Exact amount DWP benefits including Universal Credit and PIP could rise by next year

Benefit payments look set to rise by 1.7% after the rate for September was confirmed today.

The is normally used to determine the annual uprating of some welfare payments, including , with the increase applied in the following April. The rise will be officially confirmed by Chancellor in her Autumn on October 30.

In a interview in November 2023, Rachel Reeves said she believed benefits should continue to increase with "the inflation rate that is traditional, the September inflation" and added: "If you pick and choose from year to year which inflation number is the cheapest thing to do, then what you see is the gradual erosion of people's incomes."

Keep in mind the exact date when the increase comes into effect varies depending on the you’re claiming. The amount that can be taken off benefit payments through deductions and sanctions could also increase. Benefits rose by 6.7% this April, following a 10.1% increase the previous year after inflation surged into double digits.

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It comes as the looks set to rise by 4.1% after a key number used to determine the triple lock was confirmed this week. The triple lock guarantees the state pension rises each April by the highest out of inflation (using the previous September inflation figure), wages (average growth between May and July) or 2.5% - whichever is highest.

Last month, the provisional estimate for wage growth was 4% - but today, the Office for National Statistics (ONS) said this has been revised to 4.1%. As this is lower than inflation, it is likely that wage growth will be used as the key measure for the triple lock. Again, this will confirmed by Rachel Reeves in the Autumn Budget.

It comes after new figures from the (DWP) show more than one million households are missing out on £3billion worth "unfulfilled" benefits. These figures represent people who already claim benefits, but could be entitled to higher payments because their circumstances have changed since their initial claim.

This could be someone in receipt of a disability benefit but their condition has worsened since their initial claim, which means they may be entitled to a higher rate of benefit, or someone receiving help with rent through who has not reported a rent increase.

Full list of benefits set to rise with inflation

There are nine benefits which the Department for Work and Pensions (DWP) is legally required to increase in line with inflation each April. Other benefits including Universal Credit normally rise as well, but these are subject to Parliamentary approval. The benefits that are legally required to rise with inflation are:

• Personal Independence Payment (PIP)
• Disability Living Allowance
• Attendance Allowance
• Incapacity Benefit
• Severe Disablement Allowance
• Industrial Injuries Benefit
• Carer's Allowance
• Additional State Pension
• Guardian's Allowance

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