Universal Credit Increase for April 2025: Millions of people in the UK will see an increase in their Universal Credit payments from April 2025, following a 1.7% rise based on the latest inflation rate. The adjustment aims to help recipients manage rising living costs while ensuring that benefits keep pace with the economy.
If you rely on Universal Credit, understanding these changes is crucial. This guide explains the new payment rates, additional benefit adjustments, and how to check your updated amount.
Universal Credit Increase for April 2025
| Feature | Details |
|---|---|
| New Universal Credit Increase | 1.7% from April 2025 |
| Single Claimant Under 25 | £316.98 per month (up from £311.68) |
| Single Claimant 25 and Over | £400.14 per month (up from £393.45) |
| Couples (Both Under 25) | £497.55 per month (up from £489.23) |
| Couples (One or Both 25 and Over) | £628.10 per month (up from £617.60) |
| Other Benefit Increases | Child Element, Disabled Child Addition, Carer Element |
| Deductions Cap | Lowered from 25% to 15% |
| How to Check New Payments | Online at gov.uk |
The April 2025 Universal Credit increase will provide a 1.7% boost to payments, ensuring that benefits continue to support claimants as living costs rise. While the increase is moderate, it reflects ongoing efforts to adjust support based on economic conditions.
Make sure to check your Universal Credit statement on gov.uk to see your updated payment amount. If you need assistance, reach out to your work coach or Citizens Advice for guidance.
What Is Changing in Universal Credit Payments?
1. New Standard Allowance Rates
The Standard Allowance forms the core of Universal Credit payments, providing financial support to those on low incomes, unemployed individuals, and some disabled claimants. From April 2025, the new Universal Credit rates will be:
- Single Claimants:
- Under 25: £316.98 per month (up from £311.68).
- 25 and Over: £400.14 per month (up from £393.45).
- Couples (Joint Claims):
- Both Under 25: £497.55 per month (up from £489.23).
- One or Both 25 and Over: £628.10 per month (up from £617.60).
2. Adjustments to Additional Elements
Beyond the Standard Allowance, other Universal Credit elements will also see an increase:
- Child Element – Increased support for dependent children.
- Disabled Child Addition – Extra payments for families with disabled children.
- Limited Capability for Work Element – Financial support for those unable to work due to health conditions.
- Carer Element – Additional payments for those providing unpaid care.
These increases will ensure families and individuals receive more financial support to manage day-to-day expenses.
How Does This Impact Your Household?
1. How Much More Money Will You Get?
The 1.7% increase translates to a slight but essential boost in annual income:
- Single Claimant Under 25 → Extra £63.60 per year.
- Single Claimant 25 and Over → Extra £80.28 per year.
- Couples (Both Under 25) → Extra £99.84 per year.
- Couples (One or Both 25 and Over) → Extra £126 per year.
While these increases may seem modest, they are designed to help offset inflation and maintain the purchasing power of benefits.
2. Changes to Work Allowance and Earnings Taper
For those working while claiming Universal Credit, the Work Allowance (the amount you can earn before your Universal Credit starts reducing) remains:
- £404 per month if your Universal Credit includes housing support.
- £673 per month if it doesn’t.
Any income above this threshold results in a 55p reduction in Universal Credit for every £1 earned.
3. Lower Deductions for Debt Repayments
Starting April 2025, the Universal Credit deductions cap will be lowered from 25% to 15%. This means the maximum amount that can be taken from your payment for repaying debts (such as advance payments or rent arrears) is reduced, leaving you with more disposable income.
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Benefit Cap and Payment Limits
The Benefit Cap—the maximum amount of benefits a household can receive—will remain unchanged:
- Greater London:
- Couples (with or without children) or single claimants with a child: £25,323 per year.
- Single adult households without children: £16,967 per year.
- Rest of Great Britain:
- Couples (with or without children) or single claimants with a child: £22,020 per year.
- Single adult households without children: £14,753 per year.
These limits ensure that total benefits received do not exceed a certain amount based on location and household type.
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Check Your New Universal Credit Payment
You can check your updated Universal Credit payment in several ways:
1. Log into Your Universal Credit Account
- Visit gov.uk and log into your account.
- Check your latest Universal Credit statement to see the new amount.
2. Review Your Monthly Payment Breakdown
- Your online journal will display the new Standard Allowance and any additional elements.
3. Contact Your Work Coach
- If you have questions or concerns, send a message through your Universal Credit journal or book an appointment at your local Jobcentre Plus.
FAQs On Universal Credit Increase for April 2025
1. Who qualifies for Universal Credit?
Universal Credit is available to low-income individuals, unemployed workers, and those unable to work due to health conditions. Eligibility depends on income, savings, and household situation.
2. Will I automatically get the new Universal Credit amount?
Yes, all eligible claimants will automatically receive the increased payments from April 2025.
3. Can my Universal Credit decrease despite the increase?
Possibly. If your earnings increase, your Universal Credit may be reduced due to the taper rate.
4. How often does Universal Credit change?
Universal Credit rates are reviewed annually and adjusted based on inflation and economic conditions.
5. Where can I get help if I have financial difficulties?
If you are struggling, contact Citizens Advice, your local council, or visit gov.uk for support options.
