The UK Chancellor Jeremy Hunt delivered his long-awaited Autumn Statement last week.
Further Cost of Living payments from April 2023
All households on means-tested benefits will get an additional £900 Cost of Living payment in 2023-24 (this was previously £650). We are still awaiting further details on the timing of payments and eligibility.
Pensioner households will receive an additional £300 Cost of Living payment, more details to come on this on eligibility and payments
Individuals who are in receipt of disability benefits such as Personal Independence Payment (PIP), Disability Living Allowance (DLA), Child Disability Living Allowance (DLAC), Adult Disability Payment (ADP), or Child Disability Payment (CDP) will receive an additional £150 Disability Cost of Living payment in 2023-24.
Benefits will increase in line with inflation
All benefits administered by the UK Government will be increased in line with inflation, which is 10.1%, from April 2023.
The Scottish Government has still to announce their response to the Autumn Statement about a similar increase in Scottish benefits.
The benefit cap will also be raised in line with inflation.
This is the limit to the total amount in some benefits (usually housing benefit and universal credit) which working-age people can get.
It will be raised from £20,000 to £22,020 (if you live outside London). For single adults, it will be raised from £13,400 to £14,753.
Reform of support for mortgage interest
For those who have mortgages, from April 2023 anyone on universal credit can apply for a loan to help with interest repayments after three months (previously nine months).
In addition, the government is abolishing the zero earnings rule to allow claimants to continue receiving support while in work and on universal credit.
This will be welcome news for anyone on a low income-struggling to keep up with rising mortgage interest rates.
Managed migration to Universal Credit postponed for Income-related ESA
Plans to migrate anyone on income-related Employment Support Allowance (ESA) to Universal Credit have been postponed to 2028.
However, if you receive Child Tax Credits, you will be migrated over to Universal Credit sooner.
‘In-Work Progression’ for Universal Credit Claimants
And finally, the DWP is bringing forward the nationwide rollout of “In Work-Progression.” This will start with a phased rollout from September 2023.
In-Work Progression means that all universal credit claimants who are in work and whose household income is between 15 and 35 hours x National Living age will be required to meet with a dedicated work coach to increase their hours or earnings.