The DWP has announced that various segments of Universal Credit will be increased in line with inflation during 2025 – retaining the spending power of the benefits in real terms
Universal Credit – one of the most widespread benefits currently distributed by the DWP – is claimed by millions of people in the UK.
This is largely intentional, as many other benefits are gradually being phased out and claimants are being transitioned from other benefits to Universal Credit. This includes working-age individuals, disabled people and pensioners.
This year, the DWP has announced that various segments of Universal Credit will be adjusted in line with inflation, maintaining the real-term purchasing power of the benefits and increasing the cash amount.
From April, Universal Credit payments will rise by up to £465 a year, depending on your circumstances and the current level of payout. If you’re single and under 25, Universal Credit will be paid at £316.98 per month, an increase from the current £311.68.
Those who are single and over 25 will receive £400.14 per month, up from £393.45, while couples under 25 will get £497.55, up from £489.23, and couples over 25 will receive £628.10, up from £617.60, an increase of £126 per year. However, the most significant change is the increase to Universal Credit childcare costs.
This has risen from £1014.63 for a single child to £1031.88, or £1,739.37, increased to £1,768.94 for two or more children, an increase of £354 per year. But to claim the childcare costs money, parents need to be employed, reports the Express.
The Department for Work and Pensions (DWP) has outlined the process for claiming childcare costs through Universal Credit, explaining: “You can get up to 85% of childcare costs paid back to you. If you pay for childcare while you go to work, Universal Credit can pay some of your childcare costs.
“This includes holiday clubs, after-school clubs and breakfast clubs. If you live with a partner, you both need to be working, unless your partner cannot look after your children. You have to pay for your childcare costs yourself.
“Then you report them to Universal Credit and Universal Credit pays some of the money back. If you pay for childcare after it’s been provided, we usually pay back your costs in the same assessment period that you report them.
“You should try to arrange monthly payments with your childcare provider and report those costs as soon as they are paid. This should mean your childcare costs are included in your Universal Credit every assessment period.
“You can also claim up to 3 assessment periods of future childcare costs at a time if you have paid these costs up front already, and you have proof of those costs. This includes the assessment period in which you pay the childcare costs.
“We pay these costs back over the assessment periods for which they apply. They will not be paid back in one lump sum.”
