Benefit rates are set to increase in April.
The boost, outlined by Chancellor Jeremy Hunt in his Autumn Budget, means that those in receipt of government income will see their benefits rise by 10.2 per cent.
This was in line with the UK inflation rate in September, when the Chancellor made his announcement.
It means that those who receive benefits such as Personal Independence Payment, Carer’s Allowance and Universal Credit will all see a rise in their household income. So too will individuals who benefit from Jobseeker’s Allowance, Housing Benefit and Income Support. Here is an outline of some of the main allowances and how they’ll increase:
Attendance Allowance: Those in receipt of the state pension who are disabled - either physically or mentally – will see their weekly Attendance Allowance increase. For those on the lowest rate it will jump from £61.85 to £68.10, while individuals on the highest rate will be better off by more than £8 a week, with a jump from £92.40 to £101.75.
Carers Allowance. Those who look after another individual – whether family or unrelated – for more than 35 hours a week, will see a rise in benefits from is £69.70 to £76.75.
Annual Allowance. From April 6, the amount of money any individual can contribute to their pension in any given year before being taxed is jumping from £40,000 to £60,000.
Bereavement Benefit. TheWidowed Parent’s Allowance will go up from £126.35 to £139.10 per week. But not all benefits of this kind are increasing.Bereavement Support Payment, for instance, will remain fixed at £100 a month for the lower rate and £350 a month for those in receipt of the higher sum.
The New State Pension. This will rise from £185.15 to £203.85 a week for those who claimed after April, 2016 (provided they paid at least 10 years of National Insurance).
Pension Credit. A benefit for those on low income who are of pensionable age, this will jump from £278.70 to £306.85 for a couple and from £182.60 to £201.05 for an individual.
Disability Living Allowance (DLA). This benefit, which provides income for individuals who are disabled will, in future, only be given to those born on or before April 8, 1948. Younger recipients will instead be urged to apply for the Personal Independence Payment (PIP).
Those who are awarded the Care component PIP payment will see it jump from £24.45 to £26.90 (lowest rate), from £61.85 to £68.10 (middle rate) and £92.40 to £101.75 (highest). The lowest Mobility component goes from £24.45 to £26.90 while the higher rises from £64.50 to £71. All rates are weekly.
Employment and Support Allowance (ESA). Those who can’t work through ill health or a disability can apply for ESA. The amount received varies according to age and individual circumstances. A couple who are both aged 18 or over will see their benefit rise from £121.05 to £133.30. A lone parent, over 18 and a single parent, aged 25 and over, will receive £7.80 more when the government income jumps from £77 to £84.80.
Child care. The biggest change in the benefits payments was in child care. Back in the Spring the Chancellor said he would make sure parents in receipt of Universal Credit were better off in this respect. Parents will be given up to £951 for one child being looked after, and £1,630 for two children. Younger children aged from nine months to four years old are to be provided with 30 hours of free childcare. The only downside being, the changes aren’t due to come in for another couple of years.
Get in touch If you need help with applying for Attendance Allowance then get in touch with the team here at Grey Matters. We can point you in the right direction or fill out the form and apply for you. Find out more by calling 01628 947066 or, if you’d prefer, you can email us on info@grey-matters-consultancy.com
