Universal Credit: April 2022 increase may see some earning far more – new rates explained

Universal Credit: Expert discusses benefits of claiming

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DWP provided benefits usually increase each year to keep up with inflation and April’s rise has been set at 3.1 percent. However, amid record high inflation of almost double this percentage as well as rising energy prices could see those with lower rates losing out.

Next month marks the start of a new financial year where the national minimum wage, National Insurance, benefits and state pension payments are all due to rise.

While the rise is usually a much anticipated event, many are unsure if it will be enough to keep household budgets afloat.

This has come under increasing pressure as charities and economists have cautioned that eight DWP and HMRC benefits could see a cut of up to £720 per year.

The cut is due to the effects of inflation which will slice away at the increases until they are made in line or above the current inflation rate. 

Additionally, rising energy bills could add an estimated £693 to annual household bills, pulling the rug out from under the feet of the most vulnerable.

Most affected by this will likely be older Britons on the state pension, who were not granted the potential eight percent increase they had hoped for, due to the suspension of the triple lock for a one-year period.

Instead state pension will also rise by 3.1 percent this year and from April 2023 a new health and social care levy will be imposed and is the first of its kind to affect working pensioners as well.

So what can Britons on Universal Credit expect in April?

Standard allowances

  • Single Britons under 25 currently receive £257.33 which will increase to £265.31
  • Single Britons aged 25 or over currently receive £324.84 and will rise to £334.91
  • Joint claimants under 25 receive £403.93 but will increase to £416.45
  • Joint claimants with one or both parties aged 25 or over receive £509.91 and will rise to £525.72.

Each different aspect of Universal Credit, including the added top-ups and premiums, will also increase this year.

Child amounts

  • First child born prior to April 6, 2017 receives £282.60 and will rise to £290
  • First child born on or after April 6, 2017 or second child and subsequent children receive £237.08 which will increase to £244.58.

Disabled child additions

  • Lower rate is currently £128.89 and will rise to £132.89
  • Higher rate is currently £402.41 and will rise to £414.88.

Other additions

  • Limited capability for work is currently £128.89 and will increase to £132.89
  • Limited capability for work and work-related activity receives £343.63 which will rise to £354.28
  • The carers amount will also rise from £163.73 to £168.81.

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