Cost of living and benefit increases 2023
Announced in the Autumn Budget 2022, was some extra help to assist us all with the cost of living.
The Government is protecting the most vulnerable in society, many of whom face the biggest challenge making their incomes stretch, by increasing benefits in line with inflation. This means that they will rise by September Consumer Price Index (CPI) inflation – 10.1%. From April 2023
Uprating working age and disability benefits will cost £11 billion next year. More than 10 million working age families will see their benefit payments rise from April 2023.
DWP benefits are fully devolved in Northern Ireland, so it is for the Northern Ireland Executive to decide uprating in Northern Ireland.
New Direct Cost of Living Payments to households on means tested benefits
More than 8 million UK households on means tested benefits will receive an additional Cost of Living Payment of £900 in 2023-24.
This includes all households receiving the following benefits:
Income-based Jobseekers Allowance
Income-related Employment and Support Allowance
Working Tax Credit
Child Tax Credit
These will be made in more than one instalment.
DWP and HMRC will provide further detail on timing of these payments and eligibility dates in due course.
This payment will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards. These payments will be made on a UK-wide basis.
New Cost of Living Payments for pensioners
More than eight million pensioner households across the UK will receive an additional £300 Cost of Living Payment for pensioners in 2023-24 to help with bills. This is in addition to the means tested benefit and disability payments, if eligible.
This payment will be tax-free and will not have any impact on existing benefit awards.
New Disability Cost of Living Payments for people on disability benefits
Over 6 million people across the UK on non-means-tested disability benefits will receive a further £150 Disability Cost of Living Payment in 2023-24, to help with the additional costs they face. This is in addition to the Cost of Living Payments for households on means tested benefits and pensioner households, if eligible.
This includes everyone eligible for:
Disability Living Allowance
Personal Independence Payment
Scottish Disability Benefits
Armed Forces Independence Payment
Constant Attendance Allowance
War Pension Mobility Supplement
DWP will provide further detail on timing of the payments and eligibility dates in due course.
Benefit Cap rise.
In April 2023, the government will also increase the benefit cap in line with inflation by 10.1%.
The benefit cap will rise from £23,000 to £25,323 for families in Greater London and from £20,000 to £22,020 for families nationally.
Lower caps for single households without children will rise from £15,410 to £16,967 in Greater London and from £13,400 to £14,753 nationally.
We all know this will be dependent on being in receipt of certain benefits on certain dates, as yet these dates have not been announced.
Therefore, If you only receive contribution based ESA/JSA etc maybe now is the time to look into the possibility of your household being awarded anything at all via UC, even a payment of £10 a month will likely qualify you for the help, so, even if your not the sole income provider, do the UC calculator in featured posts at top of page, (Scroll across) with household income under £35,000 you maybe surprised to see you do qualify for some help. Get those claims started.