Autumn Statement: State pension confirmed to rise by 8.5% from April 2024 – while some benefits will go up by 6.7%

There had been speculation that the Government would choose to increase the state pension and benefits by a lower amount (for example, by using October's lower inflation figure as the benchmark for benefits rises instead of September's, or excluding bonuses from the average earnings figure in the pension triple lock calculation).

However, during his Autumn Statement, Chancellor Jeremy Hunt confirmed the full expected increases for both the state pension and most benefits. Mr Hunt also announced a host of other measures, including an increase to local housing allowance, a rise in the national minimum wage and changes to Universal Credit sanctions. Below we explain everything you need to know. 

For further info, see our State pension guide for details on how it works, what you get and how to boost it. You can also do a 10-minute benefits check to find out if you're missing any state support.

The state pension and Pension Credit will rise by 8.5% from April 2024

Since 2010, increases to the state pension have typically been based on the so-called 'triple lock' commitment, which guarantees that payments rise in line with the largest of September's Consumer Prices Index (CPI) inflation measure, average wage growth between May and July (including bonuses), or 2.5%. Any increase usually comes into effect the following April. 

As September's CPI was 6.7%, this means state pensions will go up by average earnings growth instead, which was a higher 8.5% – meaning more than 12 million pensioners will see their state pension increase by up to £17.35 a week. Pension Credit will also be uprated by 8.5%. See the tables below for a more detailed pensions breakdown. 

And here's how the state pension will increase for those on the old basic state pension (you'll be on this if you reached state pension age before April 2016): 

In April this year, the state pension rose by 10.1% as the triple lock returned following its suspension in the 2022/23 tax year. In 2022/23, the increase was instead based on the higher of 2.5% or CPI inflation – known as the 'double lock'. Average earnings were removed from the equation after a spike caused by workers coming off furlough and pandemic-related restrictions easing.

Millions of households will see benefit payments rise by 6.7% from April 2024

From April 2024, most benefits and Tax Credits in England, Northern Ireland, Scotland and Wales will increase by 6.7%, in line with September's CPI measure of inflation. This would mean, for example:

• If you're a single person over 25 currently claiming Universal Credit, you'll get an extra £24.71 a month, as your allowance will rise from £368.74 a month to £393.45 a month. 

• If you're a couple or single parent currently claiming Tax Credits, you'll get an extra £156.80 a year, as your allowance will rise from £2,339.65 a year to £2,496.45 a year.

The overall benefits cap (the maximum amount you can get in benefits) will NOT be uplifted by 6.7% in April next year and will therefore remain at its current level which is £423.46 if you're a couple or single parent and £283.71 if you're a single adult. 

Note that certain benefits are devolved in Scotland, while all benefits are a devolved matter in Northern Ireland. The Northern Irish Government told us it plans to work with the UK Government to uprate all relevant social security benefits and the local housing allowance by 6.7%. The Scottish Government has also confirmed any devolved benefits will also rise by the same amount.

On Universal Credit? You could face harsher sanctions if you fail to attend job fairs and interviews

Under planned new measures, the Government will track the attendance of each Universal Credit claimant at job fairs and interviews that have been organised by Jobcentres. 

The 'Restart' scheme, which includes CV and interview skills, coaching and training sessions, will be extended for people who have not found a job after six months of claiming Universal Credit – shortened from the current nine months. 

In addition, if you're on Universal Credit (and no other benefits) and you've had your payments reduced through a sanction for more than six months, your claim will be closed and your benefits will be stopped. This means you'll also lose access to related benefits, such as free prescriptions and legal aid.

We've asked the Government when these rules will take effect and we will update this story when we know more.

Renting privately and claiming housing benefits? You should get more support

Private renters who claim Housing Benefit, or the housing element of Universal Credit, will get more help with their housing costs from April next year, as the local housing allowance (LHA) will be uprated to reflect current rental prices.

LHA is the rate used to set the maximum amount of either Housing Benefit or the housing element of Universal Credit that a private tenant can claim in England. The maximum amount varies by area and number of people per household.

It's meant to ensure that those eligible can afford the cheapest 30% of suitable private rental properties in their area, but has been frozen since 2020 – meaning it hasn't kept up with rapidly rising private rental costs. See our Rent increase rights guide for what you can do if your rent is being put up.