Benefit and tax rates change every year. This year, from April 2023, millions of carers receiving certain benefits will have seen an increase in the amount they are receiving, as they rose in line with the 10.1% inflation rate, helping to combat the rising cost of living.
This includes Carer’s Allowance and disability benefits such as the Personal Independence Payment (PIP), Disability Living Allowance, and Attendance Allowance which are claimed by millions of people to help with the extra costs of physical and mental health conditions.
Carers and Disability benefits
Carer’s Allowance is a benefit given to one person looking after another for at least 35 hours a week. In April 2023 the weekly rate increased to £76.75.
Disability Living Allowance (DLA), Personal Independence Payment (PIP) and Attendance Allowance (AA) rates also increased. The rates for these benefits are all the same, but which benefit you receive will depend on your age.
The enhanced daily living component weekly rate also increased to £101.75. With the standard rate also increasing to £68.10. The mobility enhanced and standard rates also rose from to £71 for the enhanced rate and to £26.90 for the standard rate.
Tax, Tax Credits and other benefits
The assessment year for both tax and tax credits runs from 6 April one year, to April 5 the next year. This is known as a ‘tax year’. Tax rates are usually increased on the first day of the tax year, which, for this year, was 6 April 2023.
Tax on income from paid employment or self-employed earnings is charged at three rates: the basic rate, the higher rate and the additional rate. For 2022/23 these three rates were 20%, 40% and 45% respectively. These rates remain unchanged from 2021/22 and will remain frozen for the year ahead.
If you are already claiming benefits or tax credits, you will automatically be contacted about changes in rates when this affects your entitlement.
Online Help and Advice
Visit our online support section where we have provided advice and guidance on a range of relevant topics to help you in your caring role.