Approximately three million families will see an average increase of £120 this year in their Universal Credit payments, while changes are also being made to the health element of the benefit and state pensions.
Universal Credit and Disability Benefit Adjustments
The basic allowance for Universal Credit, paid to all claimants, is being adjusted, resulting in an average increase of £120 annually for roughly three million families. However, the health element of Universal Credit, which supports claimants whose disabilities affect their ability to work, is being halved. This reduction will only impact new claimants, with the 2.8 million existing recipients of the health element being protected.
Other benefits, including Personal Independence Payment, Attendance Allowance, Disability Living Allowance, and Carer’s Allowance, have been increased by 3.8% to align with rising prices.
State Pension Increases
The state pension is also rising by 4.8%, due to the triple-lock policy. The new flat-rate state pension, available to those reaching state pension age after April 2016, will increase to £241.30 per week, or £12,547.60 annually – a rise of £574.60. The old basic state pension, for those reaching state pension age before April 2016, will increase to £184.90 per week, or £9,614.80 a year, representing a £439.40 increase.
To receive a full state pension, individuals generally require 35 years of qualifying contributions. The state pension age is currently rising gradually from 66 to 67 over the next two years.
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