Universal credit, jobseeker's allowance, housing benefit, and child tax credit are all set to rise on Wednesday (April 1).
The increase, which follows years of stagnation, will benefit about 2.5m people on universal credit and millions more on legacy benefits, the government said.
The move was first announced last April with the increase based on September's inflation figures of 1.7%, the Mirror reports.
Since the announcement the coronavirus outbreak has prompted additional changes, including a £20-a-week boost.
Which benefits are rising?
Universal credit is one of the benefits rising along with legacy benefits for working-age people.
These include jobseeker's allowance, employment and support allowance, income support, housing benefit, child tax credits, working tax credits and child benefit.
Pensions, maternity pay, and disability benefits will also rise – in some cases by far more than 1.7% – and were never included in the freeze.
How much are benefits going up by?
Working-age benefits will rise by 1.7%. The increase means someone on £500 a month in benefits will get an extra £8.50.
For people on universal credit – which wraps six older benefits together – the overall rise could be worth more.
Those claiming the state pension will see their payments leap at more than double the speed of those on working-age benefits.
The state pension is set to rise by 3.9% in April – adding £5.05 a week to the ‘old’ basic state pension and £6.60 a week to the ‘new’ state pension.
What about the coronavirus changes?
As well as the planned rise in universal credit there have been extra measures brought in to help people struggling as a result of coronavirus. These benefits will kick in on April 6.
The standard allowance will be raised by £20 a week for the next 12 months.
WATCH: How to get extra cash to cope with coronavirus
You do not need to do anything to receive this. If you're eligible it will be applied automatically.
Working Tax Credit will be raised by the same amount. At present the basic amount is up to £1,960 a year. Additional elements paid on top include up to £810 for those working at least 30 hours a week, up to £2,010 a year for single parents and couples, and up to £3,165 for disabled people.
The basic element will increase by £20 per week on top of the inflation uprating. This will apply to existing working tax credit claimants and will be in place for one year.
The minimum income floor will also be suspended from April 6 until further notice.
