Yahoo News DWP confirms millions of Universal Credit claimants will get £40 cost of living boost from this week
Millions of claimants will be receiving a cost of living boost of around £40 a month with their Universal Credit from this week. It comes after all benefits were given a 6.7 per cent increase, which came into effect from April this year.
The uprating is based on the Consumer Price Index figure from September last year but is almost three times the current inflation level of 2.3 per cent. The State Pension went up even more, getting an 8.5 per cent boost based on pay growth being the leading factor in the triple lock used for annual increases.
Chancellor Jeremy Hunt says the Universal Credit rise would be giving people an average monthly boost of £39. This equates to £470 over this financial year.
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Some people will have received their Universal Credit at the new rate in May, others have had to wait until June as our list below indicates. Millions will be seeing the new amounts from this week, Birmingham Live reports.
Couples with children receive £1,140 in Universal Credit, on average, with a similar amount going to single parents, statistics indicate. Childless couples typically receive £820, and single people without children get £650.
On average, the Department for Work and Pensions (DWP) has calculated that each Universal Credit claim pays out around £900. However, these figures were last updated in February 2024, prior to the annual increase in benefit payments from April.
The 6.7 per cent rise means recipients will now be receiving approximately £40-£70 a month more than the previous averages.
Assessment dates and when you will see Universal Credit increase
The assessment periods for Universal Credit are determined by the date your application for the benefit was approved. Your first payment would have been received five weeks later, which then becomes your regular monthly payment date.
For instance, if you received your first Universal Credit payment on March 7, it will be on the 7th of each subsequent month, unless the 7th falls on a weekend or bank holiday. In such cases, the due date is moved forward to the nearest working day beforehand, typically the Friday.
We've outlined all the assessment periods below that will result in a payment date in June with the 2024-2025 payment rate applied for the first time. Claimants with these assessment periods have previously been paid at the old 2023-2024 rates.
Those whose assessment period runs from the 8th of one month to the 7th of the next were the first to see the new rates in their payments because the changes took effect from April 8. This means the first people to see the increase were those paid on May 14.
If your assessment period started on or after April 8, you would have noticed an increase in your payment in May. However, for those whose assessment periods began before April 8 or after April 25, they will have to wait until June.
Here are all the June dates when these individuals will see the annual increase applied to their benefits:
26th to 25th (paid 1st) - increase applied to your payment due June 1, which was a Saturday so payment date was brought forward to May 31.
27th to 26th (paid 2nd) - increase applied to your payment due June 2, which was a Sunday so payment date was brought forward to May 31.
28th to 27th (paid 3rd) - increase applied to your payment on Monday, June 3.
29th to 28th (paid 4th) - increase applied to your payment on Tuesday, June 4.
30th to 29th (paid 5th) - increase applied to your payment on Wednesday, June 5.
31st to 30th (paid 6th) - increase applied to your payment on Thursday, June 6.
1st to 31st (paid 7th) - increase applied to your payment on Friday, June 7.
2nd to 1st (paid 8th) - increase applied to your payment due on June 8, which is a Saturday so payment date will be brought forward to June 7.
3rd to 2nd (paid 9th) - increase applied to your payment on June 9, which is a Sunday so payment date will be brought forward to June 7.
4th to 3rd (paid 10th) - increase applied to your payment on Monday, June 10.
5th to 4th (paid 11th) - increase applied to your payment on Tuesday, June 11.
6th to 5th (paid 12th) - increase applied to your payment on Wednesday, June 12.
7th to 6th (paid 13th) - increase applied to your payment on Thursday, June 13.
The decision to spread out Universal Credit increases over three months (April, May and June) has been criticised as being unfair by many. A petition has been initiated to change this so that any Universal Credit assessment periods that fall partly after April 8 include the increase applied pro-rata to the number of days after that starting point.
What are the new rates of Universal Credit?
Here are the 2024-2025 payment rates of Universal Credit:
Single
Under 25: £311.68 (from £292.11)
25 or over: £393.45 (from £368.74)
Couple
Both under 25: £489.23 (from £458.51)
One or both 25 or over: £617.60 (from £578.82)
Child Amounts
First child (born before April 6, 2017): £333.33 (from £315.00)
First child (born on or after April 6, 2017) / second child and subsequent child (where an exception or transitional provision applies): £287.92 (from £269.58)
Disabled Child Additions
Lower rate addition: £156.11 (from £146.31)
Higher rate addition: £487.58 (from £456.89)
Work Capability Elements
Limited Capability for Work: £156.11 (from £146.31) - only payable for claims before April 2017
Limited Capability for Work and Work-Related Activity: £416.19 (from £390.06)
Carer's Element
£198.31 (from £185.86)
Childcare Costs
Maximum for one child: £1014.63 (from £950.92)
Maximum for two or more children: £1739.37 (from £1630.15)
Work Allowances (for one or more dependent children or limited capability for work)
Higher work allowance (no housing amount): £673 (from £631)
Lower work allowance: £404 (from £379)
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