People living in England, Scotland and Wales and claiming disability benefits from the Scottish Department of Work and Pensions and Social Security are eligible for a tax-free pay increase of 10.1 per cent later this year. The annual update means that most benefits and the state pension will increase in April.

Those claiming Personal Independence Pay, Adult Disability Pay, Disability Living Allowance and Child Disability Pay could see payments of between £1,398 and £8,983 during the 2023/24 tax year, which would be completely free. of taxes. As the threshold for the standard personal tax allowance has been frozen at £12,570 for the new tax year, the new tax allowance will provide much-needed financial relief for those claiming disability benefits.

If disability payments were made subject to income tax rules, it would leave claimants with just £3,587 remaining on their allowance, reports Lancs.LIve. Those receiving Disability Living Allowance, Child Disability Payments, Personal Independence Payments or Adult Disability Payment are among those affected.

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However, State Pension income is taxable but is generally paid without deducting any tax and you only pay Income Tax once your total annual income exceeds your Personal Allowance threshold (£12,570). The improvement in April is expected to push another 500,000 seniors with state pensions into the tax net, according to former pensions minister Sir Steve Webb.

That is not the case for people claiming any of the disability benefits. Currently, claimants can receive between £97.80 and £627.60 each pay period.

It means that, from April, there will be a monthly increase of up to £63.40 on the way for some of the most vulnerable households in the country. However, it is important to note that these figures represent the minimum and maximum possible award rates.


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