DWP Payment Rates 2024

The Department of Work and Pensions of the UK has confirmed the hike in the weekly state pension by 8.5%. The DWP has announced major changes that would help UK citizens eligible for Universal credits and cost of living allowance.

As per the Triple Lock Policy, the UK government has increased the state pension rate by 8.5% from 8 April 2024. Many pensioners who received New or Basic State pensions would see a boost in their pension amount from 8 April 2024.

The other benefits from DWP and HMRC will go up thanks to the government’s decision to increase the benefit and payment rates for FY 2024-25. The DWP has increased the rates for benefits by 6.7%.

The hike in benefits and pension rates would come as a relief for many UK citizens who are going through the cost of living crisis.

People in the UK can see an increase in payment from May or June payments as it takes three to four weeks for the Department to implement the increase in the payment.

Increase in Universal Credit Payment Rates 2024-25

The claimants of universal credits would receive a universal credit increase of 6.7% to fight inflation and cover the cost of living. Here’s the universal credit payment rates that you will receive in the upcoming month:

Filing Status	Under 25	25 or over 25
Individual	£311.68 (from £ 292.11)	£393 (from £ 368.74)
Couples	£489.23 (from £ 458.51)	£617.60 (from £ 578.82)

For Dependent Child:

First Child (born before 6 April 2017): £333.33
First Child (born on or after 6 April 2017): £287.92

New Pension DWP Payment Rates 2024-25

The pensioners can expect the following new pension amount due to the hike in the pension rates by the UK government following the triple lock policy:

The New State Pension weekly payment is increased to £221.20 from the previous payment of £203.85
The monthly new state pension will amount to £884.80.
The annual new state pension would amount to £11502 or up to £902.

Old State Pension Rates 2024-25

The pensioners eligible for the old state pension can expect the following change in the receiving pension amount from now onwards:

The pension amount for Category A or B basic pensioners is increased to £169.50 from £156.20.
The lower basic pension for a spouse or civil partner’s insurance is increased to 101.55 from £93.60.
The basic pension amount for Category Cor D recipients would be increased to £101.55 from £93.60.

Payment Rate increase of Long-term incapacity of age:

Rate	Amount 2024-25
Higher Rate	£28.40 (from £26.60)
Lower Rate	£14.20 (from 13.30)

Individual Allowance for State Pension:

Rate	Amount 2024-25
Higher Rate	£28.40 (from £26.60)
Middle Rate	£18.20 (from £17.10)
Lower Rate	£9.10 (from £8.55)

Apart from these, the government has increased the benefits rates under the Department of Work and Pensions to some extent to provide relief to UK citizens from inflation and strengthen their purchasing power.

The beneficiaries can check the Benefit and Pension rates issued by the DWP at the updated benefit and pension rates for 2024-25.

Would the hike in pension rates make you pay tax?

The 8.5% hike in pension rates could drag some pensioners to pay income tax from next year as their pension income can surpass the frozen personal allowance of £12,570.

As mentioned earlier, with the increase in pension rate, your annual payment would come to around £11,502, making it £1000 less than the mark of personal allowance threshold, so people who receive private pension or wages more than £89 a week would come under income tax bracket from next year.

The government has frozen the income threshold which could cost the pensioners to pay tax for the first time to the UK government.

The pensioners who would receive £240 a week would be required to save their amount for the income tax.

The HMRC would not deduct the tax directly from your state pension, it would operate on a system of simple assessment, meaning you will receive a bill at the end of the tax year, informing you about the state pension tax due and requesting you to pay the bill by January 31 of the following year.

The hike in benefit and pension rates may help the people living cost of living crisis in fulfilling their basic needs but it could affect some pensioners differently due to stealth tax.

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DWP Payment Rates 2024 – Increased Payout for various Benefits!