The Department for Work and Pensions (DWP) has announced substantial reforms to benefits effective this April. Designed to align with inflation and streamline support systems, these updates include higher payment rates and a shift to Universal Credit (UC). Let’s look into what these changes mean for claimants.
Universal Credit
From April 5, Tax Credits will be replaced by Universal Credit, with all claimants transitioned by the end of the month. This move coincides with a boost in UC standard allowances:
| Category | Current Rate | New Rate |
|---|---|---|
| Single under 25 | £311.68 | £316.98 |
| Single 25 and over | £393.45 | £400.14 |
| Joint under 25 | £489.23 | £497.55 |
| Joint 25 and over | £617.60 | £628.10 |
Additional UC components will also increase, such as Limited Capability for Work (LCW), childcare cost elements, and carer support. For instance, childcare support for one child will rise to £1,031.88, and for two or more children, it will reach £1,768.94.
Child Elements
Child-related payments will see adjustments based on birth dates and disability status:
| Child Category | Current Rate | New Rate |
|---|---|---|
| First child (pre-April 2017) | £333.33 | £339.00 |
| First/Second child (post-April 2017) | £287.92 | £292.81 |
| Disabled child (lower rate) | £156.11 | £158.76 |
| Disabled child (higher rate) | £487.58 | £495.87 |
Attendance Allowance
Attendance Allowance supports individuals over the state pension age who need personal care due to illness or disability. Payment rates will increase as follows:
| Rate | Current Amount | New Amount |
|---|---|---|
| Lower | £72.65 | £73.90 |
| Higher | £108.55 | £110.40 |
Carer’s Allowance
Carer’s Allowance is rising from £81.90 to £83.30 weekly. To qualify, individuals must spend at least 35 hours per week caring for someone and meet specific income and residency criteria.
Disability Living Allowance
The Disability Living Allowance (DLA), now limited to under-16s in England, Wales, and Scotland, will see increases in both care and mobility components:
| Component | Rate Type | Current Rate | New Rate |
|---|---|---|---|
| Care | Higher | £108.55 | £110.40 |
| Care | Middle | £72.65 | £73.90 |
| Care | Lower | £28.70 | £29.20 |
| Mobility | Higher | £75.75 | £77.05 |
| Mobility | Lower | £28.70 | £29.20 |
Personal Independence Payment
Personal Independence Payment (PIP) daily living rates will increase to £73.90 for the lower rate and £110.40 for the higher rate. Mobility rates will also rise to £29.20 (lower) and £77.05 (higher).
Pension Adjustments
State pensions and Pension Credit guarantees will receive some of the most notable increases this April:
| Pension Type | Current Rate | New Rate |
|---|---|---|
| State pension (full new) | £221.20 | £230.25 |
| State pension (basic old) | £169.50 | £176.45 |
| Pension Credit (single) | £218.15 | £227.10 |
| Pension Credit (couples) | £332.95 | £344.85 |
These adjustments aim to address inflation and provide better financial security for claimants. Whether you’re moving to UC or benefiting from increased state pension rates, these reforms reflect the government’s commitment to modernizing the welfare system.
SOURCE – LINK
FAQs
What are the main changes to Universal Credit?
The standard allowance is increasing, and Tax Credits will be replaced by UC.
When will these benefit changes start?
All changes are effective from April, with major updates by April 5.
Who can apply for Disability Living Allowance?
DLA applications are open to under-16s in England, Wales, and Scotland.
How much will Attendance Allowance increase?
The lower rate rises to £73.90, and the higher rate to £110.40 weekly.
What is the new full state pension rate?
The full new state pension will increase to £230.25 weekly.
