The Department for Work and Pensions (DWP) has announced a 6.7% rise in benefits for the upcoming year, starting April 8, 2024.
This increase is tied to the Consumer Price Index (CPI) from September 2024 and reflects efforts to keep pace with rising inflation.
Several benefits and state pensions will be affected, offering much-needed financial relief to low-income individuals, families, and those with disabilities. Here’s a breakdown of the benefits that will rise by 6.7% in 2024 and what this means for claimants.
6.7% Benefits Increase Explained
The benefits increase, announced on November 22, 2024, will come into effect in April 2024. This rise aligns with the CPI inflation rate of 6.7% for September 2024, ensuring that state pensions and benefits reflect the rising cost of living.
Additionally, pensions will see a further boost, with basic and new pensions rising by 8.5% due to average wage growth.
The aim of this increase is to provide extra financial support for households struggling with the ongoing inflationary pressures, ensuring benefits remain sufficient to cover essential living costs.
Benefits That Will Rise by 6.7% in 2024
The following key benefits and allowances will rise by 6.7% from April 2024:
Universal Credit
Universal Credit, a vital benefit for many low-income households, will see a rise in both the standard allowance and additional allowances:
| Claim Type | 2023-24 | 2024-25 |
|---|---|---|
| Single (under 25) | £292.11 | £311.68 |
| Single (25 or over) | £368.74 | £393.45 |
| Couples (both under 25) | £458.51 | £489.23 |
| Couples (one or both 25 or over) | £578.82 | £617.60 |
Attendance Allowance
Attendance Allowance, provided to older adults who need care due to a disability, will also increase:
| Rate | 2023-24 | 2024-25 |
|---|---|---|
| Higher rate | £101.75 | £108.55 |
| Lower rate | £68.10 | £72.65 |
Disability Living Allowance (DLA)
The DLA, which supports children and adults with disabilities, will see increases across both care and mobility components:
| Care Component | 2023-24 | 2024-25 |
|---|---|---|
| Higher rate | £101.75 | £108.55 |
| Middle rate | £68.10 | £72.65 |
| Lower rate | £26.90 | £28.70 |
| Mobility Component | 2023-24 | 2024-25 |
|---|---|---|
| Higher rate | £71.00 | £75.75 |
| Lower rate | £26.90 | £28.70 |
Personal Independence Payment (PIP)
PIP, designed to assist with the costs of living with a disability, will also increase for both daily living and mobility components:
| Daily Living Component | 2023-24 | 2024-25 |
|---|---|---|
| Enhanced | £101.75 | £108.55 |
| Standard | £68.10 | £72.65 |
| Mobility Component | 2023-24 | 2024-25 |
|---|---|---|
| Enhanced | £71.00 | £75.75 |
| Standard | £26.90 | £28.70 |
Industrial Injuries Disablement Benefit
This benefit, which supports those injured at work, will also increase:
| Disablement Level | 2023-24 | 2024-25 |
|---|---|---|
| 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 |
Statutory Payments
Several statutory payments will also increase by 6.7%, including:
- Statutory Paternity Pay: From £172.48 to £184.03
- Statutory Sick Pay: From £109.40 to £116.75
- Statutory Maternity Pay: From £172.48 to £184.03
- Statutory Adoption Pay: From £172.48 to £184.03
Additional State Pension
Those eligible for the additional state pension will also see a rise:
| Pension Type | 2023-24 | 2024-25 |
|---|---|---|
| Maximum additional state pension | £204.68 | £218.39 |
Incapacity Benefit
Incapacity Benefit will increase as follows:
| Benefit Type | 2023-24 | 2024-25 |
|---|---|---|
| Long-term benefit | £130.20 | £138.90 |
| Short-term (under pension age) | £116.20 | £124.00 |
| Short-term (over pension age) | £130.20 | £138.90 |
Severe Disablement Allowance
Severe Disablement Allowance will also rise in 2024:
| Rate | 2023-24 | 2024-25 |
|---|---|---|
| Basic rate | £92.20 | £98.40 |
| Age-related (Lower) | £7.65 | £8.15 |
| Age-related (Higher) | £13.80 | £14.70 |
Why the Increase?
Each year, the UK Government assesses benefits based on inflation and wage growth. For 2024, the benefits will increase by 6.7%, reflecting the September 2024 CPI inflation rate.
In addition, state pensions will see an 8.5% rise due to the growth of average weekly earnings from May to July 2024.
These increases are designed to help households cope with the rising cost of living, especially in areas like energy, food, and housing.
The 6.7% rise in benefits for 2024 reflects the UK Government’s ongoing efforts to support households as inflation continues to impact daily expenses.
With this increase, low-income families, individuals with disabilities, and pensioners will receive additional financial relief to help cover essential costs. Claimants should review the new rates and ensure they are receiving all the benefits they are entitled to.
FAQs
When will the benefits increase take effect?
The 6.7% increase will begin on April 8, 2024.
Which benefits are seeing the 6.7% increase?
Benefits like Universal Credit, PIP, Attendance Allowance, and Disability Living Allowance.
Will pensions also rise?
Yes, state pensions will rise by 8.5%, and additional state pensions will increase by 6.7%.
How is the 6.7% increase calculated?
It’s based on the September 2024 CPI inflation rate.
Where can I find the full list of benefit increases?
The full list is available on the official UK Government website.
