28 October 2021

Autumn Budget 2021 announcements

Here we provide a brief round-up of some of the Chancellor’s announcements in his Budget on 27 October 2021

Universal Credit

National Minimum Wage

Rates for the national living wage (and national minimum wage) have been uprated. The baseline rate, for those 23 and over, will increase from £8.91 per hour to £9.50 per hour from 1 April 2022.

The other NMW rates will be increased from 1 April 2022:

Child Benefit

It was confirmed that in May 2021 the government legislated to ensure all child benefit claimants with children in their last year of full time non-advanced education would be paid child benefit up to 31 August, if exam cancellations due to COVID-19 would have otherwise prevented them from being entitled to three months of child benefit payments

New style Employment Support Allowance

The current easement which allows new style ESA to be claimed by those affected by Covid-19 from day one of absence from work (instead of day 8, under normal rules) is extended until 24 March 2022

Arrivals from Afghanistan

The Government confirmed day 1 access to benefits for those arriving to the UK from Afghanistan –individuals coming to the UK from Afghanistan, including those under the Home Office resettlement schemes, are eligible for Child Benefit and DWP income related benefits from their first day in the UK

Pension Credit

The Government’s plans to create a new housing element of Pension Credit, replacing pensioner Housing Benefit, are now intended to take effect in 2025.

The full Autumn 2021 Budget documents are available on the GOV.UK website