UK benefits 2021/22: changes to universal credit, state pension, PIP and more explained

Several changes have been made to the benefits system (Getty Images)

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

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.

Here are the changes which came into force on April 12.

Universal credit

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

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

You can find out exactly how much your universal credit allowance has increased here.

Housing benefit

Housing benefit is also 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.

The increase in rates can be read here.

Child benefit

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

This represents an increase of 10p and 5p respectively.

Pensions credit

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

If you are a carer the benefit will increase further.

Personal Independence Payments (PIP)

The PIP daily living component has risen by 45p (£89.60) for enhanced claimants and by 30p (£60) for standard claimants.

Jobseekers’ allowance

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.

Disability living allowance

The disability living allowance is increasing by 45p to £89.60.

Incapacity benefit

Long-term incapacity claimants will see an increase of £114.15 to £114.70 to their benefits.

Short term claimants have risen from £86.10 to £86.55.

State pension

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

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