Around 5.5 million families can expect an income boost in April as the Universal Credit payment rate rises by 6.7 percent.
Chancellor Jeremy Hunt announced the plans during November’s Autumn Statement, and the uplift could see some families receive hundreds of pounds more a year.
Universal Credit is a benefit distributed by the Department of Work and Pensions (DWP) to people who are on a low income or are unemployed and need help with their living costs.
How much Universal Credit a person receives depends on their circumstance, such as age, whether they live in a couple, and whether they have children.
Each eligible household receives a ‘standard allowance,’ and additional payments may be provided on top of this to assist with other associated costs.
Universal Credit 2024/25 proposed rates
By honouring Mr Hunt’s pledge to raise Universal Credit rates in line with September 2023’s inflation, the standard allowances should increase as follows:
- Single under 25: £311.68 (up from £292.11 per month)
- Single 25 or over: £393.45 (up from £368.74 per month)
- Joint claimants both under 25: £489.23 (up from £458.51 per month)
- Joint claimants, one or both 25 or over: £617.60 (up from £578.82 per month)
Extra amounts for first and second children
Claimants with children can be entitled to additional payments, and the rate varies depending on how many children a person might have.
Most claimants only get extra payments for up to two children, but those whose children were born before April 6, 2017, or who were claiming for three or more children before that date can get payments for additional children.
First child payments
- First-child payments to parents with children born before April 6, 2017, will increase to £333.33 (up from £315)
- Payments for children born after April 2017 and second children/additional children will increase to £287.92 (up from £269.58)
Disabled child payments
- The lower rate for parents of disabled children will increase to £156.11 (up from £146.31)
- The higher rate for severely disabled children will increase to £487.58 (up from £456.89).
Claimants with disabilities or health conditions
Britons with certain disabilities or health conditions that limit their ability to work can be eligible for further payments through the Limited Capability to Work component, on top of their standard Universal Credit.
Those eligible for the Limited Capability for Work rate will see payments increase from £146.31 to £156.11.
The Limited Capability for Work and Work-Related Activity amount will rise from £390.06 to £416.19.
The carer element will see an increase from £185.86 to £198.31.
Work allowance
- The higher work allowance (no housing amount) is due to rise from £631 a month to £673 a month
- The lower work allowance (with housing amount) will rise from £379 a month to £404 a month
Childcare costs element
- The maximum childcare cost element for one child will rise from £950.92 a month to £1,014.63 a month
- The maximum for two or more children will rise from £1,630.15 a month to £1,739.37 a month
The full list explaining each increase can be found here, including extra amounts. The new rates will come into effect from April 2024.
