DWP and HMRC’s new state pension and benefits pay rates start on these dates | Personal Finance | Finance

Millions of people are set for an income boost in April when both DWP and HMRC benefits rise again to support high living costs.

The Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC) will implement the annual uprating on two separate dates.

New HMRC payment rates for the 2024/25 tax year will start from April 6 whereas increases from the DWP will begin on April 8.

Most DWP and HMRC benefits will rise by September 2023’s inflation rate of 6.7 percent, while the state pension will see a larger increase of 8.5 percent, based on September’s wage growth rate.

Claimants will receive a letter before the uprating to inform them of their expected payments for the upcoming financial year, which should arrive before April 6.

Here is a summary of some of the new rates confirmed by the DWP and HMRC.

DWP payment rates from April 8

State pension

Chancellor Jeremy Hunt confirmed the state pension will rise in line with the triple lock in April 2024, which means payments will rise in line with September 2022’s wage rate (including bonuses) of 8.5 percent.

The triple lock applies to both the basic state pension and the new state pension to ensure each pot keeps pace with rising costs.

The full basic state pension is available to:

• Men born before April 6, 1951
• Women born before April 6, 1953.

The new state pension is available to:

• Men born on or after April 6, 1951
• Women born on or after April 6, 1953.

To receive any rate of state pension, people must have at least 10 qualifying years on their National Insurance record. The number of qualifying years on this record is used to determine how much state pension a person will receive but usually, to get the full rate, a person should have at least 30.

The new rates to come into effect from April 2024 will be:

Pension Credit

Pension Credit is targeted to help people over state pension age (currently 66) and on a low income with daily living costs, but people do not need to receive the state pension to get this too.

People may get extra amounts if they have other responsibilities and costs. The top-up and extra amounts are known as ‘Guarantee Credit’. The new rates for the standard guarantee element from April 2024 will be:

• Single: £218.15 (up from £201.05 per week)
• Couple: £332.95 (up from £306.85 per week).

Additional amounts for severe disability include:

• Single: £81.50 (from £76.40)
• Couple (one qualifies): £81.50 (from £76.40)
• Couple (both qualify): £163.00 (from £152.80).

Full details on additional payments for carers, children and savings credit can be found on http://GOV.UK here.

Those in receipt of the credit are also granted access to a wide range of other benefits, including help with housing costs, council tax or heating bills.

Personal Independence Payment (PIP)

Personal Independence Payment (PIP) is a benefit distributed by the DWP to help people who need extra help with daily tasks or getting around due to long-term illness, disabilities, and health conditions.

PIP consists of two components: a daily living part for individuals requiring assistance with everyday tasks, and a mobility part for those needing help moving around. Each component has two rates: a standard rate and an enhanced rate.

Whether people get one or both parts and how much they get depends on how difficult they find certain tasks.

In line with the 6.7 percent increase, new rates for both components will be:

Daily living tasks

• Enhanced: £108.55 (from £101.75)
• Standard: £72.65 (from £68.10).

Mobility Component

• Enhanced: £75.75 (from £71.00)
• Standard: £28.70 (from £26.90).

Universal Credit

Universal Credit is distributed by the DWP to people who are on a low income or are unemployed and need help with their living costs. How much a person receives depends on their circumstance, including age, whether they live in a couple, and whether they have children.

People receive a basic ‘standard allowance’, then additional amounts on top based on the number of children they have, disabilities, and so on.

The new standard allowance rates for April 2024 are:

Standard allowance monthly rate

Child amounts:

• First child (born before April 6, 2017): £333.33 (from £315.00)
• First child (born on or after April 6, 2017) / second child and subsequent child (where an exception or transitional provision applies): £287.92 (from £269.58).

To view the full list of increases, including extra amounts, the full list is available here.

Attendance Allowance

Attendance Allowance is targeted at people over the state pension age who need help with personal care or supervision due to illness or a disability.

The benefit is paid at two rates: the lower rate and the higher rate. The amount claimants receive is calculated based on how much help is required, not any current help the person does or doesn’t get.

The new lower and higher weekly payment rates for April 2024 will be:

• Higher rate: £108.55 (from £101.75)
• Lower rate: £72.65 (from £68.10).

Carer’s Allowance

Carer’s allowance is distributed to people who care for someone (who receives certain disability benefits) for at least 35 hours a week.

From April 2024, the rate will increase to £81.90 from £76.75. Meanwhile, the weekly earnings threshold to be eligible for Carer’s Allowance will rise to £151 from £139.

People can choose whether they’d like to be paid weekly or monthly and funds are paid directly into the person’s specified account.

HMRC payment rates from April 6

Child Benefit

People can claim Child Benefit if they’re responsible for bringing up a child who is under 16, or 20 if they stay in approved education or training.

The weekly rates will rise for:

• Eldest or only child: £25.60 (from £24.00)
• Additional children: £16.95 (from £15.90).

Working Tax Credit

Working Tax Credit is paid to people who are in work and on a low income. The new annual rates from April 6 are as follows:

• Basic element: £2,435 (from £2,280)
• Couple and lone parent element: £2,500 (from £2,340)
• Disabled worker element: £3,935 (from £3,685)
• Severe disability element: £1,705 (from £1,595).

Child Tax Credit

Child Tax Credit is paid to people who have children and is paid in addition to Child Benefit.

• Child Tax Credit family element: £545 (no change from last year’s £545)
• Child element: £3,455 (up from £3,235)
• Disabled child rate: £4,170 (up from £3,905)
• Severely disabled child rate: £1,680 (up from £1,575).

Guardian’s Allowance

Guardian’s Allowance can be claimed by people bringing up a child whose parents have died. The new rate from April 6 per week will be:

• From April 2024: £21.75 ( from £20.40).

The full list of increases for state pensions, benefits, and the increased benefit cap can be found here.

It’s important to note that the new payment rates will not be fully reflected until after the payment cycle immediately following the uprating date.

This is because most payments, including State Pensions, Personal Independence Payment (PIP), and Adult Disability Payment (ADP), are made four weeks in arrears.

Universal Credit operates slightly differently, with assessment periods running from month to month on specific dates. As a result, April payments may consist of a combination of old and new rates, with the full, uprated amount expected to arrive in the next payment cycle in May.