previous Rate | New Rate |
|---|---|---|
| Incapacity Benefit | £130.20 | £138.90 |
| Severe Disablement (Basic) | £92.20 | £98.40 |
| Severe Disablement (Higher) | £13.80 | £14.70 |
These adjustments by the DWP help ensure that benefits keep pace with inflation, providing some much-needed financial relief for individuals relying on these payments for their daily needs. The updated rates offer a response to the increased living costs, helping many maintain financial stability.
FAQs
When does the 6.7% increase take effect?
The increase starts on April 8, 2024.
Which benefits are rising by 6.7%?
Benefits like Universal Credit, DLA, and Attendance Allowance.
Will pensions increase by 6.7%?
Yes, the additional state pension will increase by 6.7%.
What is the new Universal Credit rate for couples?
The new rate is £489.23 for couples under 25.
Where can I find the full list of updated benefits?
Visit the UK Government’s website for a full list.
