In April 2024, many claimants of Department for Work and Pensions (DWP) benefits will experience a significant financial shortfall despite a planned increase in payments. Leading charities have raised concerns that this increase will not adequately address the rising costs of essential living expenses.
DWP Benefits Increase Fails to Meet Basic Needs
The upcoming rise in Universal Credit, set at approximately 6.2%, will not sufficiently support vulnerable households. This increase consists of a 2.3% adjustment mandated by the Universal Credit Act 2025 and a 3.8% rise based on the September inflation rate. However, experts argue that the standard allowance remains far below the actual cost of living.
Projected Payments and Annual Shortfalls
- The standard allowance for single individuals is projected to reach around £98 per week.
- This amount falls short of the estimated £120 needed for basic survival.
- As a result, singles could face an annual shortfall exceeding £1,000.
- Couples are expected to receive approximately £154 per week, leading to a yearly gap of about £2,500, as essential costs require an estimated £205 per week.
In addition to Universal Credit, other supportive benefits, including disability allowances and the child element of Universal Credit, are only expected to rise by 3.8%. These increases are deemed insufficient when juxtaposed against rapidly rising costs of rent and energy.
Hardship Ahead for Many Households
Experts from the charity Turn2us emphasize that around 600,000 households benefiting from transitional protection will see no increase in their payments. Their benefits remain frozen due to a prior transfer from older, more beneficial support systems.
Call for an Essentials Guarantee
Charities are advocating for an Essentials Guarantee. This measure would legally ensure that Universal Credit adequately covers basic necessities such as food and heating costs.
DWP’s Position
The Department for Work and Pensions asserts its commitment to moving individuals from welfare dependency into sustainable employment. Officials maintain that keeping Universal Credit rates above inflation is a key element of their overall strategy for reform.
