Millions of people across Scotland and the UK claiming benefits from the Department for Work and Pensions (DWP) are expected to see their payments increased from this week.
Most benefits administered by the UK government department will increase by 3.1% from April 6, meaning many households will receive more money.
As reported by Wales Online, the increase will affect benefits such as the personal independence payment.
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However, experts say the new payment rates will actually result in a net loss of income for claimants amid the worsening cost of living crisis – with a 54% increase in energy costs coming into effect on last week.
Although national insurance, council tax, fuel prices – and even day-to-day costs such as shopping – continue to rise, some benefits are not increasing.
Read below for a full rundown of benefits that will remain the same when the new rates take effect on April 6.
Benefit ceiling
The benefit ceiling refers to the maximum amount a household can receive in benefits
Benefit capping level:
- Couples (with or without children) or single applicants with one child of qualifying age – £384.62 per week, £1,666.67 per month, £20,000 per year
- Single adult households without children – £257.69 per week, £1,116.67 per month, £13,400 per year
Payment of bereavement assistance
For deaths occurring on or after April 6, 2017:
Standard rate (flat fee) – £2,500
Standard rate monthly payments – £100
Top rate (lump sum) – £3,500
Standard rate monthly payments – £350
Alimony deduction
Flat rate deduction – £8.40 per week
Deduction of a fine or compensation
Standard rate – £5 per week
Reduced rate – £3.75 per week
Dependent child supplement
Weekly rate – £11.35 (payable together with State Pension, Widowed Mother’s Allowance or Widowed Parent’s Allowance, higher rate Short Term Incapacity Allowance or above the state retirement age, long-term incapacity allowance, carer’s allowance, severe invalidity, work incapacity supplement)
Weekly rate when payable for the eldest child for whom child benefit is also paid – £8 (reduced by the difference between child benefit rates, minus £3.65, for the eldest child and subsequent children )
Universal Credit
Amount of custody fees:
- Maximum for a child – £646.35 per month
- Maximum for two or more children – £1108.04 per month
Alimony deduction:
- Flat rate deduction – £36.40 per month
Capital limits:
- Upper limit – £16,000
- Amount ignored – £6,000
- Assumed capital income for every £250 or part thereof between disregarded capital and upper capital limit – £4.35
Any money or savings you have below £6,000 is not taken into account when determining the amount of Universal Credit you should receive.
Benefits experts at Turn2us said a value over £6,000 but less than £16,000 is treated as giving you a monthly income of £4.35 for every £250, or part of £250 , whether it is or not.
This means that if you have £6,300 in savings, £6,000 will not be counted and the remaining £300 will be treated as giving you a monthly income of £8.70.
If you have capital or savings of more than £16,000 as a single applicant or as a couple, you will not be eligible to receive Universal Credit.
If you are a member of a couple but the other person does not apply for Crédit Universel, their capital/savings will still be taken into account.
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Capital ceilings for other benefits
These are the rules common to income support, income-related jobseeker’s allowance, income-related employment and support allowance (ESA) and housing benefit unless otherwise stated. contrary.
Upper limit – £16,000
Amount ignored – £6,000
Child Unaware (not ESA or Housing Benefit) – £3,000
Amount disregarded (living in a care facility or nursing home) – £10,000
Rules common to retirement credit and housing allowance:
Ceiling on pension credit and beneficiaries of housing allowance and pension credit guarantee credit – No ceiling
Amount disregarded for Pension Credit and Housing Benefit for over-age Pension Credit – £10,000
Amount disregarded (living in a care facility or nursing home) – £10,000
Pension income threshold
Pension income threshold for incapacity benefit – £85
Pension income threshold for ESA based on contributions – £85
Campaign groups such as the Child Poverty Action Group (CPAG) have called for a bigger increase in benefit payments this month, as well as the lifting of the benefit cap.
Child Poverty Action Group chief executive Alison Garnham said the majority of those affected by the benefit cap are families with children who tend to live in areas with high housing costs.
In addition, 63% of them are single-parent households, more than half of which have at least one child under the age of five.
It’s especially difficult for single parents with very young children to escape the ceiling by working (or working more), she said. The level of the benefit cap has not been revised since 2016, so the shortfall in Social Security support that capped families receive, relative to what they need, has increased accordingly, argued the CPAG.
A DWP spokesperson said: “The increase in benefit rates comes on top of a substantial support package for those on the lowest incomes, which includes putting an average of £1,000 more a year into the pockets of working families via changes to Universal Credit and raising the minimum wage by over £1,000 a year for full-time workers.
“Meanwhile, the benefit cap, up to the equivalent of £24,000 wages, ensures fairness for hard-working taxpayer households and a strong incentive to work, while providing a much-needed safety net. “
Officials say there is a legal obligation to review cap levels at least once in every parliament and that this will happen “when the time is right”, but warned that the current and unusual economic times should be taken into account.
The proportion of households affected by the benefit cap remains low compared to the total number of Universal Credit claimants, according to the government.