People on certain benefits might not get the increase as soon as they think
The 1.7% increase will be automatically applied to benefits, but some recipients may not see this uplift until May. Every April, benefit rates are adjusted to keep pace with inflation.
Last October, Rachel Reeves confirmed that people on benefits would receive a 1.7% boost in April, however, not everyone will be getting this at the same time. Specifically, those on Universal Credit may have to wait until their May payments to see the increase.
This is due to the way Universal Credit is paid; in arrears for the previous four-week assessment period. The benefit rates will be updated on April 6, marking the start of the new tax year but if your assessment period begins before this date, your next payment will still be at the old rate.
For instance, if your assessment period starts on March 24, your next payment is due on April 30. This payment won’t reflect the new rates as it covers a period before the update was made.
Your subsequent assessment period will run from April 24 until May 24, with your next payment due on May 31. As this assessment period started after April 6, this payment will be updated to the new rates.
However, this does mean that almost everyone on Universal Credit won’t see the updated rates in their April payments due to these timings. Even if your assessment period starts on April 11, after the updated rates apply, your next payment won’t be due until May 18.
But this payment will include the new rates, as noted by Turn2Us. Next month, a range of benefits including Personal Independence Payment (PIP), Pension Credit, Carer’s Allowance and Attendance Allowance will see the 1.7% increase too.
The only exception to this benefits-wide uprating is the state pension. This is due to the triple lock guarantee, which ensures that each year the state pension will rise by the highest number between 2.5%, inflation or wage growth.
Last year’s budget saw the Chancellor confirm an increase of 4.1% to match wage growth. The maximum weekly rate for PIP will rise from £184.30 to £187.45, considering both enhanced daily living and mobility components.
The minimum possible claim will go up from £28.70 to £29.20 for the standard rate of the mobility component only. For single people on Pension Credit, the standard minimum guarantee will increase from £218.15 to £227.10, while couples will see an increase from £332.95 to £346.60.
The lowest Attendance Allowance will rise from £72.65 to £73.90, with the higher rate climbing to £110.40 from £108.55. Carer’s Allowance will see a rise from £81.90 to £83.30 per week.
However, the most anticipated change for unpaid carers is likely the increase in the amount they can earn each week without losing their benefits. The previous cap prevented them from earning more than £151, but this will be increased to £196 per week starting April.
