The new rates will only be applied to Universal Credit assessment periods that have started on or after April 7 – so some people will have to wait until June to see any increase
Universal Credit is due to rise by 1.7% from April 7 – but millions of benefit claimants won’t notice the increase in their payments straight away. Universal Credit is paid monthly and is based on your “assessment period” – this takes into account your income and other factors.
But the new rates will only be applied to Universal Credit assessment periods that have started on or after April 7. Universal Credit is normally paid seven days after each monthly assessment period, so most people won’t get the increased rates until May or June – up to two months after the new rates brought in.
Turn2us benefits expert Halide Kalfaoglu gave an example of someone who has an assessment period starting before April 7. She said: “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.”
Ms Kalfaoglu also explained how it works for someone with an assessment period that starts after April 7. She said: “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.”
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. It is based on your age and if you live with someone. 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
Plans to shake-up the welfare system were revealed last week and included plans to bring in a “permanent, above-inflation rise” to the standard allowance of Universal Credit. The Government says this equates to an annual increase of £775 in cash terms by 2029/30.
Universal Credit is replacing six older legacy benefits – including Working Tax Credit, Child Tax Credit, Income Support, Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance and Housing Benefit, unless you’re in supported or temporary housing.
READ MORE: ‘I found a ‘buttery soft’ £55 jacket at M&S and predict it’s going to be a sell-out’