In a recent announcement, the Department for Work and Pensions (DWP) confirmed that state pensions and various benefits will rise by 6.7% starting April 8, 2024.
This increase is based on the Consumer Price Index (CPI) inflation rate recorded in September 2024. Alongside this rise, the basic and new pensions will see an even larger increase of 8.5%, providing much-needed financial relief to millions of beneficiaries across the UK.
Here, we provide a detailed breakdown of the benefits that will rise by 6.7%, the reasons behind the increase, and what beneficiaries can expect in 2024.
Overview of the 6.7% Benefits Increase
The DWP’s decision to increase benefits is primarily driven by rising inflation, as measured by the CPI in September 2024. The UK government has used CPI inflation as the standard for adjusting benefits since 2011.
With the inflation rate set at 6.7%, various benefits that are linked to inflation will automatically rise next year.
Starting April 8, 2024, this increase will be applied to several key benefits, helping recipients cope with rising living costs.
Benefits That Will Rise by 6.7% in 2024
Universal Credit
Universal Credit will see increases across different categories. Below are the new standard allowance rates:
| Category | 2023-2024 Amount | 2024-2025 Amount |
|---|---|---|
| Single (Under 25) | £292.11 | £311.68 |
| Single (25 or Older) | £368.74 | £393.45 |
| Couples (Both Under 25) | £458.51 | £489.23 |
| Couples (One or Both 25 or Older) | £578.82 | £617.60 |
In addition to the standard allowance, child amounts, carer’s amounts, and work allowances will also rise.
Attendance Allowance
The Attendance Allowance, which provides financial support to those who need help with personal care, will see the following increases:
| Rate | 2023-2024 Amount | 2024-2025 Amount |
|---|---|---|
| Higher Rate | £101.75 | £108.55 |
| Lower Rate | £68.10 | £72.65 |
Disability Living Allowance (DLA)
The DLA, which supports those with long-term health issues or disabilities, will also increase in 2024:
| Component | 2023-2024 Amount | 2024-2025 Amount |
|---|---|---|
| Care Component (Higher Rate) | £101.75 | £108.55 |
| Care Component (Middle Rate) | £68.10 | £72.65 |
| Care Component (Lower Rate) | £26.90 | £28.70 |
| Mobility Component (Higher Rate) | £71 | £75.75 |
| Mobility Component (Lower Rate) | £26.90 | £28.70 |
Personal Independence Payment (PIP)
The Personal Independence Payment (PIP), which helps those with disabilities manage daily tasks, will see increases in both the daily living and mobility components:
| Component | 2023-2024 Amount | 2024-2025 Amount |
|---|---|---|
| Daily Living (Enhanced) | £101.75 | £108.55 |
| Daily Living (Standard) | £68.10 | £72.65 |
| Mobility (Enhanced) | £71 | £75.75 |
| Mobility (Standard) | £26.90 | £28.70 |
Industrial Injuries Disablement Benefit
For those receiving the Industrial Injuries Disablement Benefit, the maximum life gratuity and weekly payments will increase depending on the level of disablement:
| Disablement Level | 2023-2024 Amount | 2024-2025 Amount |
|---|---|---|
| 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 Sick Pay (SSP) and Paternity Pay
The Statutory Sick Pay (SSP) and statutory paternity pay will rise in 2024:
| Rate | 2023-2024 Amount | 2024-2025 Amount |
|---|---|---|
| Standard Rate | £109.40 | £116.75 |
| Statutory Paternity Pay (Standard) | £172.48 | £184.03 |
Statutory Maternity and Adoption Pay
Statutory maternity and adoption pay will also increase:
| Rate | 2023-2024 Amount | 2024-2025 Amount |
|---|---|---|
| Standard Rate | £172.48 | £184.03 |
Additional State Pension
The maximum additional state pension (including inherited pension) will rise as follows:
| Rate | 2023-2024 Amount | 2024-2025 Amount |
|---|---|---|
| Maximum Pension | £204.68 | £218.39 |
Severe Disablement Allowance
Those receiving the Severe Disablement Allowance will see an increase in their payments:
| Component | 2023-2024 Amount | 2024-2025 Amount |
|---|---|---|
| Basic Rate | £92.20 | £98.40 |
| Age-Related Addition (Lower) | £7.65 | £8.15 |
| Age-Related Addition (Middle) | £7.65 | £8.15 |
| Age-Related Addition (Higher) | £13.80 | £14.70 |
Why Benefits Are Increasing by 6.7%
The DWP’s 6.7% rise in benefits is based on the UK’s inflation rate, measured by the Consumer Price Index (CPI) in September 2024.
Every year, the government assesses inflation in September to adjust benefits for the following financial year. The goal of this adjustment is to help individuals maintain their purchasing power despite rising prices.
Additionally, the 8.5% rise in state pensions is linked to the growth in average weekly earnings between May and July 2024.
The 6.7% rise in benefits for 2024 will bring significant financial relief to millions of UK citizens, helping them cope with rising costs.
Whether you receive Universal Credit, PIP, Disability Living Allowance, or any other DWP-administered benefit, this increase aims to ensure that your financial support remains in line with inflation.
For more information, visit the UK Government’s official website.
FAQs
When will the 6.7% increase in benefits take effect?
The increase will take effect on April 8, 2024.
Which benefits will rise by 6.7% in 2024?
Benefits including Universal Credit, PIP, Attendance Allowance, and others will increase.
Why is the DWP increasing benefits by 6.7%?
The increase is based on the September 2024 CPI inflation rate of 6.7%.
Will state pensions increase in 2024?
Yes, state pensions will rise by 8.5%, which is higher than the 6.7% benefit increase.
How can I find out more about the 2024 benefits increase?
Visit the UK Government’s official website for detailed information.
