The United Kingdom government has been trying to fill the gap between the household based on their income or financial status. The Department of Wage and Pension has stated that in April 2024, a hike of 6.7% will be seen in the Universal Credit.
Nearly 5.5 trillion people will benefit under this DWP Pensions scheme and the department has announced £470 additional amount. This hike is provided under Universal Credit for households. There are many other schemes run under this department which include state pension and National Living Wage.
As the chancellor informed, the new payments will begin anytime from the first working week after April 8, 2024. Moreover, their studies also revealed that this payment will take time to see an increase, and it will be increased by May or June. It was also revealed that the payments for other benefits like pension credit, state pension payment, widow’s payment, etc. will also see an increase.
£900 Raise Approved for Pensioners in United Kingdom
Beginning from April 8, 2024, the state pension has been increased for the eligible people. This increment is done after keeping the effect of the previous year’s inflation in September in view. This increased number will follow the triple deadlock formula.
Jeremy Hunt, Chancellor, has announced that the payments will see a tremendous increase, and they will increase by 8.5%, which is a good sign. The triple lock formula has helped in reducing the rich-poor divide in the country and the levels of poverty have declined. The DWP Pensions is decided based on different parameters like inflation, earnings of people, etc.
National Living Wage Increase for Millions of Workers
The Department of Wage and Pension has focused on every possible section. Various laws made to help needy people have shown good signs of reducing poverty. The National Living Wage amount has also increased for the people who are eligible. For the very first time, this increment is available to those who are only 21 years old.
Based on the various factors determining the increase, there is an increase in the living wage from £10.42 to £11.44 per hour. Under the National Living Wage, more than 2.7 million people will benefit. The objective is to increase this amount to minimize the gap and avoid the culture of low pay which is further affecting the lives of people. This policy has reduced half of the low pay problems since 2010.
New State Pensions Rate for 2024-25
The new weekly state pension rate will be £221.20 which was earlier £203.85. Based on this, the monthly amount will be £884.80 and if we calculate the yearly amount, it will be £11,502, which was earlier £902. Thus, we can see that the new state pension rate under the department of wage and pension has been increased.
State Pension Beneficiaries Transitional Rates
In this section, we will discuss the transitional rates under state pension benefits. You can judge the transition that took place in the payments.
- The highest rate under the state pension is £28.40, raised from £26.60. This means that change of up to £1.80 was there.
- The medium rate was up by £1.10 which means it was raised up to £18.20 (from £17.10).
- The lowest rate had seen a hike of £0.55 which means the amount raised from £9.10 (from £8.55).
Benefits from National Living Wage Increase
The workers or labor force will get an increase under this policy, and it will result in a better standard of life. Now the labor force who is only 21 years old can also get the advantages. People can use the money for any additional expenditure which they could not do earlier.
The advantage of these state pensions will have two-way benefits. It will impact the economy positively as the more the income, the more the consumption and savings will be. These savings will further lead to investment in the economy. Hence, ultimately, it will raise the economic status of the country.
Category Wise Basic Old Pension
There are different categories for old pension rates. These are:
- Category A and B got £169.50.
- The lower category (B) got £101.55.
- Category C and D also got £101.55.
- Maximum Additional benefit was £218.39.