Major changes in benefits from April by Department for Work and Pensions (DWP):
The Department for Work and Pensions (DWP) has announced major reforms in benefit schemes from April. These changes are aimed at keeping pace with inflation and making support systems more simple. The new schemes include an increase in payment rates and changes to Universal Credit (UC). Let us know, what effect these changes will have on the beneficiaries.
Universal Credit
Tax credit will be converted to Universal Credit (UC) from April 5, and all beneficiaries will be transferred to this system by the end of the month.
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 |
- Increase in standard allowance: The standard allowance amount given under Universal Credit will be increased.
- Additional UC components:
- Limited Capability for Work (LCW) will increase.
- Childcare Support: The amount of support will increase to £1,031.88 for one child and £1,768.94 for two or more children.
- Carer Support: The amount of support will also increase for people who care for someone else.
Child Elements
Changes have also been made to child benefits. The changes will depend on the date of birth and the child’s 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 is provided to people who are over State Pension Age and who require personal care because of illness or disability.
Rate | Current Amount | New Amount |
---|---|---|
Lower | £72.65 | £73.90 |
Higher | £108.55 | £110.40 |
- Payment increases:
- Carer’s Allowance: This amount has increased from £81.90 to £83.30 per week.
- Eligibility: You must spend at least 35 hours a week caring for someone and meet special income and residence criteria.
Disability Living Allowance
The care and mobility components of Disability Living Allowance (DLA), now limited to children under 16 in England, Wales and Scotland, have been increased.
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 (PIP)
The daily living rates under PIP have been increased:
- Daily Living Rates:
- Lower rate: £73.90
- Upper rate: £110.40
- Lower rate: £73.90
- Mobility Rates:
- Lower rate: £29.20
- Upper rate: £77.05
Pension Adjustments
The State Pension and Pension Credit Guarantee will see the most significant increases from this April. These changes are aimed at tackling inflation and providing better financial security to beneficiaries.
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 |
Aim for a simpler and modern welfare system
The changes reflect the Government’s commitment to modernize the welfare system and provide more financial support to people. Whether you’re moving to Universal Credit or taking advantage of increased state pension rates, these reforms are designed to improve your financial situation.
If you’re eligible for these schemes, have the necessary documents and information ready to take full advantage of them.
FAQs
Why is the DWP making changes to these benefits?
The DWP aims to streamline processes, improve efficiency, and ensure better support for eligible claimants with these updates.
When will the DWP changes to benefits take effect?
The updates are expected to roll out gradually over the next few weeks, as per the DWP announcement.
How will these changes impact Universal Credit claimants?
Universal Credit claimants may experience adjustments in payment schedules, eligibility criteria, or additional support provisions.