Money Matters: Benefits and wages to rise next month - here's how much more you could get

The new financial year kicks off in a few weeks’ time, when wages and benefits typically go up.

It should mean a welcome boost to many people’s income, including those currently on parental leave or sick pay.

But remember that the exact amount in your pocket will depend on a range of factors including how much you work, your tax bracket, age and what other help you may be entitled to based on your personal circumstances.

It’s also important to remember that council tax and other expenses such as water and childcare bills may be going up at the same time, so you’ll need to consider these before working out a new monthly budget.

Let’s start with minimum wage. The hourly minimum wage for those over 21 is rising from £11.44 to £12.21, meaning a potential pre-tax increase of around £123 a month for someone working 37 hours a week.

The rate for 18 to 20-year-olds is rising from £8.60 to £10 and for under-18s and apprentices it’s going up from £6.40 to £7.55.

Meanwhile benefits are going up by 1.7 per cent. For those claiming Universal Credit, the standard monthly allowance is rising from £311.68 to £316.98 for single claimants under 25 and from £393.45 to £400.14 for those over 25.

For couples, the monthly amounts are going up from £489.23 to £497.55 (under-25s) and £617.60 to £628.10 (over-25).

The amounts per child (usually capped at two children if born after 2017) is also rising, as are the carer element, disabled child element and the amount you get if you’re deemed to have ‘limited capability for work’.

The childcare costs cap is rising to £1,031.88 a month for one child, or £1,768.94 for two or more.

The work allowance (the amount you’re allowed to earn before you start losing benefits) is also going up. The amount depends on whether you also get help with rent.

Legacy benefits will increase by the same percentages if you haven’t yet switched over to UC, as will non-means tested disability benefits such as Personal Independence Payments (PIP) and Disability Living Allowance (DLA).

Turning to pension – the state pension rates are going up by 4.1 per cent.

It means the weekly amount for those on the full new state pension will go up from £221.20 to £230.25.

For those on the old state pension, who reached retirement age before April 2016, the weekly amount is rising from £169.50 to £176.45.

Parents on maternity, paternity, adoption or shared parental leave will see their weekly entitlement rise from £184.03 to £187.18. Remember, these are the statutory amounts but you could get more than this depending on your workplace’s individual policy.

Child benefit is going up from £25.60 to £26.05 a week for the first child, and from £16.95 to £17.25 a week for subsequent children.

Finally, statutory sick pay is rising from £116.75 to £118.75 a week.

If you need help understanding your benefits, making a claim or lodging an appeal, you can contact Citizens Advice. Wrekin Housing Group customers can also contact our Money Matters team.