DWP handing people on Universal Credit, PIP, ESA up to £792 boost

People on three of the most-claimed Department for Work and Pensions (DWP) benefits could be handed up to £792 next year. Rachel Reeves announced many benefits would rise by 1.7 per cent - the level of consumer price index (CPI) inflation in September 2024.

This means more money for people who get benefits such as Pension Credit, Universal Credit, Personal Independence Payment (PIP) and Child Benefit - but the rises are not as generous as they are for those who receive state pension.

The triple lock on state pensions, which ensures the state pension rises in line with whatever is greatest out of, wages for May to July, 2.5% or September's inflation figure - meaning this year that is wage growth coming in at 4.1%.

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Universal Credit - £570

Universal Credit monthly debt deductions to be reduced. If you owe money for debts including rent, council tax, utility bills and advances in benefit payments, you can have deductions automatically taken from your monthly Universal Credit standard allowance.

Currently, the cap on these deductions is up to 25%. Under new plans announced today, this cap will be lowered to up to 15% from April 2025. The Government says this could boost a claimant's income by an average of £420 a year.

As well as this, b enefits, including Universal Credit and Child Benefit, will increase by 1.7% from April 2025. The government Budget documentation explains: "Other State Pension and benefit rates covered by the Department for Work and Pensions (DWP) statutory review will be increased by 1.7%, in line with the increase in CPI in the year to September 2024.

"This includes universal credit and other benefits and statutory payments linked to participation in the labour market; and additional state pension and pension credit elements other than the standard minimum guarantee."

The Budget docs go on to state: "As announced in the Budget, the overall cap for Universal Credit (UC) deductions will be reduced to 15% from April 2025. In addition, child maintenance deductions will now be moved up the priority order before repayments of Advances."

Around 5.7 million Universal Credit families are forecast to benefit from uprating with an average annual gain for a family on Universal Credit estimated to be £150 (equivalent to an increase of around £12.50 per month), however gains will vary depending on the elements received by different family types.

PIP - £96

The daily living component of PIP will rise by up to £96 a year - from £108.55 to £110.40 (enhanced rate) or from £72.65 to £73.89 (standard rate). Those getting the mobility component will see payments rise from £75.75 to £77.04 (enhanced rate) or from £28.70 to £29.19 (standard rate).

People on DLA are being shifted over to PIP. But for those that remain, the highest bracket of payment will rise from £108.55 to £110.40 every four weeks. The middle amount will rise from £72.65 to £73.89 and the lowest bracket from £28.70 to £29.19.

The mobility component (higher bracket) will increase from £75.75 to £77.04. The lower bracket of mobility component will go up from £28.70 to £29.19.

ESA - up to £126

An under-25 claimant will get £72.92 every two weeks, up from £71.70 now - a rise of £1.22 every fortnight, or £2.44 a month or £126 a year.. An over-25 single claimant will get £92.04. an increase from £90.50. A single parent under 18 will get £72.92, up from £71.70. A single parent over 18 will get £92.04, a rise from £90.50.

People on this benefit are slowly being shifted over to Universal Credit. If your income-related ESA claim is ending because you’re making a new claim for Universal Credit, you’ll automatically continue to get the amount of ESA you currently receive, as long as you’re still eligible. You’ll normally get this for 2 weeks, starting from the date of your new claim.

The Department for Work and Pensions (DWP) will write to you telling you how this works.