DWP benefits set to rise with exact amount confirmed in Budget

Department for Work and Pensions (DWP) benefits including Universal Credit are set to rise by 1.7 per cent in new plans unveiled by the Chancellor during this afternoon’s Autumn Budget, Chancellor Rachel Reeves says. A number of other Department for Work and Pensions ( DWP ) benefits, such as Attendance Allowance and PIP will also rise by the same figure.

Benefits are usually uprated every April based on inflation statistics from the previous September. This year, the Consumer Price Index (CPI) inflation rate increased by 1.7 per cent. Martin Lewis wrote on Twitter/X: "Working age benefits to be uprated by 1.7%, State pension by 4.1% and Pension Credit entitlement also by 4.1% so you can earn up to c£11,800 #Budget."

Turning to the cost of living, the Labour Party Chancellor Rachel Reeves nveiled a National Living Wage increase of 6.7% to £12.21 an hour. “I know that for working people up and down our country, family finances are stretched and pay checks don’t go as far as they used to,” Ms Reeves said.

READ MORE New £175 charge for drivers starting today is 'disaster'

“For the first time, we will move towards a single adult rate, phased in over time, by initially increasing the National Minimum Wage for 18-20 year olds by 16.3% as recommended by the Low Pay Commission, taking it to £10 an hour.”

Ms Reeves has also vowed to crack down on unpaid taxes to raise £6.5 billion by the end of the forecast period. “Before a government considers any change to a tax rate or threshold, it must ensure that people pay what they already owe,” she told the Commons.

“So we will invest to modernise HMRC’s systems using the very best technology and recruit additional HMRC compliance and debt staff. We will clamp down on those umbrella companies who exploit workers, increase the interest rate on unpaid tax debt to ensure people pay on time, and go after promoters of tax avoidance schemes.

“These measures to reduce the tax gap raise £6.5bn by the end of the forecast.”