Universal Credit increase coming in weeks – find out how much you'll get
Amber Middleton
Content writerFamilies claiming Universal Credit could receive over £900 extra a year, depending on circumstances
Families claiming Universal Credit will see an increase in their payments within weeks.
The increase was announced by Chancellor Jeremy Hunt in his Autumn Statement last year and means payments could increase by as much as £75 a month for some families.
The boost, which is coming in April, aims to help those who really need it amid the cost of living crisis.
There will also be a payment increase for recipients of Child Benefit, Pension Credit and other benefits payments.
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Why is the change coming in?
Speaking in his Autumn Statement in November, the Chancellor, Jeremy Hunt, announced that all benefits would see an uplift of 6.7%.
This is to fall in line with the September Consumer Price Index (CPI) – a type of inflation to do with the average prices paid by consumers for a representative basket of goods and services.
The new rates are due to come in from April at the start of the new tax year.
How will this affect me?
Around 5.5 million families claiming Universal Credit will see an average rise of £470 a year, or £39 a month, with some receiving an even higher increase, depending on personal circumstances.
For example, if you're a couple claiming with at least one adult 25+ and two children (born on or after April 6, 2017), your benefit will increase from £1,117.98 per month to £1,193.44 per month, giving you an extra £75.46 per month or £905.52 per year.
Here are the proposed Universal Credit payments rises, in line with the 6.7% uplift:
- Single under 25: payments will increase from £292.11 to £311.68 a month
- Single 25 or over: from £368.74 to £393.45 a month
- Joint claimants both under 25: from £458.51 to £489.23 a month
- Joint claimants, one or both 25 or over: from £578.82 to £617.60 a month
Some people who claim Universal Credit will get extra payments due to varying circumstances. Here's how that will change in April:
Child element
If you have kids, you will get extra money through Universal Credit.
- If your first child was born before April 6, 2017, payments will rise from £315 a month to £333.33 a month
- If your first child was born on or after April 6, 2017, or your second child and subsequent children, it will rise from £269.58 a month to £287.92.
- The disabled child element lower rate of Universal Credit will rise from £146.31 a month to £156.11.
- The higher rate of the disabled child rate will rise from £456.89 to £487.58 a month
Limited capability for work
- Limited capability for work: payments will rise from £146.31 a month to £156.11.
- Limited capability for work or work-related activity from £390.06 to £416.19.
Carer element
If you get the carer element of Universal Credit it will rise from £185.86 a month to £198.31.
Work allowance
- Higher work allowance (no housing amount) will rise from £631 a month to £673.
- The lower work allowance (with housing amount) will rise from £379 a month to £404.
Childcare costs element
- This will increase for one child only from £950.92 a month to £1,014.63.
- Or for two or more children, the increase will be from £1,630.15 a month to £1,739.37.
What is Universal Credit?
Universal Credit is an all-in-one benefit for low-income, unemployed and working families that comes in the form of a single monthly payment to help with living costs.
You may be able to get it if you’re on a low income, out of work or you cannot work.
Universal Credit replaces older-style, or legacy benefits, including:
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
- Child Tax Credit
- Working Tax Credit
- Housing Benefit
Who is eligible for Universal Credit?
You may be able to get Universal Credit if you’re on a low income or need help with your living costs.
According to the Government, you could be:
- out of work
- working (including self-employed or part time)
- unable to work, for example because of a health condition
To claim the benefit, you must:
- live in the UK
- be aged 18 or over (there are some exceptions if you’re 16 to 17)
- be under State Pension age
- have £16,000 or less in money, savings and investments
All benefits to increase by 6.7%
And it's not just Universal Credit claimants that will see the boost. This will affect all types of benefit.
Child Benefit
Child Benefit will be increasing in April.
This will be upped from £24 to £25.60 per week for the first child, meaning parents of one child will get an extra £83.20 per year.
For second children onwards, you currently receive £15.90 per child. This will be increased to £16.95 per additional child, per week.
Parents of two children will get an extra £137.80 per year.
Housing benefit
Housing benefit will also go up. How much it will increase by depends on circumstances.
If you are a single-person claimant:
- Aged under 25, it will increase from £67.20 to £71.70
- For any age on main phase ESA, the increase is expected to go from £84.80 to £90.50
- If you're aged between 25 and state pension credit age, the amount is expected to increase from £84.80 to £90.50
- For those of pension age, the amount is expected to increase from £217 to £235.20
For single parents
- If you're under 18, the benefit will increase from £67.20 to £71.70
- If you're any age claiming main phase ESA, the payment will go from £84.80 to £90.50
- If you're between 18 and state pension credit age, it will increase from £84.80 to £90.50
- For those who have reached state pension, the rate is expected to increase from £217 to £235.20
If you're in a couple
- If both are under 18, the amount will increase from £101.50 to £108.30
- If one or both are between 18 and state pension credit age, the rate will increase from £133.30 to £142.25
- For any age claiming main phase ESA, the rate will increase from £133.30 to £142.25
- If one or both have reached pension age, it will increase from £324.70 to £352
If you have a child or other dependent, the rate is expected to increase from £77.78 to £83.24.
More money help
For more money advice, visit our Cost of Living hub for more money articles.
There are guides on the cost of living payment, Household Support Fund and any benefits and entitlements you could be owed.
Plus, discover Money Saving Expert Martin Lewis's top tips on everything from switching bank accounts, energy bills, unmissable deals and more.
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