April brings the start of a new fiscal year and a change in financial fortunes for everyone.
Household bills across the board will soar this month, with the increase in the energy price cap and rising council tax bills.
Car tax, water bills and broadband and mobile contracts are also about to increase.
But there is one increase which may be more welcome, a rise in state benefits and the state pension.
State benefits will be uprated by 1.7 per cent this month and the state pension will go up by 4.1 per cent.
We take a look at the details.
Which benefits are increasing?
These are the benefits which will be uprated by 1.7 per cent this month:
The state pension remains protected by the triple lock, which means a rise will be in line with the rate of inflation, average earnings or 2.5 per cent, whichever is highest.
This financial year, this means a rise of 4.1 per cent for the state pension.
Universal credit
Universal credit is a payment for people under state pension age and on a low income or out of work. It includes support for the cost of housing, children and childcare and financial support for people with disabilities, carers and people too ill to work.
For the standard allowance, the increases will be as foillows:
- Single under 25, it will go up from £311.68 to £316.98 a month
- Single 25 or over, it will go up from £393.45 to £400.14 a month
- Joint claimants both under 25, it will go up from £489.23 to £497.55 a month
- Joint claimants, one or both 25 or over, it will go up from £617.60 to £628.10 a month
Attendance allowance
This benefit helps with extra costs for those who have a physical or mental disability severe enough they need someone to help look after them.
- The higher rate will go from £108.55 to £110.40 a week.
- The lower rate will go from £72.65 to £73.90 a week.
Carer’s allowance
This is for those who provide care for another person for at least 35 hours a week.
This will go up from £81.90 to £83.30 a week.
Child benefit
This benefit is available to a parent responsible for a child under 16 and those under 20 who are in approved education or training.
- For the first or eldest child, it will go up from £25.60 to £26.05 a week.
- For any additional child, it will go up from £16.95 to £17.25 a week.
Disability living allowance (DLA)
This is a legacy benefit which is gradually being replaced by other benefits, including PIP.
DLA care component rates will increase as follows:
- The highest rate from £108.55 to £110.40 a week
- The middle rate from £72.65 to £73.90 a week
- The lowest rate from £28.70 to £29.20 a week
DLA mobility component rates will increase as follows:
- The higher rate from £75.75 to £77.05 a week
- The lower rate from £28.70 to £29.20 a week
Employment and support allowance
Employment and support allowance (ESA) is for those who have a disability or health condition which affects how much they can work. It provides money to help with living costs for those unable to work and support to get back into work. it is payable to those who are employed, self-employed or unemployed.
For those on personal allowances:
- Single under 25, it will go up from £71.70 to £72.90 a week.
- Single 25 or over, it will go up from £90.50 to £92.05 a week.
- Lone parent under 18, it will go up from £71.70 to £72.90 a week.
- Lone parent 18 or over, it will go up from £90.50 to £92.05 a week.
There are separate increases for couples, premiums for enhanced disability, severe disability and pensioners.
Incapacity benefit
Incapacity benefit is paid to those unable to work due to illness or disability but is being replaced with employment and support allowance (ESA).
There are two types, long term and short term.
- Long-term incapacity benefit will go up from £138.90 to £141.25 a week.
- Short-term incapacity benefit for under state pension age will go up from £104.85 to £106.65 (lower rate) and £124.00 to £126.10 (higher rate) a week.
- Short-term incapacity benefit for over state pension age will go up from £133.25 to £135.50 (lower rate) and £138.90 to £141.25 (higher rate) a week.
- Increase of long-term incapacity benefit for age will go up from £14.70 to £14.95 (higher rate) and £8.15 to £8.30 (lower rate) a week.
- Invalidity allowances will go up from £14.70 to £14.95 (higher rate), £8.15 to £8.30 (middle rate) and £8.15 to £8.30 (lower rate ) a week.
Income Support
Income support is a legacy benefit which is now being replaced by universal credit. For those who are still claiming it, these are the increases.
For those on personal allowances:
- Single under 25, it will go up from £71.70 to £72.90 a week
- Single 25 or over, it will go up from £90.50 to £92.05 a week
- Lone parent under 18, it will go up from £71.70 to £72.90 a week
- Lone parent 18 or over, it will go up from £90.50 to £92.05 a week
Personal independence payment (PIP)
The personal independence payment (PIP) can help with extra living costs if you have both:
- a long-term physical or mental health condition or disability.
- difficulty doing certain everyday tasks or getting around because of your condition.
There are two parts to PIP, a daily living part if you need help with everyday tasks and a mobility part – if you need help with getting around.
For the daily living part:
- Enhanced will go up from from £108.55 to £110.40 a week.
- Standard will go from £72.65 to £73.89 a week.
For the mobility part:
- Enhanced will go up from £75.75 to £77.04 a week
- Standard will go up from £28.70 to £29.19 a week
Pension credit
Pension credit provides extra money to help with living costs for those over state pension age and on a low income. It can also help with housing costs such as ground rent or service charges.
The standard minimum guarantee:
- For a single person, it will go up from £218.15 to £227.10 a week.
- For a couple, it will go up from £332.95 to £346.60 a week.
There are additional amounts for severe disability, looking after children or a carer or if you have savings.
State pension
The basic state pension and new state pension will increase by 4.1 per cent, in line with earnings growth.
- The individual basic state pension will go up from £169.50
to £176.45 a week. - The married rate will go up from £271.05 to £282.15 a week.
- The full new state pension will go up from £221.20 to £230.25 a week.
When will I start seeing increased payments in my bank account?
Benefit rates change in April each year, with the start of a new financial year.
This year the new rates come into force on Sunday 6 April, which means for most the new rates will take effect from Monday 7 April.
However, for some universal credit claimants the increase may be delayed due to due the month-long assessment periods.
State pensions will also go up on the 6 April and so payments after this date will include the 4.1 per cent increase.