Eight DWP benefits that won’t increase this month despite the cost of living crisis

Millions of people across Scotland and the UK claiming benefits from the Department for Work and Pensions (DWP) are expected to see their payments increased from this week.

Most benefits administered by the UK government department will increase by 3.1% from April 6, meaning many households will receive more money.

As reported by Wales Online, the increase will affect benefits such as the personal independence payment.

READ MORE – Drivers have issued an urgent warning over a car wash mistake that could cost hundreds

However, experts say the new payment rates will actually result in a net loss of income for claimants amid the worsening cost of living crisis – with a 54% increase in energy costs coming into effect on last week.

Although national insurance, council tax, fuel prices – and even day-to-day costs such as shopping – continue to rise, some benefits are not increasing.

Read below for a full rundown of benefits that will remain the same when the new rates take effect on April 6.

Benefit ceiling

The benefit ceiling refers to the maximum amount a household can receive in benefits

Benefit capping level:

  • Couples (with or without children) or single applicants with one child of qualifying age – £384.62 per week, £1,666.67 per month, £20,000 per year
  • Single adult households without children – £257.69 per week, £1,116.67 per month, £13,400 per year

Payment of bereavement assistance

For deaths occurring on or after April 6, 2017:

Standard rate (flat fee) – £2,500

Standard rate monthly payments – £100

Top rate (lump sum) – £3,500

Standard rate monthly payments – £350

Alimony deduction

Flat rate deduction – £8.40 per week

Deduction of a fine or compensation

Standard rate – £5 per week

Reduced rate – £3.75 per week

Dependent child supplement

Weekly rate – £11.35 (payable together with State Pension, Widowed Mother’s Allowance or Widowed Parent’s Allowance, higher rate Short Term Incapacity Allowance or above the state retirement age, long-term incapacity allowance, carer’s allowance, severe invalidity, work incapacity supplement)

Weekly rate when payable for the eldest child for whom child benefit is also paid – £8 (reduced by the difference between child benefit rates, minus £3.65, for the eldest child and subsequent children )

Universal Credit

Amount of custody fees:

  • Maximum for a child – £646.35 per month
  • Maximum for two or more children – £1108.04 per month

Alimony deduction:

  • Flat rate deduction – £36.40 per month

Capital limits:

  • Upper limit – £16,000
  • Amount ignored – £6,000
  • Assumed capital income for every £250 or part thereof between disregarded capital and upper capital limit – £4.35

Any money or savings you have below £6,000 is not taken into account when determining the amount of Universal Credit you should receive.

Benefits experts at Turn2us said a value over £6,000 but less than £16,000 is treated as giving you a monthly income of £4.35 for every £250, or part of £250 , whether it is or not.

This means that if you have £6,300 in savings, £6,000 will not be counted and the remaining £300 will be treated as giving you a monthly income of £8.70.

If you have capital or savings of more than £16,000 as a single applicant or as a couple, you will not be eligible to receive Universal Credit.

If you are a member of a couple but the other person does not apply for Crédit Universel, their capital/savings will still be taken into account.

Get all the latest Glasgow news and headlines straight to your inbox twice a day by signing up to our free newsletter.

From breaking news to breaking news on the coronavirus crisis in Scotland, we’ve got you covered.

The morning newsletter arrives before 9 a.m. daily and the evening newsletter, hand-curated by the team, is sent between 4 and 5 p.m., giving you an overview of the most important stories we covered that day.

To register, simply enter your email address in this link here.

Capital ceilings for other benefits

These are the rules common to income support, income-related jobseeker’s allowance, income-related employment and support allowance (ESA) and housing benefit unless otherwise stated. contrary.

Upper limit – £16,000

Amount ignored – £6,000

Child Unaware (not ESA or Housing Benefit) – £3,000

Amount disregarded (living in a care facility or nursing home) – £10,000

Rules common to retirement credit and housing allowance:

Ceiling on pension credit and beneficiaries of housing allowance and pension credit guarantee credit – No ceiling

Amount disregarded for Pension Credit and Housing Benefit for over-age Pension Credit – £10,000

Amount disregarded (living in a care facility or nursing home) – £10,000

Pension income threshold

Pension income threshold for incapacity benefit – £85

Pension income threshold for ESA based on contributions – £85

Campaign groups such as the Child Poverty Action Group (CPAG) have called for a bigger increase in benefit payments this month, as well as the lifting of the benefit cap.

Child Poverty Action Group chief executive Alison Garnham said the majority of those affected by the benefit cap are families with children who tend to live in areas with high housing costs.

In addition, 63% of them are single-parent households, more than half of which have at least one child under the age of five.

It’s especially difficult for single parents with very young children to escape the ceiling by working (or working more), she said. The level of the benefit cap has not been revised since 2016, so the shortfall in Social Security support that capped families receive, relative to what they need, has increased accordingly, argued the CPAG.

A DWP spokesperson said: “The increase in benefit rates comes on top of a substantial support package for those on the lowest incomes, which includes putting an average of £1,000 more a year into the pockets of working families via changes to Universal Credit and raising the minimum wage by over £1,000 a year for full-time workers.

“Meanwhile, the benefit cap, up to the equivalent of £24,000 wages, ensures fairness for hard-working taxpayer households and a strong incentive to work, while providing a much-needed safety net. “

Officials say there is a legal obligation to review cap levels at least once in every parliament and that this will happen “when the time is right”, but warned that the current and unusual economic times should be taken into account.

The proportion of households affected by the benefit cap remains low compared to the total number of Universal Credit claimants, according to the government.