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DWP Announced 6.7% Rise in Benefits
The Department of Work and Pensions (DWP) has recently announced a 6.7% rise in the benefits for the upcoming year. This significant announcement was made on November 22, 2024. Based on the consumer price index of September 2024, the state pension and benefits will be adjusted in 2024.
The 6.7% rise in the benefits that the DWP recently announced will come into effect on April 8, 2024. In addition, the basic and new pensions will also see a rise of 8.5%. More information about this notable announcement can be obtained by visiting the UK Government’s website.
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List of Benefits That Will Rise By 6.7% Next Year in UK
Various state pensions and benefits will rise by 6.7% in the next year. These benefits include Universal Credit, Attendance Allowance, Disability Living Allowance, Statutory Sick Pay, Additional State Pension, and various other benefits and pensions administered by the UK Government.
The proposed benefit and pension rates for 2024 to 2025 are available on the UK Government’s website. The benefits that will rise by 6.7% in 2024 are those benefits that are linked to inflation.
Since 2011, the inflation in the UK is generally assessed in September before the new financial year begins. The default measure to calculate inflation is CPI. For the upcoming financial year, the benefit and pension rates are affected by the following factors –
- CPI September 2024 – (6.7%)
- The growth of the average weekly earnings from May – July 2024 was 8.5%.
Some of the benefits that will rise in 2024 include –
UNIVERSAL CREDIT:
The standard allowance for single (under 25 years) will be increased from £292.11 to £311.68. Whereas the standard allowance for couples will increase from £458.51 to £489.23. Other allowance rates associated with the Universal Credit, such as Child amounts, Carers amounts, Work allowances, etc., will also be increased in 2024.
| Single Under 25 | £292.11 → £311.68 |
| Single (25 or more) | £368.74 → £393.45 |
| Couples (both under 25) | £458.51 → £489.23 |
| Couples (one or both 25 or more) | £578.82 → £617.60 |
ATTENDANCE ALLOWANCE:
The higher rate of the attendance allowance will increase from £101.75 to £108.55, whereas the lower rate will increase from £68.10 to £72.65.
| Higher rate | £101.75 → £108.55 |
| Lower rate | £68.10 → £72.65 |
DISABILITY LIVING ALLOWANCE:
The Care Component’s higher rate will increase from £101.75 to £108.55, the middle rate will increase from £68.10 to £72.65, and the lower rate from £26.90 to £28.70.
| Lowest | £26.9 → £28.7 |
| Middle | £68.1 → £72.65 |
| Highest | £101.75 → £108.55 |
The Mobility Component’s higher rate will increase from £71 to £75.75, and the lower rate will increase from £26.90 to £28.70.
| Higher rate | £71 → £75.75 |
| Lower rate | £26.9 → £28.7 |
PERSONAL INDEPENDENCE PAYMENT:
The daily living component’s enhanced part will increase from £101.75 to £108.55, and the standard part will increase from £68.10 to £72.65.
| Enhanced | £101.75 → £108.55 |
| Standard | £68.1 → £72.65 |
The mobility component’s enhanced part will increase from £71 to £75.75, and the standard part will increase from £26.90 to £28.70.
| Enhanced | £71 → £75.75 |
| Standard | £26.9 → £28.7 |
INDUSTRIAL INJURIES DISABLEMENT BENEFIT:
The maximum life gratuity will increase from £13780 to £14700. The Weekly amount amount, depending on the level of disablement, will also increase.
| 100% | £207.60 → £221.50 |
| 90% | £186.84 → £199.35 |
| 80% | £166.08 → £177.20 |
| 70% | £145.32 → £155.05 |
| 60% | £124.56 → £132.90 |
| 50% | £103.80 → £110.75 |
| 40% | £83.04 → £88.60 |
| 30% | £62.28 → £66.45 |
| 20% | £41.52 → £44.30 |
People will get £221.50 if their disablement level is 100%, whereas if their disablement level is 20%, they can get up to £44.30 per week in 2024.
STATUTORY PATERNITY PAY:
The standard rate of statutory paternity pay will increase from £172.48 to £184.03.
| Standard rate | £172.48 → £184.03 |
STATUTORY SICK PAY:
The standard rate of statutory sick pay will increase from £109.40 to £116.75.
| Standard rate | £109.40 → £116.75 |
ADDITIONAL STATE PENSION:
The maximum additional state pension (own plus inherited) will increase from £204.68 to £218.39.
| Maximum | £204.68 → £218.39 |
STATUTORY MATERNITY PAY:
The standard rate of statutory maternity pay will increase from £172.48 to £184.03.
| Standard rate | £172.48 → £184.03 |
INCAPACITY BENEFIT:
The long-term incapacity benefit will rise from £130.20 to £138.90. Whereas the short-term incapacity benefit (under state pension age) will increase from £116.20 to £124 (higher rate).
The short-term incapacity benefit (above state pension age) will increase from £130.20 to £138.90 (higher rate).
SEVERE DISABLEMENT ALLOWANCE:
The basic rate of the severe disablement allowance will go up from £92.20 to £98.40. The higher rate will also increase from £13.8 to £14.7. The middle and the lower rates will both increase by £8.15 from £7.65.
| Basic rate | £92.20 → £98.40 |
Age-related addition:
| Lower rate | £7.65 → £8.15 |
| Middle rate | £7.65 → £8.15 |
| Higher rate | £13.80 → £14.70 |
STATUTORY ADOPTION PAY:
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A 6.7% increase in the statutory adoption pay will be implemented on April 8, 2024. This means that the statutory adoption pay will increase from £172.48 to £184.03.
| Standard Rate | £172.48 → £184.03 |
However, the earnings threshold will remain the same, i.e., £123.
In addition to these benefits and state pensions, there are many others that will rise by 6.7% in 2024. The complete list of the pensions and benefits that will rise in 2024 can be found at the authorized web portal of the UK Government.
