Explore the details of the DWP’s 6.7% increase in benefits for the upcoming year in the UK. This article provides a comprehensive overview of the benefits that will see a 6.7% rise, including various relevant updates and essential information regarding this adjustment.
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DWP Announced 6.7% Rise in Benefits
The Department for Work and Pensions (DWP) has recently unveiled a 6.7% increase in benefits for the upcoming year. This important update was announced on November 22, 2024, and is based on the Consumer Price Index for September 2024.
The adjustment, which will take effect on April 8, 2024, includes an 8.5% rise in both the basic and new State Pensions. For more details on this significant development, visit the UK Government’s official website.
List of Benefits That Will Rise By 6.7% Next Year in UK
Several state pensions and benefits will see a 6.7% increase in the coming year. This adjustment will apply to various programs, including Universal Credit, Attendance Allowance, Disability Living Allowance, Statutory Sick Pay, Additional State Pension, and other benefits administered by the UK Government.
The UK Government’s website provides detailed information on the proposed benefit and pension rates for 2024-2025. The 6.7% rise will apply to benefits linked to inflation.
Since 2011, UK inflation has typically been assessed in September before the start of the new financial year, using the Consumer Price Index (CPI) as the standard measure. For the upcoming financial year, the following factors have influenced the benefit and pension rate adjustments:
- CPI for September 2024: 6.7%
- Growth in Average Weekly Earnings (May – July 2024): 8.5%
Among the benefits set to rise in 2024 are:
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UNIVERSAL CREDIT:
For 2024, the standard allowance for Universal Credit will see notable increases. The allowance for single individuals under 25 years will rise from £292.11 to £311.68. Couples will also benefit from an increase, with their standard allowance going up from £458.51 to £489.23. Additionally, other components of Universal Credit, including Child amounts, Carers amounts, and Work allowances, will also experience increases.
| Single Under 25 | £292.11 → £311.68 |
| Single (25 or more) | £368.74 → £393.45 |
| Couples (both under 25) | £458.51 → £489.23 |
| Couples (one or both 25 or more) | £578.82 → £617.60 |
ATTENDANCE ALLOWANCE:
The higher rate of Attendance Allowance will rise from £101.75 to £108.55, while the lower rate will increase from £68.10 to £72.65.
| Higher rate | £101.75 → £108.55 |
| Lower rate | £68.10 → £72.65 |
DISABILITY LIVING ALLOWANCE:
The Care Component rates will be adjusted as follows:
| Lowest | £26.9 → £28.7 |
| Middle | £68.1 → £72.65 |
| Highest | £101.75 → £108.55 |
The higher rate of the Mobility Component will rise from £71 to £75.75, while the lower rate will increase from £26.90 to £28.70.
| Higher rate | £71 → £75.75 |
| Lower rate | £26.9 → £28.7 |
PERSONAL INDEPENDENCE PAYMENT:
The enhanced daily living component will rise from £101.75 to £108.55, while the standard daily living component will increase from £68.10 to £72.65.
| Enhanced | £101.75 → £108.55 |
| Standard | £68.1 → £72.65 |
The enhanced mobility component will rise from £71 to £75.75, while the standard mobility component will increase from £26.90 to £28.70.
| Enhanced | £71 → £75.75 |
| Standard | £26.9 → £28.7 |
INDUSTRIAL INJURIES DISABLEMENT BENEFIT:
The maximum life gratuity will rise from £13,780 to £14,700. Additionally, the weekly amounts, which vary based on the level of disablement, will also see an increase.
| 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 |
Individuals with a 100% disablement level will receive £221.50 per week, while those with a 20% disablement level will get up to £44.30 per week in 2024.
STATUTORY PATERNITY PAY:
The standard rate of statutory paternity pay will rise from £172.48 to £184.03.
| Standard rate | £172.48 → £184.03 |
STATUTORY SICK PAY:
The standard rate of Statutory Sick Pay will rise from £109.40 to £116.75.
| Standard rate | £109.40 → £116.75 |
ADDITIONAL STATE PENSION:
The maximum Additional State Pension (including both personal and inherited amounts) will rise from £204.68 to £218.39.
| Maximum | £204.68 → £218.39 |
STATUTORY MATERNITY PAY:
The standard rate of statutory maternity pay will rise from £172.48 to £184.03.
| Standard rate | £172.48 → £184.03 |
INCAPACITY BENEFIT:
The long-term incapacity benefit will increase from £130.20 to £138.90. For those under the state pension age, the short-term incapacity benefit will rise from £116.20 to £124 at the higher rate.
For individuals above the state pension age, the short-term incapacity benefit will also increase from £130.20 to £138.90 at the higher rate.
SEVERE DISABLEMENT ALLOWANCE:
The basic rate of the Severe Disablement Allowance will rise from £92.20 to £98.40. The higher rate will increase from £138.00 to £147.00. Additionally, both the middle and lower rates will see an increase of £8.15, adjusting from £76.50 to £84.65.
| Basic rate | £92.20 → £98.40 |
Age-related addition:
| Lower rate | £7.65 → £8.15 |
| Middle rate | £7.65 → £8.15 |
| Higher rate | £13.80 → £14.70 |
STATUTORY ADOPTION PAY:
Starting April 8, 2024, statutory adoption pay will rise by 6.7%, increasing from £172.48 to £184.03.
| Standard Rate | £172.48 → £184.03 |
The earnings threshold will remain unchanged at £123.
Alongside the benefits and state pensions previously mentioned, numerous other payments will also increase by 6.7% in 2024. For a comprehensive list of all the pensions and benefits that will see this adjustment, please visit the official UK Government website.
How the Increase is Determined
The 6.7% increase in benefits is based on inflation data and the Consumer Price Index (CPI). The CPI tracks the average change in prices paid by consumers for goods and services over time. The Department of Work and Pensions (DWP) utilizes CPI data to adjust benefit rates, ensuring that payments align with the increasing cost of living.
Before announcing benefit increases, the government undertakes a comprehensive review of inflation rates and economic conditions. This review includes analyzing various economic indicators and consulting with experts to determine the appropriate adjustment.
How to Prepare for the Changes
To prepare for the upcoming changes, beneficiaries should:
- Review Their Benefits: Ensure that all personal information and financial details are up-to-date with the DWP. This includes reporting any changes in income, assets, or living circumstances.
- Check Eligibility: Verify eligibility for different benefits and ensure that you are receiving the correct amount. If there are any discrepancies, contact the DWP for clarification.
- Plan Budget Adjustments: With the increase in benefits, review and adjust your household budget to make the most of the additional support. This includes planning for future expenses and saving where possible.
- Stay Informed: Keep up-to-date with any further announcements or changes related to benefits. Regularly check official DWP communications and updates.
Conclusion
The DWP’s announcement of a 6.7% rise in benefits is a significant development that will provide crucial support to many individuals and families across the UK. This increase aims to address the rising cost of living and ensure that benefits continue to provide adequate financial assistance. By understanding the details of the increase and how it affects various benefits, recipients can better prepare for the changes and make the most of the additional support. As the government continues to navigate economic challenges, staying informed and proactive will help ensure that beneficiaries receive the assistance they need.