Universal Credit, Child Benefit and Jobseekers Allowance increases

In this tough financial climate, the April 2020 increase in benefits bring a modicum of positivity – well especially when we consider that there has been no increase in benefits since 2016.

So what do the increases mean for you?

All benefits and tax credits are being increased inline with inflation, meaning a rise of 1.7% as of April 2020. Universal Credit, Working Tax Credit and Local Housing Allowance are also increased.

So, here’s what the new amounts look like:

Changes to Child Benefit

Child Benefit is increasing from £20.70 to £21.05 a week for one child.
If you have more than one child, the additional child rate is increasing from £13.70 to £13.95.
Changes to Universal Credit (Figures include the Enhanced UC standard allowances)

Single under 25
Was: £251.77
Now: £342.72

Single 25 or over
Was: £317.82
Now: £409.89

Joint claimants both under 25
Was: £395.20
Now: £488.59

Joint claimants, one or both 25 or over
Was: £498.89
Now: £594.04

Part of this new amount that claimants will receive, includes an enhanced UC standard allowance of +£86.67 per month which is in response to the coronavirus outbreak.

This breaks down to the same as £1,040 a year (or £20 a week) and this enhanced UC standard allowance is for the next 12 months only.

So, after 12 months, claimants will lose the +£86.67 a month which will see payments change to:

Single under 25
£256.05

Single 25 or over
£323.22

Joint claimants both under 25
£401.92

Joint claimants, one or both 25 or over
£507.37

Changes to Working Tax Credit

Working Tax Credit will also increase by more than £1,000 for 12 months for 2020/2021.

You get a basic amount and extra (known as ‘elements’) on top of this. How much you get depends on things like your circumstances and income. The highest basic amount is £3,040 a year.

Here’s an idea of the amount you could receive:

A couple applying together
Up to £2,045 a year

A single parent
Up to £2,045 a year

Work at least 30 hours a week
Up to £825 a year

Have a disability
Up to £3,220 a year

Have a severe disability
Up to £1,390 a year (usually on top of the disability payment)

Pay for approved childcare
Up to £122.50 (1 child) 
£210 (2 or more children) a week

Changes to Jobseekers Allowance (JSA) (Contribution-based)

Here are the changes to Jobseekers Allowance per week from April 2020.

Under 25
Was: £57.90
Now: £58.90

25 or over
Was: £73.10
Now: £74.35

Changes to Employment and Support Allowance (ESA), Income Support, JSA (income-based) Personal allowances (selected rates)

Here are the changes to ESA, Income Support, JSA per week from April 2020.

Single under 25/lone parent under 18
Was: £57.90
Now: £58.90

Single 25+ / lone parent 18+
Was: £73.10
Now: £74.35
Couple (both over 18)
Was: £114.85
Now: £116.80

Changes to Disability and Carer Benefits

Disability and carer benefits are also increasing and here are the new weekly amounts.

Higher rate of Attendance Allowance
Was: £87.65 
Now: £89.15

Carer’s Allowance
Was: £66.15 
Now: £67.25

Personal Independence Payment (PIP) and Disability Living Allowance (DLA)

The enhanced PIP daily living rates paid weekly have changed.
Was: £87.65 
Now: £89.15

Changes to Statutory Sick Pay (SSP)
Was: £94.25
Now: £95.85 

Changes to National Minimum Wage 

The National Living Wage and the National Minimum Wage also increased in April 2020.

25 and over
£8.72 per hour

21-24 years old
£8.20 per hour
18-20 years old
£6.45 per hour

Under 18 years old
£4.55 per hour

Apprentices
£4.15 per hour