Changes in Universal Credit, Retirement Credit and PIP rates in 2021

This spring, benefit rates for millions of people will change.

Universal credit, personal independence payments, jobseeker’s allowance and many more are expected to increase, as reported by the Department of Work and Pensions.

Previously, benefit levels had not increased with inflation for at least four years due to a benefit freeze.

But this was lifted in April 2020 after being in place since 2016.

Here are the changes coming in April of this year.

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Universal Credit

The standard allowance for singles under 25 will drop from £ 256.05 to £ 257.33, while for those 25 and over it will drop from £ 323.22 to £ 324.84, Chronicle Live reports.

For couples under 25, payments will drop from £ 401.92 to £ 403.93. When either or both are 25 or over, it will drop from £ 507.37 to £ 509.91.

For a first child born before April 6, 2017, payments will increase from £ 281.25 to £ 282.50. For children born after that date or the second or subsequent children, it drops from £ 235.83 to £ 237.08.

For people with a disabled child, the lower rate of the additional payment goes from £ 128.25 to £ 128.89 and the top rate from £ 400.29 to £ 402.12.



Department of Work and Pensions.

For people considered to have limited working capacity, the additional amount drops from £ 128.25 to £ 128.89

For those considered to have limited capacity for work or a work-related activity, the additional amount increases from £ 341.92 to £ 343.63

People on UC who need help with childcare costs can recover up to 85%.

For people in UC with one child, the maximum amount awarded for childcare costs remains the same at £ 646.35

For people in UC with two or more children, the maximum amount allowed for childcare costs remains the same at £ 1,108.04

If you are on UC and provide care for at least 35 hours per week to a severely disabled person who is receiving a disability related benefit, the additional amount you receive in your UC increases from £ 162.92 to £ 163.73

Housing costs contributions for non-dependent people are reduced from £ 75.15 to £ 75.53 (this is the amount taken out of your UC).

Personal Independence Payments (PIP)

The daily life component will increase from £ 89.15 to £ 89.60 for people with enhanced payments, while those with standard claims will see an increase from £ 59.70 to £ 60.

The mobility component will increase from £ 62.25 to £ 62.55 for people with enhanced complaints. Standard claims will drop from £ 23.60 to £ 23.70.

Job search allowance

The contribution-based JSA will drop from £ 58.90 to £ 59.20 for those under 25, while for those 25 or over it will drop from £ 74.35 to £ 74.70.

Care allowance

This amount will drop from £ 67.25 to £ 67.60.

Disabled allowance

The care component will drop from £ 89.15 to £ 89.60 for the highest level, from £ 59.70 to £ 60 for the intermediate level and from £ 23.60 to £ 23.70 for the lowest.

The mobility component will drop from £ 62.25 to £ 62.55 for the upper level and from £ 23.60 to £ 23.70 for the lower level.

Employment and support allowance

For single households under 25, the ESA will drop from £ 58.90 to £ 59.20. For those 25 or over, it will drop from £ 74.35 to £ 74.70.

For single parents it will drop from £ 58.90 to £ 59.20 for those under 18.

For single parents aged 18 or over, it will drop from £ 74.35 to £ 74.70.

Couples will also see the payments increase depending on the circumstances.

Housing allowance

Single households under 25 will drop from £ 58.90 to £ 59.20. Payments for those 25 and over will drop from £ 74.35 to £ 74.70.

For single parents under 25, it will drop from £ 74.35 to £ 74.70.

Couples who are both under 18 will see their payments drop from £ 89 to £ 89.45, while those with one or both over 18 will see their payments drop from £ 116.80 to £ 117 , £ 40.

Dependent children will see payments drop from £ 68.27 to £ 68.60.

Incapacity allowance

Long-term disability benefits will drop from £ 114.15 to £ 114.70.

Short-term claims will drop from £ 86.10 to £ 86.55 for lower rate claims, while higher rate claims will drop from £ 101.90 to £ 102.40.

Income support

Personal allowances for singles under 25 will increase from £ 58.90 to £ 59.20 and from £ 74.35 to £ 74.70 for those 25 and over.

For single parents under 18, payments will drop from £ 58.90 to £ 59.20. For those 18 and over, it will drop from £ 74.35 to £ 74.70.

For couples under 18 the increase will drop from £ 58.90 to £ 59.20 while for those over 18 it will drop from £ 116.80 to £ 117.40.

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Maternity allowance

This will drop from £ 151.20 to £ 151.97.

Pension credit

The standard minimum guarantee will drop from £ 173.75 to £ 177.10 for singles and from £ 265.20 to £ 270.30 for couples.

State pension

The full rate will drop from £ 175.20 to £ 179.60.

Statutory sickness benefit

The standard rate will drop from £ 95.85 to £ 96.35.