Find out the DWP Announced 6.7% Rise in Benefits. This article provides a list of the benefits that will see this rise next year in the UK. It also covers other important details related to the announcement.
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DWP Announced 6.7% Rise in Benefits
The Department of Work and Pensions (DWP) has just revealed a 6.7% increase in benefits for the coming year. This announcement was made on November 22, 2024. The adjustment, based on the consumer price index from September 2024, will affect state pensions and other benefits starting in 2024.
The 6.7% boost in benefits will start on April 8, 2024. Additionally, both basic and new pensions will rise by 8.5%. For more details about this update, you can visit the UK Government’s website.
DWP Announced 6.7% Rise in Benefits: Expected to Rise in the UK Next Year
Starting next year, many state pensions and benefits are set to increase by 6.7%. This includes payments like Universal Credit, Attendance Allowance, Disability Living Allowance, Statutory Sick Pay, Additional State Pension, and several other benefits and pensions managed by the UK Government.
You can find the proposed benefit and pension rates for 2024-2025 on the UK Government’s website. The 6.7% rise applies to benefits that are adjusted according to inflation.
Since 2011, inflation in the UK is usually checked in September before the new financial year starts. The main way to measure inflation is using the Consumer Price Index (CPI). For the next financial year, the rates for benefits and pensions are influenced by a few key factors, including:
- CPI for September 2024: 6.7%
- Average weekly earnings increase (May – July 2024): 8.5%
Here are some of the benefits we can expect to see in 2024:
UNIVERSAL CREDIT:
In 2024, the standard allowance for single people under 25 will go up from £292.11 to £311.68. For couples, the standard allowance will rise from £458.51 to £489.23. Other parts of Universal Credit, like amounts for children, carers, and work allowances, will also see increases.
| Type | Old Price | New Price |
|---|---|---|
| Single, under 25 | £292.11 | £311.68 |
| Single, 25 or older | £368.74 | £393.45 |
| Couples, both under 25 | £458.51 | £489.23 |
| Couples, at least one 25 or older | £578.82 | £617.60 |
ATTENDANCE ALLOWANCE:
The higher rate of the attendance allowance will go up from £101.75 to £108.55. Meanwhile, the lower rate will rise from £68.10 to £72.65.
| Type | Old Rate | New Rate |
|---|---|---|
| Higher Rate | £101.75 | £108.55 |
| Lower Rate | £68.10 | £72.65 |
DISABILITY LIVING ALLOWANCE:
The Care Component rates are going up. The higher rate will rise from £101.75 to £108.55. The middle rate will go from £68.10 to £72.65, and the lower rate will increase from £26.90 to £28.70.
| Range | Original Price | New Price |
|---|---|---|
| Lowest | £26.90 | £28.70 |
| Middle | £68.10 | £72.65 |
| Highest | £101.75 | £108.55 |
The higher rate for the Mobility Component will rise from £71 to £75.75, while the lower rate will go up from £26.90 to £28.70.
| Type | Old Rate | New Rate |
|---|---|---|
| Higher Rate | £71 | £75.75 |
| Lower Rate | £26.90 | £28.70 |
PERSONAL INDEPENDENCE PAYMENT:
The daily living component will go up from £101.75 to £108.55, and the standard part will rise from £68.10 to £72.65.
| Service Type | Original Price | New Price |
|---|---|---|
| Enhanced | £101.75 | £108.55 |
| Standard | £68.10 | £72.65 |
The amount for the mobility component’s enhanced part will go up from £71 to £75.75. The standard part will rise from £26.90 to £28.70.
| Service Type | Old Price | New Price |
|---|---|---|
| Enhanced | £71 | £75.75 |
| Standard | £26.90 | £28.70 |
INDUSTRIAL INJURIES DISABLEMENT BENEFIT:
The maximum life gratuity is going up from £13,780 to £14,700. Plus, the weekly payment will also rise, based on how much disablement is involved.
| Discount | Original Price | New Price |
|---|---|---|
| 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 |
If someone is fully disabled (100% disablement level), they’ll receive £221.50. However, if their disablement level is 20%, they can get up to £44.30 each week in 2024.
STATUTORY PATERNITY PAY:
The usual rate for statutory paternity pay is going up from £172.48 to £184.03.
| Old Rate | New Rate |
|---|---|
| £172.48 | £184.03 |
STATUTORY SICK PAY:
The standard rate for statutory sick pay is going up from £109.40 to £116.75.
| Previous Rate | New Rate |
|---|---|
| £109.40 | £116.75 |
ADDITIONAL STATE PENSION:
The maximum amount you can get from your state pension, including any extra you’ve inherited, is going up from £204.68 to £218.39.
| Original | Rewritten |
|---|---|
| Maximum £204.68 → £218.39 | The highest amount is £204.68, which increases to £218.39 |
STATUTORY MATERNITY PAY:
Starting soon, the standard rate for statutory maternity pay will go up from £172.48 to £184.03.
| Old Rate | New Rate |
|---|---|
| £172.48 | £184.03 |
INCAPACITY BENEFIT:
The long-term incapacity benefit is going up from £130.20 to £138.90. For those under state pension age, the short-term incapacity benefit will increase from £116.20 to £124 (higher rate).
If you’re over state pension age, the short-term incapacity benefit will also rise from £130.20 to £138.90 (higher rate).
SEVERE DISABLEMENT ALLOWANCE:
The basic amount for severe disablement allowance will rise from £92.20 to £98.40. The higher rate will go up from £13.80 to £14.70. Both the middle and lower rates will increase by £8.15, moving from £7.65 to £15.80.
| Old Rate | New Rate |
|---|---|
| £92.20 | £92.20 → £98.40 |
Age-related addition:
| Rate Category | Old Rate | New Rate |
|---|---|---|
| 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, there will be a 6.7% rise in statutory adoption pay. This means the amount will go up from £172.48 to £184.03.
| Description | Old Price | New Price |
|---|---|---|
| Standard Rate | £172.48 | £184.03 |
Along with the benefits and state pensions already mentioned, many others will also see a 6.7% increase in 2024. For a full list of the pensions and benefits that will go up next year, check out the official UK Government website.
FAQs
What benefits will see a 6.7% rise next year?
The 6.7% rise announced by the DWP will apply to various benefits, including Universal Credit, State Pension, Disability Living Allowance, and Employment and Support Allowance. This increase is aimed at helping recipients cope with rising living costs.
When will the 6.7% increase in benefits take effect?
The 6.7% increase in benefits will be implemented from April next year. This adjustment ensures that benefits keep pace with inflation and support those relying on them.