Increase in benefits for second year

A DEDUCTION in tax credits and a rise in universal credit are among the sweeping changes made to the benefits system from Monday.

The increase marks the second year of benefits rising in line with inflation following a six-year benefits freeze, as the government looks to ease the strain on low-earning households partially caused by the Covid-19 pandemic.

Housing benefit and child benefits are also set to increase with millions set to be affected by the changes.

Universal credit has increased by 0.5 per cent in line with September 2020’s rate of inflation.

The £20-a-week coronavirus uplift is also to continue until September.

Housing benefit is set to increase for approximately three million households, increasing by 30p for under 25s and by 35p for over-25s.

Rates have also increased for couples, dependent children and pensioners.

Child benefit has increased to £21.15-per-week for the first child and £14-per-week for subsequent children.

Pensions credit meanwhile has increased from £173.75 to £177.10.

If you are a carer the benefit will increase further.

Jobseekers’ Allowance has increased from £58.90 to £59.20 for under-25s and from £74.35 to £74.70 for claimants over the age of 25.

State pension changes also came into effect in England and Wales with an increase of 2.5 per cent a week for pensioners.

Those over the age of 66 on the full state pension will now receive £179.60 per week. This amounts to £17.60 a month and £228.80 for the year.