Full list of benefits not rising in April 2023 – from Universal Credit childcare to Local Housing Allowance
From April, many people will see a rise in certain benefits – including Universal Credit – as they go up by 10.1%, the cost of inflation.
In the cost of living crisis, benefits and financial help of all kinds are a lifeline for so many as bills skyrocket.
But while many benefits are due to go up, not all will – there are several that stay the same.
So which benefits are not rising in April 2023 and what impact is that likely to have?
Here’s what you need to know.
Universal Credit childcare costs
There are major changes to childcare across the board, with the government bringing in 30 hours of free childcare provision for all children over the age of nine months (up to age five). This is being introduced gradually.
For those on Universal Credit, people are sometimes able to claim back up to 85% of their childcare costs, depending on circumstances. This will remain at a maximum of £646.35 for one child and £1108.04 for two.
But the good news is that from the summer, these thresholds will rise dramatically – to £1,108 and £1,630. Plus, for the first time, some of this will be paid upfront, rather than parents having to pay and claim it back.
Local Housing Allowance
The Local Housing Allowance (LHA) is the rate to calculate the Housing Benefit paid to eligible people renting from private landlords. It uses rental information from letting agents, landlords, tenants and other sources to work out average rents paid for properties depending on the number of bedrooms.
Housing Benefit is being replaced by Universal Credit, so the LHA rate also applies to that.
It is based on what people are paying to rent in a certain area and you can calculate the amount in your area here.
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These rates are not changing in April 2023 and haven’t done since 2020. But Housing Benefit and Universal Credit will rise to help with housing costs.
Bereavement Support Payments
Bereavement Support Payment is paid out if your partner dies as a result of an accident at work (or a disease caused by work), provided you were married or living together and you are under State Pension age.
Your partner must have paid enough National Insurance contributions. It’s not means-tested, but you must claim within three months of your partner’s death to get the full amount.
The payment is remaining at £2,500 (standard rate) and £3,500 (higher rate).
The higher rate is paid if you were receiving child benefit when your partner died.
Child Dependency Increases
Child Dependency Increases are sometimes paid with the following benefits:
- State Pension
- Widowed Mothers/Parents Allowance
- Short-term Incapacity benefit – higher rate or over state pension age
- Long-term Incapacity Benefit
- Carer’s Allowance
- Severe Disablement Allowance
- Unemployability Supplement (UnSupp)
The amount will remain at £11.35 a week.
Working Tax Credit – childcare element
The childcare element of Working Tax Credit will remain at £175 for one child and £300 for two. These are the maximum amounts you can claim for 70% of childcare costs.
However, as detailed above, other childcare help is incoming.
Child Tax Credit – family element
The family element of Child Tax Credit will remain at a maximum of £545 a year.
This is paid to eligible low income households with children.
Child Benefit Income Tax threshold
The Child Benefit tax threshold is remaining at £50,000 – so any households where either partner earns £50,000 or more may have to pay the High Income Child Benefit charge.
Essentially, this means you pay back some or all of the benefit.
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