Universal Credit and Other Benefits Set to Dramatically Boost Payments as Inflation Rises | Personal finance | Finance

Inflation and wage levels will determine the increase in most payments, the Department for Work and Pensions said. All cash payments benefit from an annual increase that takes effect in April, with a 3.1% increase in place for the current fiscal year.

This matches the September 2021 Consumer Price Index (CPI) figure.

The previous increase was based on inflation, which has now reached 9.4%, meaning a big cash boost could be on the way for benefit recipients.

Liberal Democrat MP Wendy Chamberlain asked ministers what factors would be taken into account when the benefits are next reassessed.

In a written parliamentary response, DWP Minister David Rutley said: “The Secretary of State must increase some benefits by at least the increase in price or income.

“If it deems it appropriate, having regard to the national economic situation and any other matters it deems relevant, it may increase the others by such percentage or percentages as it deems appropriate.

“Its review will begin in the fall and its decisions will be announced to parliament in November in the usual way.”

The DWP has already said it will not bring sweeping increases in the meantime to ease the cost of living crisis.

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Former Chancellor Rishi Sunak has introduced a cost of living support scheme, including a one-time payment of £650 for those on low incomes.

MPs have asked Work and Pensions Secretary Therese Coffey why the government decided to make these one-off payments based on the cost of living instead of bolstering the benefit system.

She said: “We didn’t necessarily want to change the grades beyond what we had already done with my annual grades review.

“Part of that would mean locking down, but frankly we are coming back to some of the challenges in our IT systems.

“UC (Universal Credit) is much more nimble, our legacy benefits are not, and it’s absolutely critical that people with both legacy benefits and UC receive that payout.

“We are confident that we will get these payments.”

Below is a list of all DWP payout rates for 2022-2023, with the previous amount for 2021-2022 in brackets.

Weekly rates are quoted unless otherwise stated.

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Attendance allowance

Higher fare: £92.40 (from £89.60)

Lower fare: £61.85 (from £60.00)

Bereavement allowance

For deaths between April 9, 2001 and April 5, 2017

Widowed Parent’s Allowance: £126.35 (from £122.55)

Bereavement support payment

For deaths occurring on or after April 6, 2017

Standard rate (lump sum) £2,500 (no change)

Monthly payments at standard rate £100 (no change)

Top lump sum remains at £3,500 (unchanged)

Higher rate monthly payments £350 (unchanged)

Care allowance

£69.70 (from £67.60)

Disabled allowance

Care component

Highest: £92.40 (from £89.60)

Middle: £61.85 (from £60.00)

Lowest: £24.45 (from £23.70)

Mobility component

Superior: £64.50 (from £62.55)

Lower: £24.45 (from £23.70)

Employment and Support Allowance (ESA)

Under 25: £61.05 (from £59.20)

25 or over: £77 (from £74.70)

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Housing allowance

Under 25: £61.05 (from £59.20)

25 or over: £77.00 (from £74.70)

ESA Main Stage Entitlement: £77.00 (from £74.70)

Incapacity benefit

Long term: £118.25 (from £114.70)

Income support

Under 25: £61.05 (from £59.20)

25 or over: £77.00 from (£74.70)

Industrial death benefit

Higher widowhood pension rate: £141.85 (was £137.60)

Reduced rate of widow’s pension: £42.56 (was £41.28)

Widow’s pension: £141.85 (was £137.60)

Job search allowance

Contribution-based JSA

Under 25: £61.05 (from £59.20)

25 or over: £77.00 (from £74.70)

Income-Based JSA

Under 25: £61.05 (from £59.20)

25 or over: £77.00 (from £74.70)

Maternity/Paternity/Shared parental allowance/Parental bereavement allowance

Standard rate: £156.66 (from £151.97)

Pension credit

Single: £182.60 (from £177.10)

Couple: £278.70 (from £270.30)

Personal Independence Payment (PIP)

Component of daily life

Upgraded: £92.40 (from £89.60)

Standard: £61.85 (from £60.00)

Mobility component

Upgraded: £64.50 (from £62.55)

Standard: £24.45 (from £23.70)

State pension

New state pension

£185.15 (from £179.60)

Former state pension

Category A or B Basic: £141.85 (from £137.60)

Category B (lower) basic pension – spouse’s or civil partner’s insurance: £85 (from £82.45)

Category C or D – non-contributory: £85 (from £82.45)

Widow’s pension

Standard rate: £126.35 (from £122.55)

Universal Credit (monthly rates shown)

Standard allowance


Single under 25: £265.31 (from £257.33)

Single 25+: £334.91 (from £324.84)


Joint applicants under 25: £416.45 (was £403.93)

Joint applicants, one or both aged 25 or over: £525.72 (from £509.91)

Children’s amounts

First child (born before April 6, 2017): £290.00 (from £282.60)

First child (born on or after 6 April 2017) or second and subsequent child (where an exception or transitional provision applies): £244.58 (was £237.08)

Additions of children with disabilities

Lower fare: £132.89 (was £128.89)

Higher fare: £414.88 (was 402.41)

Limited work capacity

Limited Work Capacity: £132.89 (was £128.89)

Limited capacity for work and work-related activities: £354.28 (from £343.63)

Helping amount

£168.81 (from £163.73)

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