Universal Credit and benefit payments set to rise next year – how much more will you get? | The Sun

MILLIONS of people on Universal Credit are set to get more cash in their monthly payments next year.

Benefit rates increase annually to keep up with rising costs and claimants will see have more money coming in.

Universal Credit is one of several benefits which is set to increase.

Anyone getting child benefit, housing benefit and personal independence payment could also see higher payments.

The pay rise for millions of struggling households will come in from April next year.

Benefits generally increase each year – this is known as the annual uprating.


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This is so that payments can keep up with the cost of living like food, clothes and fuel which rise over time – this is called inflation.

Payments usually go up based on the rate of inflation for the previous September.

For example in this year benefits were uprated by 3.1% based on inflation in September last year.

The Department for Work and Pensions usually confirm the amount it will rise in November.

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Inflation has reached a 40-year high of 9.4%, and it could rocket further to as much as 11% this year the Bank of England has warned.

And some experts believe it could even hit 15%.

If inflation remains this high into September it means that Universal Credit and other benefits could increase by that amount in April 2023.

Will Universal Credit and other benefits rise in 2023?

Parliamentary under-secretary for the DWP David Rutley MP has said the secretary for work and pensions Therese Coffey will announce her review of benefits and pensions in November.

It comes after a written question to the government by Lib Dem MP Wendy Chamberlin asking the government to review benefits with the energy price cap in mind.

Mr Rutley said benefits will be increased by "at least the increase in prices or earnings", but could be a percentage "she thinks fit" based on what's going on with the economy.

The current standard allowance for single claimants over the age of 25 is £334.91 a month.

If inflation was to remain at 9.1%, payments would increase by £30.47 a month to £365.38.

But if it rises to 11%, payments could reach £371.75 – an increase of £36.84.

That's an extra amount each year of between £365.64 and £442.08 a year.

But inflation could still come in at more or less than this in September, or the government could decide to increase benefit rates by a different amount.

The exact amount more you get will also depend on exactly how much your benefit payments are each month, as there are also extra amounts if you have children or caring responsibilities.

Charities have called for the government to increase benefit rates by more than the 3.1% handed out in April this year, as inflation has since shot up.

Instead the government has offered help through one-off cost of living payments worth up to £1,200 for the most hard up households on benefits.

The government has already confirmed that the triple lock which is used to calculate a rise in the State Pension will apply next year.

It means retirees getting the maximum state pension could get as much as extra £1,059 a year if inflation stays at 11%.

I'm struggling with my bills – what can I do?

There are a number of charities and organisations that may be able to help you piece your finances back together.

You can get in touch with these organisations as they may be able to help you get your finances back on track:

  • National Debtline – 0808 808 4000
  • Step Change – 0800 138 1111
  • Citizens Advice – 0808 800 9060

Don't forget to check that you're getting all the benefits you're entitled to by using a free benefits checker, as this could boost your budget more.

Energy suppliers also have schemes in place where you can apply for free grants to put towards your energy bills.

You can also apply to wipe your energy debt clear, or get money for energy efficient appliances.

Here's the full list of energy suppliers handing out help and information on how to apply.

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Councils also have schemes you can apply to – such as the Household Support Fund and welfare assistance programmes.

You can also get up to £1,000 in cash if you apply to your local council's welfare assistance scheme.

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