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

If you receive government benefits and you’re struggling with the cost of living crisis, you are probably wondering when Universal Credit is going up?

Chancellor Jeremy Hunt announced how much Universal Credit would go up by in his Autumn Statement last year, alongside the news that minimum wage will increase in 2023. The announcement followed weeks of speculation about how much Universal Credit would rise by. It was possible that instead of benefits rising in line with inflation, the amount of money you get with Universal Credit would rise in line with wages instead. 

Phil Agulnik, director at benefits help website EntitledTo, says: “Benefit rates change every April, usually based on the previous September’s rate of inflation. It was hit and miss for a while whether this would happen in 2023 but it’s been confirmed things will increase as usual.”

If you claim Universal Credit you will also be entitled to the new £900 cost of living payment too. Pensioner households will get an extra £300, while those claiming disability benefits will get another £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. 

When is Universal Credit going up?

Universal Credit is going up in April 2023, which is the start of the new tax year. It will rise in line with inflation - this means it will go up by 10.1%. This increase 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.

Phil Agulnik from EntitledTo, adds: “Someone’s actual increase may vary based on their circumstances though. When all of the relevant elements for things like housing, children and disabilities are added up this makes someone’s maximum Universal Credit award, but income and other earnings are then taken into account.”

Other benefits, including the State Pension, Statutory Sick Pay, and payments for disabled people and carers, will also rise in line with inflation at the same time as Universal Credit. 

Most benefits are increased – or “uprated” – each April. The Department of Work and Pensions carries out a formal review in October; the rate at which benefits will increase is normally announced in November and comes into effect the following April. 

The new figures for April will see Universal Credit allowances for both single and joint claimants increase by more than £25.

How much will Universal Credit go up if you have kids?

You get extra Universal Credit for your first and second child. But you won’t get any extra money for any more children unless your children were born before 6 April 2017 or you were already claiming for three or more children before 6 April 2017.

The new payments from April will see monthly payments for parents go up by more than £28 if you have one child, and by more than £24 a month for second and further children.

If you have children, it's important to understand how much Universal Credit will pay towards childcare costs to help make ends meet.

 State Pension rise confirmed for 2023

In April 2023 the State Pension will also go up by 10.1%, which is the level inflation reached in September this year. 

In the Autumn Statement, the Chancellor Jeremy Hunt 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.

Pensioners that reached state pension age before April 2016 claim the Basic State Pension. 

Pension Credit rates 2023/24

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

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

What other benefits will increase in 2023/2024?

Disability payments, statutory sick pay and maternity/paternity allowances will all go up in April 2023 too. 

Attendance Allowance

Attendance Allowance helps pay for your personal care if you've reached State Pension age and are disabled.

It’s paid at two different rates. How much you get depends on the level of care that you need because of your disability.

Carer's Allowance

Carer's Allowance  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: £76.75 (was £69.70) 

Disability Living Allowance

A Disability Living Allowance for children is available - it is split into two categories. One based on money for personal care and another for mobility and getting around. 

It’s paid at three different rates. How much you get depends on the level of care needed.

•  Highest (2023): £101.75 (was £92.40) 
•  Middle (2023): £68.10 (was £61.85) 
•  Lowest (2023): £26.90 (was £24.45) 

Mobility component

•  Higher (2023):  £71 (was £64.50) 
•  Lower (2023): £26.90 (was £24.45) 

Those who are disabled and aged over 16 should claim Personal Independence Payment (PIP) instead. 

Personal Independence Payment (PIP)

Personal Independence Payment (PIP) 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): £101.75 (was £92.40) 
•  Standard (2023): £68.10 (was £61.85) 

Mobility Component

•  Enhanced (2023): £71.01 (was £64.50) 
•  Standard (2023): £26.90 (was £24.45) 

Statutory sick pay

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

• Statutory Sick Pay from April 2023 - £109.40 per week (up from £99.35)

Maternity/Paternity Allowance

A Maternity or Paternity Allowance 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 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) 

What if you still receive legacy benefits?

Some old benefits are gradually being replaced by Universal Credit although some people may still be claiming them. 

Housing Benefit

Housing Benefit 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 25s will see their weekly Housing Benefit payment go up from £61.05 in 2022/23 to £67.20 in 2023/24. Over 25s will see their weekly payment go up from £77 to £84.80.

Jobseeker’s Allowance (contributions or income-based)

Jobseeker’s Allowance (JSA) 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 25s will see their weekly payment go up from £61.05 in 2022/23 to £67.20 in 2023/24. Over 25s will see their weekly payment go up from £77 to £84.80.

Emma Lunn

Emma Lunn is a multi-award winning journalist who specialises in personal finance and consumer issues. With more than 18 years’ experience in personal finance, Emma has covered topics including mortgages, first-time buyers, leasehold, banking, debt, budgeting, broadband, energy, pensions and investments. Emma’s one of the most prolific freelance personal finance journalists with a back catalogue of work in newspapers such as The Guardian, The Independent, The Daily Telegraph, the Mail on Sunday and the Mirror.