Changes to benefits and the state pension in 2023 and beyond

There are a few changes being made to benefits and the state pension this year, so we’ve put together a calendar so you can see at a glance if and when you’ll be affected.

January 2023

More universal credit claimants will face sanctions if they don’t try to increase their earnings

Universal credit claimants who are on low incomes and deemed fit to work are placed into one of two groups:

• light touch
• intensive work search

The group you are placed into is based on the administrative earnings threshold (AET). The AET is the amount of money someone needs to be earning before they no longer need to be actively looking for more or better paid work.

From 30 January 2023, the AET is going up to £617 a month for single people and £988 a month for couples.

People earning less than this will need to show that they’re actively looking for more or better-paid work. They’ll also need to meet with a work coach more often than people who fall into the light-touch group. If they don’t do these things, they could face sanctions. The increase in the AET will see an extra 120,000 people move into the intensive-work-search group.

February 2023

Scotland to introduce the winter heating payment 

From February, the cold weather payment in Scotland will be replaced with the winter heating payment. The new benefit is not dependent on how cold it gets. Instead, any households that qualify will automatically get £50 a year to help with their energy bills.

Spring 2023

Scotland’s child disability living allowance to be phased out

Everyone who receives child disability living allowance in Scotland should be transferred to the Scottish child disability payment by spring of this year.

Cut in wait time for support for mortgage interest

Support for mortgage interest helps homeowners on benefits to cover the interest element of their mortgage payments. At the moment, you normally only qualify if you’ve been claiming benefits for about nine months. But, from spring 2023, this wait time is being cut to three months.

April 2023

Benefits going up

Most benefits, the benefit cap and the state pension are going up by 10.1% from April. You can find a full list showing how much everything is going up by on the government’s website.

The return of the state pension triple lock

The triple lock guarantees the state pension rises each year by the highest of the following three amounts:

• average earnings growth;
• CPI inflation; or
• 5%

When workers returned from furlough in 2021 pushing average earnings up, the triple lock was downgraded to a double lock for the 2022-23 tax year to avoid a record 8% increase in the state pension. However, the triple lock has now been restored meaning – in April 2023 - the basic state pension will rise from £141.85 per week to £156.20 per week and the full state pension will increase from £185.15 to £203.85. 

September 2023

More people will have to start looking for more or better-paid work

From September, people on universal credit who are earning the equivalent of over 15 hours per week at the national living wage but less than full time hours will have to start looking for more or better-paid work.

Winter 2023

Carer’s allowance to be replaced in Scotland

By the end of this year, the Scottish government will have started to replace carer’s allowance with Scottish carer’s assistance. Claimants will continue to receive the twice yearly £245.70 supplements and their monthly payment will increase by about 13%. The new benefit is due to be fully rolled out by spring next year.

Throughout 2023 and 2024

More people moved onto universal credit

More people will be moved from legacy benefits onto universal credit. This process is expected to be completed by 2026, apart from people who get employment and support allowance but don’t get tax credits (they will be switched in 2028).

Extra cost-of-living payments

There will be extra cost-of-living payments for certain groups. Those on means-tested benefits will get payments of £900; those over pension age will get payments of £300; and those who receive disability benefits will get payments of £150.