Full list of how DWP benefit payments including Universal Credit and PIP could go up by next year

The inflation rate for September was confirmed today, meaning DWP benefits, including the state pension, will rise by 1.7% in April 2024 - we explain all the changes

Benefit payments are set to increase by 1.7% following the confirmation of September's inflation rate today. The September inflation figure is typically used to determine the annual uprating of certain welfare payments, including Universal Credit, with the increase applied the subsequent April.

Chancellor Rachel Reeves will officially confirm the rise in her Autumn Budget on October 30. In a BBC interview in November 2023, Rachel Reeves expressed her belief that benefits should continue to rise in line with the inflation rate that is traditional, the September inflation".

She added: "If you pick and choose from year to year which inflation number is the cheapest thing to do, then what you see is the gradual erosion of people's incomes."

It's important to note that the exact date when the increase takes effect varies depending on the benefit being claimed. The amount that can be deducted from benefit payments through sanctions could also increase.

Benefits rose by 6.7% this April, following a 10.1% increase the previous year after inflation surged into double digits. This comes as the state pension is set to rise by 4.1% after a key figure used to determine the triple lock was confirmed this week, reports the Mirror.

The triple lock guarantees the state pension rises each April by the highest out of inflation (using the previous September inflation figure), wages (average growth between May and July) or 2.5% - whichever is highest.

Last month, the initial estimate for wage growth was set at 4%, however, today it has been revised by the Office for National Statistics (ONS) to 4.1%. With inflation running higher, it is expected that this more modest wage growth will become a critical metric for the triple lock adjustment.

Rachel Reeves is slated to confirm these details in the Autumn Budget. This update comes as the Department for Work and Pensions (DWP) released figures showing over one million households are not receiving a collective £3 billion in "unfulfilled" benefits. Those affected may already be benefit recipients who now qualify for increased payments due to changes in their circumstances since making their initial claim.

This might include an individual with a disability who has seen their condition deteriorate, potentially qualifying them for increased benefits, or a Universal Credit claimant who hasn’t reported a rent hike.

Out of all the benefits subjected to uprating, nine must legally increase with inflation every April, mandated by the DWP. While benefits such as Universal Credit typically rise too, this requires the sanction of Parliament.

The specified benefits that must legislatively adjust with inflation include:

• Personal Independence Payment (PIP)
• Disability Living Allowance
• Attendance Allowance
• Incapacity Benefit
• Severe Disablement Allowance
• Industrial Injuries Benefit
• Carer's Allowance
• Additional State Pension
• Guardian's Allowance