When is Universal Credit going up and how much will it go up by?

Wondering when is Universal Credit going up? We've got all you need to know from the Chancellor's Autumn Statement, including how much it will go up by

a collage showing when universal credit goes up

People across the UK will be pleased to note that Universal Credit is rising by more than 10% in 2023 - alongside rises in the State Pension rate too.

The new chancellor, Jeremy Hunt has confirmed in the Autumn Statement, that benefits including Universal Credit and the State Pension will rise in line with inflation. That means people claiming these benefits will see payments go up by 10.1% next year. This confirmation comes as families had been wondering if benefits will rise in line with inflation (opens in new tab) or in line with wages (which are rising at a slower rate).

As the cost of living continues to rise, the Chancellor also said that certain benefit claimants would also get a new £900 cost of living payment (opens in new tab). Pensioner households will get £300, while those claiming disability benefits will get £150.

Speaking in the House of Commons, Jeremy Hunt told MPs that “to be British is to be compassionate” and that it was a government priority to look after vulnerable members of society. 

*All benefit figures quoted in this article have been calculated by adding 10.1% to current rates.

When is Universal Credit going up?

Universal credit will increase by 10.1% in April 2023, which is the start of the 2023/24 tax year. This is significantly more than the 3.1% increase that was introduced in April 2022. 

The change will apply to those on the scheme in Scotland, England, Wales and Northern Ireland.

The new figures will see both single and joint claimant allowances increase by more than £25.

Under 25s

  •  Single: £292.11 (up from £265.31 – increase of £26.80) 
  •  Couple: £458.51 (up from £416.45- increase of £42.06) 

Over 25s

  •  Single: £368.74 (up from £334.91 – increase of £33.83) 
  •  Couple: £578.82 (up from £525.72 – an increase of £53.10) 

Child based universal credit will also go up in April 2023. The allowance for a first child born before 6 April 2017 is currently £282.60 and will go up to £311.14, an increase of £28.54.

Meanwhile, a first or subsequent born child born after 6 April 2017 will be entitled to £269.28, up from £244.58, an increase of £24.70.

 State Pension rise confirmed for 2023

In April 2023 the State Pension will go up by 10.1%, which is the level inflation reached in September this year. In the Autumn Statement, the Chancellor, confirmed that the State Pension Triple Lock will be protected. The move guarantees that the State Pension will go up by the higher of inflation, wage growth, or 2.5%.  He said: “To the millions of pensioners who benefit from this measure I say – now and always – this government is on your side.”

The increase will apply to the full State Pension and the older Basic pension.

Those on the Full New State Pension will now receive £203.85 a week, up from £185.15 this year (an increase of £18.70). This will give pensioners a State Pension worth approximately £10,600 a year.

Pensioners that reached state pension age before April 2016 claim the Basic State Pension – they’ll see their weekly payments rise to £156.20, up from £141.85 (an increase of £14.35 a week).

The most vulnerable pensioners, those that claim Pension Credit, will also see their payments go up to 10.1%. 

Pension Credit tops up the income of low-income pensioners to a minimum level. From April it will be worth up to £960 to individuals or £1,470 for couples.

Pension Credit rates 2023/24

  •  Single: £201.04 (was £182.60) 
  •  Couple: £306.85 (was £278.70) 

What other benefits will increase in 2023/2024?

The Universal Credit and State Pension increases are just two benefits changing next year - with rises also announced for disability, statutory sick and maternity/paternity allowances. We've shared some of the all-important changes coming into effect from April 11, 2022:

Attendance Allowance

Attendance Allowance (opens in new tab) helps pay for your personal care if you've reached State Pension age and are disabled.

  • Higher rate (2022): £92.40 (was £89.60)
  • Lower rate (2022): £61.85 (was £60.00)

Carer's Allowance

Carer's Allowance (opens in new tab) is applicable if you care for someone at least 35 hours a week and they get certain benefits. You do not have to be related to or live with them to receive this.

  •  April 2023 rate: £76.74 (was £69.70) 

Disability Living Allowance

A Disability Living Allowance for children (opens in new tab) is available - it is split into two categories. One based on money for personal care and another for mobility and getting around. Those who are disabled and aged over 16 should claim Personal Independence Payment (PIP) instead.

Care Component

  •  Highest (2023): £101.73 (was £92.40) 
  •  Middle (2023): £68.10 (was £61.85) 
  •  Lowest (2023): £26.92 (was £24.45) 

Mobility component

  •  Higher (2023):  £71.01 (was £64.50) 
  •  Lower (2023): £26.92 (was £24.45) 

Personal Independence Payment (PIP)

Personal Independence Payment (PIP) (opens in new tab) can help with extra living costs if you have a long-term physical or mental health condition and difficulty with everyday tasks because of your condition. You must be aged 16 and over.

Daily Living Component

  •  Enhanced (2023): £101.73 (was £92.40) 
  •  Standard (2023): £68.10 (was £61.85) 

Mobility Component

  •  Enhanced (2023): £71.01 (was £64.50) 
  •  Standard (2023): £26.92 (was £24.45) 

Housing Benefit

Housing Benefit (opens in new tab) helps you pay rent if you’re unemployed, on a low income or currently claiming benefits. Though it is slowly being replaced by Universal Credit.

  • Under 25 (2022): £61.05 (was £59.20)
  • 25 or over (2022): £77.00 (was £74.70)

Jobseeker’s Allowance (contributions or income-based)

Jobseeker’s Allowance (JSA) (opens in new tab) helps you financially when you’re unemployed and looking for work. Though new claimants are unable to claim the existing JSA and will instead have to see if they're eligible for the new Jobseeker's Allowance.

  •  Under 25 (2023): £67.22 (was £61.05) 
  •  25 or over (2023): £84.78 (was £77.00) 

Statutory Sick Pay

You can receive Statutory Sick Pay (opens in new tab) if you're too ill to work. It'll be paid by your employer for up to 28 weeks.

  • Standard rate (2022): £99.35 (was £96.35)

Maternity/Paternity Allowance

A Maternity or Paternity Allowance (opens in new tab) is what you can receive when taking time off to have a baby.

  •  Standard rate (2023): £172.48 (was £156.66) 

Statutory Parental Bereavement Pay

Parents can take time off work and receive Statutory Parental Bereavement Pay (opens in new tab) if their child dies before they turn 18. It also applies to someone who has a stillbirth after 24 weeks of pregnancy.

  •  Standard rate (2023): £172.48 (was £156.66) 
Rachel Lacey is a freelance journalist with more than 20 years' experience writing about all areas of personal finance and retirement planning. After 17 years at Moneywise magazine as both writer and editor, Rachel now writes for a variety of websites and newspapers as well as corporate clients. She is passionate about financial education and simplifying money matters for all.
With contributions from