10.1% Benefit Rise Question 17 November 2022 at 2:35PM edited 17 November 2022 at 4:18PM in Benefits & tax credits 12 replies 1.2K views

H_anky12

Hello, with todays announcement of benefits rising with inflation at 10.1% does that mean that all benefits uplift or just universal credit? I am unable to work and so receive the Limited for work and Work related activity add on, will this also go up by the same percentage? Also, what about PIP for disabilities, will that also increase.

Many thanks

M

NedS

One would assume that the increases will apply to all elements of UC, including LCWRA. The government normally announce the actual rates in legislation in the next few weeks/months. Disability benefits such as PIP fall under separate legislation which does state CPI increases so PIP will rise in line with CPI inflation under that legislation. Other benefits such as Child Benefit should also increase in line with CPI.

HillStreetBlues

NedS said:

One would assume that the increases will apply to all elements of UC, including LCWRA.

Not sure on this but I though LCWRA  comes under the disability benefits legislation in regards to the uplift. (That's why if you get LCWRA  you're not affected by the benefits cap).

Spoonie_Turtle

HillStreetBlues said:

NedS said:

One would assume that the increases will apply to all elements of UC, including LCWRA.

Not sure on this but I though LCWRA  comes under the disability benefits legislation in regards to the uplift. (That's why if you get LCWRA  you're not affected by the benefits cap).

No, LCWRA is an element of UC and completely comes under the UC legislation. 

Exemption from the benefits cap also applies to ESA and CA (and the carer element in UC) as well as if earnings are above a certain level.

poppy12345

HillStreetBlues said:

NedS said:

One would assume that the increases will apply to all elements of UC, including LCWRA.

Not sure on this but I though LCWRA  comes under the disability benefits legislation in regards to the uplift. (That's why if you get LCWRA  you're not affected by the benefits cap).

No, it's not classed as a disability benefit. Disability benefits are PIP/DLA/AA and ADP.

rhcp

State pension payments and means-tested and disability benefits to increase by 10.1%, in line with inflation

HillStreetBlues

I didn't know how UC  worked as was basing it on ESA
With ESA the support group element is uplifted in line with inflation  but the main phase or WRAG isn't automatically.

poppy12345

HillStreetBlues said:

I didn't know how UC  worked as was basing it on ESA
With ESA the support group element is uplifted in line with inflation  but the main phase or WRAG isn't automatically.

Working age benefits will rise by 10.1%, boosting the finances of millions of the poorest people in the UK, and the Triple Lock will be protected, meaning pensioners will also get a rise in the State Pension and the Pension Credit in line with inflation.

https://www.gov.uk/government/news/chancellor-delivers-plan-for-stability-growth-and-public-services

calcotti

One thing that troubles me every year for pensioners that with an inflation linked rise those getting the full new State Pension get a bigger rise than those on the old basic State Pension and every year the gap between the two gets bigger.

NedS

calcotti said:

One thing that troubles me every year for pensioners that with an inflation linked rise those getting the full new State Pension get a bigger rise than those on the old basic State Pension and every year the gap between the two gets bigger.

Currently being discussed here:
https://forums.moneysavingexpert.com/discussion/6404135/old-v-new-state-pension

To be fair, the situation will be no different for two people both on the new state pension, but one with a full entitlement and the other with less than a full entitlement.

And pension credit exists to mitigate the shortfall if that is their only income.

calcotti

Thanks Ned, I hadn’t seen that thread.