DWP Confirms Universal Credit Changes: The Department for Work and Pensions (DWP) has confirmed that Universal Credit payments will increase by 1.7% starting in April 2025. This change is part of the UK government’s annual benefit review to adjust for inflation and help claimants keep up with the cost of living. If you are currently receiving Universal Credit, you may be wondering how much more you will get in 2025 and whether you need to take any action. In this article, we will break down the new payment rates, what they mean for different claimants, and answer frequently asked questions.
DWP Confirms Universal Credit Changes
The 1.7% Universal Credit increase in April 2025 is designed to help claimants keep up with inflation and the rising cost of living. While the increases are relatively small, they will provide some relief to millions of individuals and families across the UK. If you need further help, consider speaking with Citizens Advice or using the Turn2Us benefits calculator to check what additional support you might be entitled to.
| Category | Previous Amount (2024-25) | New Amount (April 2025) | Increase |
|---|---|---|---|
| Single (under 25) | £311.68 | £316.98 | £5.30 |
| Single (25 or over) | £393.45 | £400.14 | £6.69 |
| Couple (both under 25) | £489.23 | £497.55 | £8.32 |
| Couple (one or both 25 or over) | £617.60 | £628.10 | £10.50 |
| First child (born before April 6, 2017) | £333.33 | £339.00 | £5.67 |
| First child (born on or after April 6, 2017) / second child and subsequent children | £287.92 | £292.81 | £4.89 |
| Disabled child addition (lower rate) | £156.11 | £158.76 | £2.65 |
| Disabled child addition (higher rate) | £487.58 | £495.87 | £8.29 |
| Carer amount | £198.31 | £201.68 | £3.37 |
| Limited Capability for Work amount | £156.11 | £158.76 | £2.65 |
| Limited Capability for Work and Work-Related Activity amount | £416.19 | £423.27 | £7.08 |
| Childcare costs (one child) | £1,014.63 | £1,031.88 | £17.25 |
| Childcare costs (two or more children) | £1,739.37 | £1,768.94 | £29.57 |
What is Universal Credit?
Universal Credit is a monthly payment designed to help individuals and families with their living costs. It replaces six older benefits:
- Jobseeker’s Allowance (JSA)
- Income Support
- Working Tax Credit
- Child Tax Credit
- Housing Benefit
- Employment and Support Allowance (ESA)
The amount of Universal Credit you receive depends on factors such as your age, whether you’re single or in a couple, if you have children, and whether you have a disability or a caring responsibility.
Breakdown of the DWP Confirms Universal Credit Changes
1. Standard Allowance
This is the base amount that every claimant receives before any additional amounts are added.
- Single (under 25): £316.98 per month (up from £311.68)
- Single (25 or over): £400.14 per month (up from £393.45)
- Couple (both under 25): £497.55 per month (up from £489.23)
- Couple (one or both 25 or over): £628.10 per month (up from £617.60)
2. Additional Elements
If you qualify for extra support, additional amounts will be added to your standard allowance.
- Child Element: Parents receive an additional £339.00 for their first child (if born before April 6, 2017) and £292.81 for each subsequent child.
- Disabled Child Addition: If your child has a disability, you can receive £158.76 (lower rate) or £495.87 (higher rate).
- Limited Capability for Work: If you have a disability or long-term health condition affecting your ability to work, you may receive £158.76 or £423.27 (for more severe conditions).
- Carer Amount: If you provide at least 35 hours of unpaid care per week, you can receive £201.68.
- Childcare Costs: If you work and pay for childcare, you can get up to £1,031.88 (one child) or £1,768.94 (two or more children).
How These Changes Affect You?
Let’s look at three real-life examples to understand how these increases might affect different types of claimants.
Example 1: Single Individual Over 25
Current Situation: John, aged 30, is single with no children and currently receives £393.45 per month.
From April 2025: His allowance increases to £400.14, an increase of £6.69 per month.
Example 2: Couple with Two Children
Current Situation: Emma and Liam (both over 25) have two children. They receive £617.60 (standard allowance), £333.33 (first child), and £287.92 (second child) — a total of £1,238.85 per month.
From April 2025: Their total increases to £1,259.91, an increase of £21.06 per month.
Example 3: Single Parent with a Disabled Child
Current Situation: Sophie, 22, has a disabled child. She receives £311.68 (standard allowance), £287.92 (child element), and £487.58 (disability element) — totaling £1,087.18 per month.
From April 2025: Her total increases to £1,111.61, an increase of £24.43 per month.
UK Universal Credit Payment Dates & How to Avoid Delays
Universal Credit Login Explained: How to Track Payments and Updates
How to Log Into Your Universal Credit Account and Manage Payments
Frequently Asked Questions (FAQs)
1. Do I Need to Apply for the Universal Credit Increase?
No, the increase will be applied automatically to all existing Universal Credit claimants from April 2025.
2. When Will I Receive the Increased Payments?
Payments will increase from April 2025, but the exact date depends on your payment cycle.
3. How Is the Increase Calculated?
The 1.7% increase is based on the Consumer Prices Index (CPI) inflation rate from September 2024.
4. Can I Work While Claiming Universal Credit?
Yes, but your earnings will affect your payments. The work allowance allows you to earn a certain amount before Universal Credit starts reducing.
5. Will Other Benefits Increase in April 2025?
Yes. State Pension, Personal Independence Payment (PIP), and Disability Living Allowance (DLA) will also increase.
