Yahoo News DWP making four changes to Universal Credit soon with millions affected
Four changes to Universal Credit are coming within a matter of weeks, the Department for Work and Pensions has announced. The DWP says a £240 million package for the Get Britain Working White Paper will shift department’s focus from welfare to work.
Under the new Labour Party government, it has been confirmed that benefits will increase by 1.7% from April 2025. But as Universal Credit is paid monthly in arrears based on your "assessment period", you may not see your increase filter through until as late as June 2025.
As the department shifts its focus from welfare to work, a £240 million package will open up opportunities to millions of people left behind and denied the opportunity to get into work and get on at work, the government also hopes.
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In April, a string of changes are set to be rolled out to the benefit - and here is how each impacts millions of claimants across the whole nation.
Payment increase
The government has announced a 1.7 percent increase to Universal Credit and other working-age benefits – worth an average £12.50 per month for a family on Universal Credit. Benefit payments normally rise every April in line with the previous September rate of inflation - and this includes Universal Credit.
It has been confirmed that benefits will increase by 1.7% from April 2025. The Secretary of State has also concluded her annual review of the State Pension and benefit rates, which will see a 4.1 per cent increase to the basic and new State Pensions due to the Triple Lock commitment – meaning those on the full rate of the new State Pension will now see an increase of over £470 per year.
Measures announced will also improve how the department detects and prevents fraud and error, so support is targeted where it is needed most and taxpayers know every pound is spent wisely. These changes are expected to save £7.6 billion by 2029/30.
Payment dates
There are bank holidays in April - which could impact when you're paid. If your benefit payment is due on a bank holiday, you'll usually receive it on the working day before. This applies to most benefits, including Universal Credit, Attendance Allowance, Disability Living Allowance, and State Pension.
Work and Pensions Secretary, Liz Kendall said: "We promised change, and that is what we will deliver. For too long, millions of people have been denied opportunities to work and build a better life, and too many children are growing up in poverty, harming their life chances and our country’s future.
"This Budget shows the first steps in our plan to drive up opportunity and drive down poverty in every corner of the country. There is still much more to do, but this Budget has shown change has begun."
Debt repayments
As well as boosting pensions and benefits through annual uprating, a new Fair Repayment Rate will be introduced, reducing Universal Credit deductions. This will mean 1.2 million of the poorest households will benefit by an average of £420 a year.
£1 billion, including Barnett impact, will be invested to extend the Household Support Fund in England by a full year, on top of the six months already announced, and to maintain Discretionary Housing Payments in England and Wales. This will help struggling families and pensioners facing the greatest financial hardship.
Legacy benefits ending
The DWP will continue to move more people to Universal Credit this year and expects to have sent all managed migration notices by the end of December 2025. This means all legacy benefit claimants should be moved to Universal Credit by March 2026. Universal Credit is replacing Working Tax Credit, Child Tax Credit, Income Support, Income-based Jobseeker's Allowance, Income-related Employment and Support Allowance and Housing Benefit.
