DWP benefit and pension changes tomorrow in full – as measly rise leaves Brits worse off


Benefits and pensions are rising for millions of Brits by just 3.1% on Monday 11 April – which is far less than inflation and will leave people worse off in real terms. See the full rates here

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Benefits and pensions will rise by 3.1% tomorrow, which technically is the biggest rise to welfare payments for many years.

But the good news ends there, as a vast rise in inflation more than wipes out the cash boost to benefits for millions of Brits.

Universal Credit basic rates (excluding childcare and housing) will rise by just £10.07 a month while the state pension will go up by £5.55 a week.

Carers’ allowance will go up by a measly £2.10 a week while statutory sick pay rises by only £3 a week.

These rates are calculated based on what inflation was in September 2021, at 3.1%.

But inflation is already running above 6% and is expected to peak at 8.7% this year, partly due to a £693 a year surge in energy bills.







Brits are facing a cost of living crisis
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That means there’ll be a whopping £12billion fall in the real value of benefits in 2022-23, the Office for Budget Responsibility said.

The way benefits are calculated suggests that’ll trigger a bumper rise in April 2023, but that’s cold comfort to claimants now.

The OBR wanted it will take benefits “up to 18 months to catch up fully with higher inflation”.

Meanwhile the pensions triple lock – which would have raised the state pension by more than 8% – was suspended.

Ministers blamed a “statistical anomaly” that would have seen pensions rising artificially based on a bounce-back in wages.

But as things have turned out, a rise of more than 8% would have only just seen pensions keep track with inflation.

When the new rates passed in Parliament only one Tory, Peter Bottomley, challenged the whip to vote against the below-inflation rise.

Rebecca, a working parent on a low income, told Save the Children: “My income from benefits will rise by around £24.80 a month.

“But my bus fares have gone up by £13 a month – just for me – and food in the supermarket has increased by around £20 a week, not to mention gas and electricity prices.

“It’s not going to make a difference to my situation.”

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Dan Paskins, Director of UK Impact at the charity, added: “A 3.1% rise to benefits when inflation will peak at 8% just doesn’t add up for struggling families.

“They now face having to make up shortfalls of hundreds of pounds this year as a result of this real terms cut.

“For many, energy price hikes alone will swallow up any extra income. In terms of meeting day to day costs, it won’t even touch the sides.”

Here are the new rates in full:

New DWP payment rates from 11 April 2022

Weekly rates are shown, unless otherwise stated.

Attendance Allowance

Career’s Allowance

Disability Living Allowance

Care Component

  • Highest: £92.40 (from £89.60)

  • Middle: £61.85 (from £60.00)

  • Lowest: £24.45 (from £23.70)

Mobility component

Employment and Support Allowance (ESA)

Housing Benefit

Your personal allowance is used to help calculate how much housing benefit you may be entitled to.

Single person (personal allowance)

  • Under 25: £61.05 (from £59.20)

  • Aged 25 and between State Pension age: £77.00 (from £74.70)

  • Entitled to main phase ESA: £77.00 (from £74.70)

  • You have reached State Pension age: £197.10 (from £191.15)

Lone parent (personal allowance)

  • Under 25: £61.05 (from £59.20)
  • Aged 25 and between State Pension age: £77.00 (from £74.70)

  • Entitled to main phase ESA: £77.00 (from £74.70)

  • You have reached State Pension age: £197.10 (from £191.15)

Couple (personal allowance)

  • Both aged under 18: £92.20 (from £89.45)
  • One or both aged between 18 and state pension credit age: £121.05 (from £117.40)
  • Any age and on main phase ESA: £121.05 (from £117.40)
  • One or both have reached pension age: £294.90 from £286.05)

Disability Benefit (long-term)

Income Support

Jobseeker’s Allowance

Contributions based

Income-based

Maternity/Paternity/Shared Parental Allowance

Pension Credit

Personal Independence Payment (PIP)

Daily Living Component

Mobility Component

State Pension

Widow’s Pension

Statutory Parental Bereavement Pay

Statutory Sick Pay

Universal Credit (monthly rates shown)

standard allowance

Single

Couple

  • Joint claimants both under 25: £416.45 (from £403.93)

  • Joint claimants, one or both 25 or over: £525.72 (from £509.91)

Child Elements

  • First child (born prior to 6 April 2017): £290.00 (from £282.60)

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

For the full list of DWP increases to benefits and the State Pension, visit the Gov.uk website.

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George Holan

George Holan is chief editor at Plainsmen Post and has articles published in many notable publications in the last decade.

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