DWP proves Universal Credit and pension changes for next year

The government has confirmed the changes to the rates of benefits and state pensions to come into force in 2022.

It follows the Secretary of State for Work and Pension’s annual review, reports the Liverpool Echo.

The changes average that payments will increase for benefits managed by the Department for Work and Pensions (DWP), such as Universal Credit and PIP.

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It also method a rise in the basic and new State Pensions, in addition to the permanent freeze of the triple lock this year.

The rates will be increased in line with the Consumer Price Index (CPI), and will see a 3.1 per cent increase in payments.

Working-age benefits, benefits to help with additional needs arising from disability, carers’ benefits, pensioner premiums in income-related benefits, Statutory Payments, and Additional State Pension will all be included in the rate rise.

The changes average that the basic State Pension will increase to £141.85 per week and the complete rate of new State Pension will increase to £185.15.

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The DWP have said: “In taking this decision, the government carefully considered the fairest approach for both pensioners and younger taxpayers, many of whom have been hardest hit by the financial impacts of the pandemic.

“In addition, last year, we delivered dominant legislation to increase State Pensions by 2.5 per cent, when earnings fell and price inflation increased by half a percentage point. If we hadn’t taken this action, State Pensions would have been frozen.”

This is a one-year response to exceptional circumstances and the government will return the earnings component of the triple lock next year.

The new rates will apply in the tax year 2022/23 and come into effect on April 11, 2022, and the increase to State Pensions applies across England, Scotland, and Wales.

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