Thousands of benefits claimants will receive a boost to their income within months as payments are due to rise in line with inflation.
It was announced in Chancellor Jeremy Hunt’s Autumn Statement last month that benefits will be uprated by September’s inflation figure of 6.7% from April next year.
The move will mean millions of claimants will benefit from an average income boost of £470 when the new rates take effect in just four months’ time.
Read more: HMRC urges ‘claim today’ as thousands missing out on £1,248 handout
The government said it had opted to increase the rate by September’s inflation figure instead of October’s lower rate of 4.6% after acknowledging that households are facing continued cost of living pressures.
HM Revenue and Customs (HMRC) has now announced its proposed new payment rates for Child Benefit, Tax Credits and Guardian’s Allowance from April. These rates are subject to Parliamentary approval and will apply in the new tax year from April 2024 to April 2025.
Listed are all of the proposed benefits increases from HMRC due to take effect next year.
Working Tax Credits
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Basic element – rising from £2,280 per year to £2,435
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Couple and lone parent element – rising from £2,340 per year to £2,500
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30 hour element – rising from £950 per year to £1,015
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Disabled worker element – rising from £3,685 per year to £3,935
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Severe disability element – rising from £1,595 per year to £1,705
Childcare element of Working Tax Credit
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Maximum eligible cost per week for one child – remaining at £175 per week
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Maximum eligible cost per week for two or more children – remaining at £300 per week
Child Tax Credits
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Child Tax Credit family element – remaining at £545 per year
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Child element- rising from £3,235 to £3,455 per year
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Disability element
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Disabled child rate -r rising from £3,905 to £4,170 per year
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Severely disabled child rate – rising from £1,575 to £1,680 per year
Tax credits income thresholds and withdrawal rates
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Income threshold – rising from £7,455 to £7,955
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Threshold for those entitled to Child Tax Credit only- rising from £18,725 to £19,995
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Income rise disregard – remaining at £2,500
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Income fall disregard – remaining at £2,500
Child Benefit
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Eldest or only child – rising from £24.00 per week to £25.60
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Other children- rising from £15.90 per week to £16.95
Guardian’s Allowance
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Rising from £20.40 per week to £21.75
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