Start your week with some good news! The new tax year brings significant increases in important benefits payments, such as the state pension and universal credit, among others. Curious about the changes and how they might impact you?
Wondering about the state pension increase and the reasons behind it?
On Monday, the state pension will see an impressive 8.5% rise – a substantial increase compared to benefits claimants. This is due to the “triple lock” policy, implemented in 2011-12 by the coalition government.
The state pension is set to increase every April based on either the previous September’s consumer prices index measure of inflation (CPI), wage growth, or a minimum of 2.5%. For the upcoming year, the rise will align with wage growth, resulting in an additional 8.5% for pensioners.
State pensions are disbursed every four weeks to individuals who have reached the qualifying age and have made sufficient national insurance contributions.
The new full, flat-rate state pension (for those reaching state pension age after April 2016) will increase from £203.85 to £221.20 per week – equivalent to £11,500 annually.
For those on the older basic state pension (for individuals reaching state pension age before April 2016), the weekly amount will rise from £156.20 to £169.50 – a yearly increase of over £600 to £8,814.
What assistance is available for individuals on the lower, older pension?
Low-income pensioners on the basic rate may qualify for pension credit, which has also seen an increase. This means-tested benefit aims to boost pensioners’ weekly income to £218.15 for singles - up from £201.05. Couples will now receive £332.95 per week, up from £306.85.
Those eligible for pension credit may also access additional financial aid, including cost of living adjustments, housing benefits, council tax reductions, or assistance with heating costs through schemes like the warm home discount. Individuals born before September 25, 1957, are entitled to the annual winter fuel payment.
While those on other benefits do not benefit from the triple lock, their increases are capped at 6.7% this year, based on the CPI increase from last September.
Universal credit, utilized by approximately 6 million individuals in the UK, is a significant player in the benefits landscape, supporting low-income workers and unemployed individuals.
Single individuals under 25 will now receive £311.68 per month (up from £292.11) in basic UC payments. Those 25 and older will see an increase to £393.45 per month (previously £368.74).
Couples where both partners are under 25 will receive £489.23 per month – up from £458.51, while older joint claimants with one or both partners aged 25 or above will get £617.60 per month (previously £578.82).
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Discover more about the various elements of UC and how they can benefit you…
2024-04-08 07:40:26
Post from www.theguardian.com