DWP benefits including Universal Credit, PIP and Attendance Allowance to rise by 1.7 per cent

Benefit rates will increase next April, the Chancellor has confirmed. Rachel Reeves is delivering her first Budget to the House of Commons this afternoon (October 30).

In her statement, the Labour Chancellor confirmed increases to several benefits for the next financial year. They include Universal Credit, housing benefit and personal independent payment (PIP).

The increases are in line with inflation, which has slowed down in recent months following a turbulent few years. Ms Reeves confirmed benefit rates will rise in line with the consumer price index (CPI) measure of inflation from September 2024, which was 1.7 per cent.

READ MORE: Budget 2024 LIVE as Rachel Reeves announces changes to tax and public spending

Meanwhile, Ms Reeves announced an increase in the carers allowance to the equivalent of 16 hours at national living wage, described as the largest increase since the allowance was introduced. Ms Reeves also announced £1 billion to extend household support fund and discretionary housing payments 'to help those facing financial hardship with the cost of essentials'.

The chancellor also announced a measure to help 'lift children out of poverty', which should help 1.2 million households. She confirmed the level of debt repayments that can be taken from Universal Credit will be lowered from 25 per cent to 15 per cent of standard allowance - making families £420 a year better off on average.

State pensions and the pension credit standard minimum guarantee will rise by 4.1 per cent, thanks to the triple lock. That follows the rate of wage growth from May to July, of 4.1 per cent.

This is what the 1.7 per cent increase will mean for working-age benefits.

Universal Credit (per month)

Under 25s (single) from £311.68 to £316.98

Under 25s (joint claim) from £489.23 to £497.55

Over 25s (single) from £393.45 to £400.14

Over 25s (joint claim) from £617.60 to £628.099

Housing benefit

Single person of pension age from £235.20 to £239.20

Lone parent of pension age from £235.20 to £239.20

Couple (one or both) pension age from £352 to £357.98

Dependent child/young person under 20 from £83.24 to £84.66

Personal independence payment (PIP)

Daily living component from £108.55 to £110.40 (enhanced) or from £72.65 to £73.89 (standard)

Mobility component from £75.75 to £77.04 (enhanced) or from £28.70 to £29.19 (sandard)

Employment support allowance (ESA)

Under 25s (single) from £71.70 to £72.92

Over 25s (single) from £90.50 to £92.04

Lone parent (under 18) from £71.70 to £72.92

Lone parent (18+) from £90.50 to £92.04

Attendance Allowance

The higher from £108.55 to £110.40

Lower rate from £72.65 to £73.89

Disability living allowance (DLA) for under 16s and older people whose DLA hasn’t turned into PIP

Highest amount from £108.55 to £110.40

Middle amount from £72.65 to £73.89

Lowest amount from £28.70 to £29.19

Mobility component higher amount from £75.75 to £77.04

Mobility component lower amount from £28.70 to £29.19

New-style jobseeker's Allowance (weekly)

Under 25s rom £71.70 to £72.92

Over 25s from £90.50 to £92.04

Child benefit (weekly)

Eldest or only child from £25.60 to £26.04

Each additional child £16.95 to £17.24

Maternity, paternity, adoption and shared parental pay (weekly)

From £184.03 to £187.16

Maternity allowance (weekly)

From £184.03 a week to £187.16

Statutory sick pay (weekly)

From £116.75 to £118.73.