Benefit and state pension rates changed yesterday - here's what you need to know

By Claire Schofield
Tuesday, 09 April, 2019, 13:59
The changes have seen state pensions rise, but many are faced with having their benefits frozen for the fourth year in a row (Photo: Shutterstock)

Millions of people will have seen their state benefits and pensions change yesterday, following an annual change to the system.

While the changes have seen state pensions rise, many are faced with having their benefits frozen for the fourth year in a row.

What are the key changes?

Old state pensions will rise by £3.25 per week, taking the rate up to £129.20, while the new state pension has gone up by £4.25, increasing the rate to £168.60.

Disability Living Allowance, Personal Independence Payment and Carers' Allowance have also seen a rise of around 2.4 per cent.

No changes were made to bereavement support, jobseekers' allowance or income support.

Additionally, millions of people will see their benefits remain frozen for the fourth year in a row.

Changes to Universal Credit

A major change to Universal Credit is the rise of the work allowance - the amount people are able to earn before benefits begin to taper - which has increased from £198 to £287 per month.

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For those do not receive housing costs, the rate will go up from £409 to £502 per month, amounting to a total rise of £1,000 annually.

This means that families on Universal Credit will now have up to £630 extra earnings over the course of the year.

However, only families with dependent children and those who are disabled get work allowances.

Couple who do not have children, or whose children have now left home, will not benefit from the rise.

Old state pensions will rise by £3.25 per week, while the new state pension has gone up by £4.25 (Photo: Shutterstock)

Benefit and state pension rates

These are the changes to the following rates (listed per week, unless otherwise stated):

Attendance allowance - now £87.65, up from £85.60Bereavement support payment - now £2,500 or £3,500 lump sum (frozen)Benefit cap - now £23,000 per year in London, or £20,000 outside (frozen)Carers' allowance - now £66.15, up from £64.60Disability Living Allowance - now £148.85 maximum, up from £145.35Employment and Support Allowance - now £73.10 basic for over-25s (frozen)ESA component for 'work-related activity' group - now £29.05 (frozen)ESA component for 'support' group - now £38.55, up from £37.65ESA severe disability premium - now £65.85, up from £64.30Housing benefit - now £73.10 for single people over 25, or £114.85 for couples over 18 (frozen)Jobseekers' allowance - now £73.10 for over-25s, or £57.90 under-25s (frozen)Maternity allowance - now £148.6, up from £145.18Statutory maternity/paternity leave pay - now £118.00, up from £116.00PIP daily living enhanced - now £87.65, up from £85.60PIP daily living standard - now £58.70, up from £57.30PIP mobility enhanced - now £61.20, up from £59.75PIP mobility standard - now £23.20, up from £22.65New State Pension - now £168.60, up from £164.35Old State Pension - now £129.20, up from £125.95Pension credit - now £167.25 minimum guarantee for a single person, up from £163.00

A full breakdown on the new rates from 8 April 2019 can be viewed here

This article originally appeared on our sister site, Edinburgh Evening News