Protecting the Triple Lock and stopping cuts to benefits
The Government must continue to protect the triple lock and stop cuts to benefits.
The government released the 2023 Autumn Statement which outlines changes to benefits and other financial schemes. We've summarised some of the main changes so you can work out how the budget might affect you.
Yes – benefit rates will increase in line with inflation. This has been measured by September CPI (Consumer Price Index) and means an increase of 6.7% this year. These increases will come into effect from April 2024.
Our handy benefits calculator can help you work out if you're missing out on money you should be getting. It only takes a few minutes to find out.
The State Pension will be increased by 8.5% in April 2024, in line with average wage increase. The Pension Credit standard minimum guarantee will also increase by 8.5%.
The pension triple lock was reintroduced in April 2023 after being suspended during the coronavirus pandemic. The triple lock is a commitment from the government to increase the State Pension in line with whichever of the following 3 things is highest:
Yes – from April 2024 Local Housing Allowance rates will be increased to 30% of local market rents. This will last for one year, the rates will be frozen again from April 2025.
Local Housing Allowance rates are used to calculate how much housing benefit and Universal Credit people receive in order to pay private rent in the UK. They’re based on how much private renters are paying in your local area, so this change means that people claiming housing benefit or Universal Credit will receive enough to pay 30% of their local market rent rate.
Yes – National Living Wage, also known as legal minimum wage, will increase from £10.42 to £11.44 an hour from April 2024. Also, the threshold will be lowered to include people aged 21 and over. See the table below to find out more:
Age |
Minimum hourly wage for 2023/24 |
Minimum hourly wage for 2024/25 |
Apprentices and people aged 16-17 |
£5.28 |
£6.40 |
People aged 18-20 |
£7.49 |
£8.60 |
People aged 21-22 |
£10.18 |
£11.44 |
People aged 23 and over |
£10.42 |
£11.44 |
The autumn budget has announced a cut to National Insurance (NI) rates. This means some people’s take-home pay will increase. The changes vary depending on which NI class you’re in:
Class of NI |
Who does this affect? |
What are the changes? |
From when? |
Class 1 |
Employees under State Pension age earning more than £242 a week |
Reduced from 12% to 10% |
6 January 2024 |
Class 2 |
Self-employed people earning more than £12,570 a year |
Abolished |
6 April 2024 |
Class 4 |
Self-employed people earning more than £12,570 a year |
Reduced from 9% to 8% |
6 April 2024 |
The government have stated that self-employed people who don’t need to pay Class 2 contributions anymore will continue to have access to contributory benefits, including the State Pension.
There will be more details on these changes in the new year.
The Back to Work Plan is a package of schemes that aim to help people with disabilities or long-term health conditions look for and stay in work. The government will invest £1.3 billion into the scheme over the next 5 years.
As part of this plan, the government has introduced sanctions that mean if you’re classed as able to work, but refuse to find work, then your benefits can be stopped and you could lose access to other things, such as free prescriptions and legal aid.
Other changes include:
The Work Capability Assessment is going to be reformed to reflect the possibility of working from home after the coronavirus pandemic. The reforms will affect the activities and descriptors for new claims in the UK, and will come into effect in 2025.
The government will be reforming the fit note process to support more people in getting back to work after a period of illness. They’ll be running trials in a small number of areas in England and will look at wider reforms for the fit note process in 2024.
We offer support through our free advice line on 0800 678 1602. Lines are open 8am-7pm, 365 days a year. We also have specialist advisers at over 120 local Age UKs.
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