Universal Credit and other benefits, including Personal Independence Payment (PIP) and Carer’s Allowance, are set to increase by 1.7% from April 7 – with state pension payments rising by 4.1%
Universal Credit is set to rise this month, however due to Department for Work and Pension (DWP) rules, 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%.
However, claimants will not see a rise in their April Universal Credit payment. This is due to the DWP’s assessment period, which is when the benefits department looks at your financial situation to see how much Universal Credit you will get. Normally, Universal Credit is paid seven days after the four week assessment period.
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This is because there is no set amount for how much Universal Credit you can get, as the total you can be paid depends on your personal circumstances, which include things like age, whether you live in a couple, have a disability, and whether you have children. You can also work while claiming Universal Credit – but the more you earn the less you get. All this means is that the amount you get paid can change from month to month.
So to get the new rates, your assessment period needs to start after April 7. If this is the case, you will then see your benefits 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.
Turn2us benefits expert Halide Kalfaoglu said in an example: “John’s assessment period starts on March 26. It runs for a complete calendar month to April 25, with a new assessment period beginning on April 26.
“Universal Credit payments are paid a week after the last date of each assessment period, so John will receive his payment on May 2. But as this assessment period starts before April 7, the new rates will not take effect and John will have to wait until his next assessment period (April 26 to May 25) to get the new rate on June 1.”
They added: “Rachel’s assessment period starts on April 12. It runs for a complete calendar month to May 11, with a new assessment period beginning on May 12.
“Universal Credit payments are paid a week after the last date of each assessment period, so Rachel will receive her payment on May 18. Rachel’s assessment period starts after April 7, so the new rates will take effect and she will receive increased Universal Credit payment on May 18.”
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.
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