Understanding the UK Benefit Changes from April 2024

This month, there are some big UK Benefit changes. The Department for Work and Pensions (DWP) is rolling out changes that could positively change the pockets of many families and individuals who rely on it.

Right now, it is difficult to know what is going on with our money. There seems to be announcement after announcement and it can be very overwhelming, to say the least. So we are here to break it all down for you, so you know exactly what changes are being made.

From increased support for those with health conditions to more flexible repayment options for Universal Credit advances. The government is making important adjustments to help ease the financial strain on many households.

What are the Biggest UK Benefit Changes?

Below we will talk more in-depth about the biggest changes, including the price changes, specific criteria and how to check if you are eligible. However, here is an overview of the key points. 

Most benefits are rising by 6.7% because of inflation, with some increasing by 8.5%, and some changing their eligibility criteria. That means more money in your pocket if you’re on benefits. 

• The following benefits will be increasing by 6.7%: 
  • Universal Credit
  • Employment and Support Allowance (ESA)
  • Personal Independence Payment (PIP)
  • Disability Living Allowance
  • Employment and Support Allowance 
  • Housing Benefit 
  • Jobseeker’s Allowance 
  • Savings Pension Credit
• State Pension is increasing by 8.5%
• Carer’s Allowance has not increased but the earnings threshold is increasing
• Guaranteed Pension Credit will increase by 8.5%
• Universal Credit Loan Repayments have more breathing room 
• The earning threshold for paying back Child Benefits has increased
• The Household Support Fund has been topped up

Not Sure if You’re Eligible for Any of These Benefits?

Universal Credit

Universal Credit is a means-tested benefit which is paid to you monthly and is there to help cover living costs for those on low income, unemployed, or off work due to sickness or disability.

The standard allowance part of Universal Credit will increase by 6.7% from April 2024. 

What will this look like for you? 

A big change here is the repayment period for a “budgeting advance” (a kind of universal credit loan) – now repayable over 24 months instead of 12, starting December 2024.

Use IE Hub’s Free Benefits Checker to see if you are eligible and how much you could be entitled to.

Employment and Support Allowance

Employment and Support Allowance (ESA) helps you if you have an illness or disability that affects your ability to work.

ESA will also increase by 6.7% from April 2024. 

What will this look like for you? 

According to DWP, 23 groups of medical conditions could make people eligible to receive help. 

The medical conditions are.

• Certain infectious and parasitic diseases;
• Neoplasms;
• Diseases of the blood and blood-forming organs and certain diseases involving the immune mechanism;
• Endocrine, nutritional, and metabolic diseases;
• Mental and behavioural disorders;
• Diseases of the nervous system;
• Diseases of the eye and adnexa;
• Diseases of the ear and mastoid process;
• Diseases of the circulatory system;
• Diseases of the respiratory system;
• Diseases of the digestive system;
• Diseases of the skin and subcutaneous system;
• Disease of the musculoskeletal system and connective tissue;
• Diseases of the genito-urinary system;
• Pregnancy, childbirth, and the puerperium;
• Certain conditions originating in the perinatal period;
• Congenital malformations, deformations and chromosomal abnormalities;
• Symptoms, signs, and abnormal clinical and laboratory findings not elsewhere classified;
• Injury, poisoning, and certain other consequences of external causes;
• External causes of morbidity and mortality;
• Factors influencing health status and contact with health services.

Use IE Hub’s Free Benefits Checker to see if you are eligible and how much you could be entitled to.

Jobseeker’s Allowance

For those claiming Jobseeker’s Allowance, the amount will increase by 6.7%, no matter what style of allowance you receive. 

What will this look like for you? 

Use IE Hub’s Free Benefits Checker to see if you are eligible and how much you could be entitled to.

Personal Independence Payment (PIP)

Personal Independence Payment will also increase by both the daily living part and the mobility part. The amount you receive will depend on your PIP assessment. 

What will this look like for you? 

Use IE Hub’s Free Benefits Checker to see if you are eligible and how much you could be entitled to.

Disability Living Allowance (DLA)

Although PIP has replaced Disability Living Allowance (DLA) for many people, those still receiving DLA will also receive a 6.7% increase in their payments.

What will this look like for you? 

Use IE Hub’s Free Benefits Checker to see if you are eligible and how much you could be entitled to.

Pension Credit

Once you reach State Pension age, if your weekly income is below a certain level, you might be entitled to Pension Credit. It’s made up of two parts: Guaranteed Credit and Savings Credit. Both of these will increase from April 2024.

Guaranteed Credit’s portion will increase by 8.5% and Savings Credit will increase by 6.7%.

Guaranteed Credit

Savings Credit

Use IE Hub’s Free Benefits Checker to see if you are eligible and how much you could be entitled to.

Carer’s Allowance

The amount you can claim for Carer’s Allowance per week will remain at £76.75 a week in 2024. However, the earnings threshold is increasing from £139 to £151 a week. 

This means that you’re able to earn more each week and still receive the full Carer’s Allowance payment.

Child Benefits

Previously, parents who started earning £50,000 a year would have to start paying back with Child Benefits. This threshold has now increased to £60,000 a year. This is also known as the “high income child benefit tax charge”.

Household Support Fund

Extra funding that allows the household support fund to be extended has been put in place. This allows our local councils to use this money to provide support with essential costs to vulnerable groups in certain areas.

If you require extra support from your council, find out about schemes in your area.

To Sum Up UK Benefit Changes

As we’ve pointed out, the government is making many UK Benefit changes in 2024. But remember, everyone’s situation is unique, and there are many more benefits and rate changes we haven’t covered here. 

To get the full picture of how these changes might affect you, you can find a full list of all the updated rates on the GOV.uk website.

It’s also a great idea to see if you could be eligible for more support. Why not try IE Hub’s free Benefits Checker? It’s a simple way to find out if you’re missing out on any benefits, including those we’ve talked about.