Autumn statement 2023 and your finances | Tenant news

While the government’s recent announcements on taxes and spending, as part of its annual autumn statement, were good news for pensioners and living wage workers, not everyone will be better off.

Pensioners pay rise

The Chancellor Jeremy Hunt announced that the state pension ‘triple lock’ will increase by 8.5% from April 2024. The 'triple lock' is a commitment to increase state pensions by whichever is highest of average earnings growth, Consumer Price Index inflation, or 2.5%.

From April 2024, under the new state pension, retirees will receive £221.20 per week, or £11,502.04 per year, up from the current £203.85 per week.

People on the 'old' state pension (paid to those who reached state pension age before 6 April 2016) will see an increase from £156.20 per week to £169.50 per week (£8,814 per year).

Universal Credit and working age benefits

People who receive Universal Credit will see their payments increase by 6.7% from April next year.

For example, if you’re a single person over 25 currently claiming Universal Credit, you’ll get an extra £24.71 a month, meaning your allowance will rise from £368.74 to £393.45 a month, according to figures by MoneySavingExpert.com.

Mr. Hunt also announced an increase in working age benefits, which include Jobseeker’s Allowance and Employment and Support Allowance. Rates will rise by 6.7% next year, to be in line with recent inflation figures.

Disability benefits limited

There will be tougher rules around the government’s Work Capability Assessment, which is an assessment used to determine if people are well enough to work.

This means that people who are unable or have limited capacity to work due to disability or a long-term health condition may lose their entitlement to extra financial support.

According to the government, this change could impact around 370,000 disabled people.

National Living Wage increase

Government has increased the National Living Wage from £10.42 per hour to £11.44 per hour from April next year.

The National Living Wage – which is higher than the National Minimum Wage – was formerly for workers aged 23 and over. But from April 2024, the age bracket has been expanded to include workers aged 21 and 22.