Autumn Statement: Hunt announces rise in Universal Credit
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Universal Credit claimants, as well as other DWP benefit claimants, will receive a rise in payments in line with the inflation by 10.1 percent next year. Mr Hunt explained that this will benefit families on the benefit by around £600 more each year.
Confirming that benefits and state pensions will rise in line with inflation, the Chancellor told the Commons: “I also commit to uprate such benefits by inflation with an increase of 10.1 percent, that is an expensive commitment costing £11billion.
“But it means 10 million working-age families will see a much-needed increase next year.
“On average, a family on Universal Credit will benefit next year by around £600. And to increase the number of households who can benefit from this decision I will also increase the benefit cap with inflation next year.”
“10 million working-age families will see a much-needed increase next year,” the Chancellor said.
The rate rises will kick in from April 2023.
How much are Universal Credit rates rising?
Standard allowance rates for April 2023/2024, according to Manchester Live:
- single, aged 25 and over – £368.74 – an increase of £33.83
- single, aged 25 and over up with limited capability for work and work-related activity – £758.80 – an increase of £69.61
- single, aged 25 and over with one child – £638.32 – and increase of £58.83
- couple, at least one adult 25 and over and two children – £1,117.98 and increase of £103.10
Another change mentioned affects 600,000 Universal Claimants.
To help more people back into work, the Chancellor said hundreds of thousands of claimants would have to see a work coach.
To help more people become financially free, the Chancellor announced Government support, so claimants have to see a work coach.
The Chancellor explained that he is committed to helping people already in work raise their incomes and progress in their work.
The DWP says work coaches are work coaches are there to help with job searches, and they can give people individual support depending on their needs.
This can include:
- Helping them to identify their transferable skills and how these may help them in jobs or industries they may not have thought of before
- Using their local expertise to help with the job search and to find suitable opportunities for them
- Helping people create, improve and adapt their CV
- Supporting them with job applications and providing advice to increase their chance of success
- Helping people prepare and practise for interviews
However, they warned that serious challenges remain for millions of households.
Joanna Elson CBE, chief executive of the Money Advice Trust, said: “This Autumn Statement will provide relief for some of the households who are among the hardest hit by the cost of living and energy crisis – but serious challenges remain for millions across the country.
“The Chancellor is right to have listened to widespread calls to increase benefits with inflation – and additional targeted payments for the most vulnerable are also welcome.
“But rising daily costs, higher rents and mortgage payments will now be joined by significant hikes in council tax and energy bills in April – which will take an enormous toll on the nation’s personal finances.
“The Government needs to do more to protect households at the sharp end of this crisis.
“This included making sure that no one is pushed into hardship by unaffordable debt repayments, suspending the forced installation of energy pre-payment meters and increasing funding for Council Tax Support schemes for those unable to pay.”
For more information, people can visit the Government website.
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