Universal Credit and other benefits including Personal Independence Payment (PIP) and Carer’s Allowance are set to increase by 1.7% from April 7
Universal Credit is set to rise from next month – however claimants will not see their payments go up straight away.
Universal Credit and other benefits including Personal Independence Payment (PIP) and Carer’s Allowance are set to increase by 1.7% from April 7. The state pension will rise by a bigger 4.1% from the same date, because the increase is dictated by the triple lock, which sees the state pension rise by whichever is biggest out of inflation, wage growth or 2.5%.
Although the increase will be introduced from April, claimants will not see the extra cash in their monthly payment until May – or even June.
Universal Credit is paid seven days after a four-week “assessment period” – this is when the Department for Work and Pensions (DWP) looks at your financial situation to see how much Universal Credit you will get. So to get the new rates, your assessment period needs to start after April 7 and you will see the rise in your May Universal Credit payment. If your assessment period starts before – so, for example, on April 1 – then the entire period will be calculated under the old rates and you will only see the rise when your June payment comes in.
The DWP has confirmed in previous years that backpay will be awarded for those yet to see the increase, as the delay is the standard annual protocol for applying new rises.
Universal Credit is made up of a standard allowance which is based on your age and if you’re claiming as a single person, or in a couple. The standard allowance is the basic amount you get before any additional elements – for example, if you have children or are unable to work due to illness – or any deductions are taken into account.
More than six million people in the UK claim the benefit, and more people will start to claim over the coming 12 months as the DWP continues to move people over from legacy benefits. Here is how much the Universal Credit standard allowance is rising by:
- Single under 25: £311.68 a month to £316.98 a month
- Single 25 or over: £393.45 a month to £400.14 a month
- Joint claimants both under 25: £489.23 a month to £497.55 a month
- Joint claimants, one or both 25 or over: £617.60 a month to £628.10 a month