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- The chancellor has announced a 1.7% increase in many benefits from next year
Millions of benefit claimants will see their payments rise by 1.7 per cent from April 2025, today’s Budget figures confirm.
Rachel Reeves announced that many benefits would increase by 1.7 percent, the level of consumer price index (CPI) inflation in September 2024.
This means more money for people receiving benefits such as pension credit, universal credit, personal independence payment (PIP) and child benefit, but the increases are not as generous as they are for those receiving a state pension. .
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Here’s how changes to core benefits will affect recipients, including how much extra will be paid starting in 2025.
All figures listed are the maximum payments offered and the exact amount an individual claimant receives may vary.
pension credit
A single person will get up to £221.86 a week, up from £218.15 currently.
Couples will receive £338.61. an increase of £332.95.
Universal Credit
Single applicants under 25 will receive £316.98 a month, up from £311.68 now.
Joint claimants under 25 will receive £497.55 a month, an increase from £489.23.
Single applicants aged 25 and over will receive £400.14, down from £393.45.
Joint claimants aged 25 and over will receive £628.09, an increase from the current £617.60.
The Government is also creating a new Fair Payment Rate, which limits debt payments made with Universal Credit to 15 per cent of the standard allocation.
It claims this will allow 1.2 million households to retain more of their Universal Credit allowance.
Carer’s allowance
This will increase from £81.90 to £83.29 per week, while a carer can now earn more than £10,000 a year while still receiving the benefit, up from £7,852 currently.
Child benefit
For a child, or eldest child, this will increase from £25.60 to £26.04 per week.
Each additional child adds between £16.95 and £17.24.
Housing benefit
A single applicant of retirement age will receive £239.20 a month, up from £235.20 now.
A single parent who is a pensioner will receive £239.20, an increase from £235.20.
A couple where one or both are pensioners will receive £357.98, up from £352.
NUGGET
The daily living component of PIP will increase from £108.55 to £110.40 (enhanced rate) or from £72.65 to £73.89 (standard rate).
Those who get the mobility component will see payments increase from £75.75 to £77.04 (enhanced rate) or from £28.70 to £29.19 (standard rate).
Employment Support Allowance (ESA)
An applicant under 25 will receive £72.92 every two weeks, up from £71.70 now.
A single applicant aged 25 or over will receive £92.04. an increase of £90.50.
A single parent under 18 will get £72.92, up from £71.70.
A single parent aged 18 or over will receive £92.04, an increase from £90.50.
People receiving this benefit are slowly moving onto Universal Credit.
Assistance Subsidy
The highest rate will increase from £108.55 to £110.40 every four weeks.
The lowest fare will increase from £72.65 to £73.89.
Disability Living Allowance (DLA)
People who receive this benefit are moving to PIP.
But for those who stay, the highest payment level will increase from £108.55 to £110.40 every four weeks.
The average amount will increase from £72.65 to £73.89 and the lowest bracket from £28.70 to £29.19.
The mobility component (higher category) will increase from £75.75 to £77.04.
The lower bracket mobility component will increase from £28.70 to £29.19.
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