MILLIONS of households will this week find out how much their Universal Credit or benefits will rise by next year.
Payments usually rise every April in order to keep up with the cost of things such as food, fuel or household bills.
The process is called “uprating” and payments usually increase in line with the previous September’s inflation figure, which will be published on Wednesday.
Inflation is the measure of how much the prices of goods and services have changed over the past year.
Figures tracking the rate of inflation are published every month but September’s figure is the only one used to increase benefits payments.
Once the figures are released it is expected that the Department for Work and Pensions (DWP) will later confirm how much benefits will be increased – usually before the end of the year.
This year the majority of benefits increased by 6.7% although a few rose by as much as 8.5%.
Meanwhile, in 2023 inflation-linked benefits and tax credits were hiked by 10.1%.
But Universal Credit and other benefits are expected to rise by far less next year.
Inflation was at 2.2% in August and experts expect that this will remain the case for September.
At this rate a single person aged over 25 who is claiming Universal Credit would receive £402.11 a month from April.
This is £8.66 per month more than the £393.45 they currently get.
In comparison, last year monthly Universal Credit payments were hiked by £24.71.
Joint applicants who are aged over 25 may receive around £631.19 per month from April, £13.59 more than they currently get.
This would add up to a £163.08 difference over the course of a year.
But it is still substantially less than the £38.78 a month, or £465.36 a year, uptick they received this year.
Meanwhile, those who are single and aged under 25 could see their currently monthly benefit climb by £6.86.
This would mean their payments rise from £311.68 per month to £318.54 next spring.
The uptick is equivalent to around a third of the boost this year, which was about £19.58 per month.
In comparison, couples who are under 25 could see their payments climb from £489.23 to £500 per month, a difference of just £10.77.
By contrast, this year they saw a £30.72 increase to their payments.
The exact amount more you will get will depend on how much you get now, which can vary depending on your circumstances.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said these increases are “tiny” compared to the amount benefits were boosted during times of higher inflation.
She said: “When you spend a larger proportion of your income on the essentials, and things like energy prices remain so high, making ends meet will still be an enormous struggle for an awful lot of people.”
The amount that benefits payments will go up by could still be slightly higher or lower depending on what inflation actually is.
The Office for National Statistics will release the data on Wednesday morning at 7am.
The following benefits are also legally required to increase each April in line with the previous September’s rate of inflation:
This could mean those who currently receive the lower rate of Attendance Allowance could see their payments rise from £72.65 to £75.56 a week.
Meanwhile people on the higher rate could see their weekly payment boosted from £108.55 to £122.89 a week.
In comparison, people who get Carer’s Allowance could get £85.18 each week from April, £3.28 more than they currently do.
But it is important to bear in mind that the government could choose to increase benefit rates by a different amount.
Danni Hewson, head of financial analysis at AJ Bell, said budgets could be especially tight this year as some additional support is no longer available.
“People are still feeling the pinch, especially since additional cost of living payments ended last February,” he said.
“The hike will once again be considerably smaller than the increase for pensioners, who will see their payments increase by 4% thanks to the triple lock.”
State pension payments also increase every April.
Under an arrangement called the “triple lock” the state pension rises each year by either 2.5%, inflation or earnings growth, depending on which one is higher.
Earnings figures for the three months to July are used to calculate the yearly increase.
This year they indicated that total pay rose at a rate of 4% annually, which is much higher than the rate of inflation.
If this figure is used then the full state pension would rise by £460 next April.
This would mean a typical pensioner who receives the full new state pension would get £230.05 a week, up from £221.20 this year.
Over the space of a year this would give them an income of £11,962.50.
Although this is much higher than the amount benefits are set to rise, it is still well below the boost seen last year.
Pensioners were handed an extra £900 a year when the state pension rose by 8.5% last April.
If you’re struggling to make ends meet then there is help available to you.
For example, you could get hundreds of pounds from your local council through its Household Support Fund.
The scheme aims to provide cash to households struggling to pay for essentials such as water, energy and household items.
For example, families in Birmingham can get £200 to help with winter costs.
What you can get will depend where you live and what support is on offer.
Contact your local council for more information and to apply.
If you are struggling to pay your water, broadband or energy bills then contact your supplier.
They may be able to give you a discount on your bill or set up a payment plan to get you back on track.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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